Common use of Project Cost Increases Clause in Contracts

Project Cost Increases. Escrow Agent shall have no liability to determine whether the Project cost exceeds the undisbursed portion of the Loan Funds. Escrow Agent will notify Owner and Lender of a possible deficiency if a draw request is delivered to the Escrow Agent in an amount Escrow Agent believes exceeds the remaining Loan Funds. Owner or Lender may then; (a) deliver the balance of the necessary Funds or (b) direct Escrow Agent to pay less than the entire draw request amount.