Common use of Use of Funding Clause in Contracts

Use of Funding. 4.3.1 The Applicant undertakes and warrants to Homes England that: (a) the Funding will be used by the Applicant for Qualifying Expenditure only; (b) in delivering the Project the Applicant shall operate the Project on a not for profit basis; (c) it shall ring-fence the Project’s income and costs on a separate not-for-profit coding on its accounts from its other commercial activities in order to prevent cross-subsidy to any of its economic activities; (d) it shall not claim the cost of any Qualifying Expenditure funded by the Funding (which, for the avoidance of doubt, in this clause does not include any part of the Funding that is not paid or that is repaid or required to be repaid) from any Leaseholder, and shall recompense Leaseholders for any expense they have incurred in paying for Works reimbursed by the Funding (including repaying any deductions from a sinking fund) irrespective of whether that Leaseholder is a Protected Leaseholder with such recompense paid directly to the bank account of the relevant Leaseholder or such other appropriate payment method of the Leaseholder's choosing promptly following the first payment of Funding to the Applicant under this Agreement and by no later than the date of second payment of Funding under this Agreement. The Leaseholders may enforce the terms of this clause 4.3.1(d) against the Applicant in the event that the Applicant breaches the terms of this clause 4.3.1(d); (e) in discharging its obligations under this Agreement the Applicant must act at all times in good faith, in commercially sensible terms and in co-operation with Homes England with the intent to deliver the Project and with proper regard to the need for propriety, value for money and efficiency in the use of public money; (f) the Applicant will record in its service charge accounts for each Leaseholder that Leaseholder's Contribution (irrespective of the Funding amount provided to the Applicant on its behalf and noting that where the Leaseholder is a Protected Leaseholder the figure may be zero) and notify the Leaseholder concerned separately as to any additional amounts of Funding Homes England have provided to the Applicant on its behalf; (g) the Applicant shall only seek to raise a service charge payment from a Leaseholder in respect of any Works which are: (i) not Qualifying Expenditure; and (ii) only to the extent that such costs are validly attributable to that Leaseholder and are not prohibited under the terms of the Building Safety Act by virtue of the Leaseholder being a Protected Leaseholder. (h) it confirms that the Leaseholders and any of the residents at the Building (where different) have been informed and notified as to the proposed financial treatment of the Project, the scope of the Works and the timeframe for completion of the Works.

Use of Funding. 4.3.1 2.1 The Applicant undertakes may only use the Capital Grant to directly fund items of Eligible Expenditure that are set out in the Approved Application. To the extent that an Operator or Facility Owner incurs the Eligible Expenditure then the Applicant must pay the relevant part of the Capital Grant to the Operator or Facility Owner rather than retaining it for itself. The Applicant must ensure that payment of the Capital Grant to an Operator or Facility Owner does not have the effect of either increasing payments made by the Operator to the Applicant (for example concession fees), or reducing payments by the Applicant to the Operator or Facility Owner that are not specifically related to the Eligible Expenditure. All amounts payable to the Operator or Facility Owner must be paid promptly by the Applicant. 2.2 For each Facility, the Applicant may not apply more than the total amount of Capital Grant funding allotted to that Facility in the Approved Application (the “Allotted Amount”) to Capital Interventions at that Facility, except as approved by Sport England (in its absolute discretion) in writing. 2.3 If the Applicant does not use all of the Allotted Amount for a Facility, the Applicant may not re-allocate the shortfall to another Facility except as approved by Sport England (in its absolute discretion) in writing. 2.4 Notwithstanding clauses 2.2 and warrants 2.3, if there is more than one Capital Intervention at a single Facility, the Applicant may re-allocate the Allotted Amount between different Capital Interventions at that Facility. 2.5 The Applicant will not use the Capital Grant for any purpose other than funding Eligible Expenditure to Homes England thatenable the Capital Interventions to be undertaken in accordance with this Agreement. Eligible Expenditure will not include any costs or expenses incurred prior to the date of this Agreement. 2.6 For the avoidance of doubt, the Capital Grant may not in any circumstances be used (in whole or in part) towards: (a) the Funding will be used profit, or redundancy or similar payments (whether by the Applicant for Qualifying Expenditure onlyOperator, the Facility Owner or the Applicant); (b) in delivering the Project the Applicant shall operate the Project on a not Paid for profit basislobbying; (c) it shall ring-fence the Project’s income and costs on a separate not-for-profit coding on its accounts from its other commercial activities in order to prevent cross-subsidy to any of its economic activitiesPetitioning for additional funding; (d) it shall not claim the cost of any Qualifying Expenditure funded by the Funding (which, for the avoidance of doubt, Contributions in this clause does not include any part of the Funding that is not paid or that is repaid or required to be repaid) from any Leaseholder, and shall recompense Leaseholders for any expense they have incurred in paying for Works reimbursed by the Funding (including repaying any deductions from a sinking fund) irrespective of whether that Leaseholder is a Protected Leaseholder with such recompense paid directly to the bank account of the relevant Leaseholder or such other appropriate payment method of the Leaseholder's choosing promptly following the first payment of Funding to the Applicant under this Agreement and by no later than the date of second payment of Funding under this Agreement. The Leaseholders may enforce the terms of this clause 4.3.1(d) against the Applicant in the event that the Applicant breaches the terms of this clause 4.3.1(d)kind; (e) in discharging its obligations under this Agreement the Applicant must act at all times in good faith, in commercially sensible terms and in co-operation with Homes England with the intent to deliver the Project and with proper regard to the need for propriety, value for money and efficiency in the use of public money; (f) the Applicant will record in its Interest payments or service charge accounts payments for each Leaseholder that Leaseholder's Contribution (irrespective of the Funding amount provided to the Applicant on its behalf and noting that where the Leaseholder is a Protected Leaseholder the figure may be zero) and notify the Leaseholder concerned separately as to any additional amounts of Funding Homes England have provided to the Applicant on its behalffinance leases; (g) the Applicant shall only seek to raise a service charge payment from a Leaseholder in respect of any Works which are: (i) not Qualifying Expenditure; and (ii) only to the extent that such costs are validly attributable to that Leaseholder and are not prohibited under the terms of the Building Safety Act by virtue of the Leaseholder being a Protected Leaseholder. (h) it confirms that the Leaseholders and any of the residents at the Building (where different) have been informed and notified as to the proposed financial treatment of the Project, the scope of the Works and the timeframe for completion of the Works.

Use of Funding. 4.3.1 The Applicant undertakes and warrants to DLUHC and Homes England that: (a) : the Funding will be used by the Applicant for Qualifying Expenditure only; (b) in delivering the Project the Applicant shall operate the Project on a not for profit basis; (c) it shall ring-fence the Project’s income and costs on a separate not-for-profit coding on its accounts from its other commercial activities in order to prevent cross-subsidy to any of its economic activities; (d) it shall not claim the cost of any Qualifying Expenditure funded by the Funding (which, for the avoidance of doubt, in this clause does not include any part of the Funding that is not paid or that is repaid or required to be repaid) from any Leaseholder, and shall recompense Leaseholders for any expense they have incurred in paying for Works reimbursed by the Funding (including repaying any deductions from a sinking fund) irrespective of whether that Leaseholder is a Protected Leaseholder with such recompense paid directly to the bank account of the relevant Leaseholder or such other appropriate payment method of the Leaseholder's choosing promptly following the first payment of Funding to the Applicant under this Agreement and by no later than the date of second payment of Funding under this Agreement. The Leaseholders may enforce the terms of this clause 4.3.1(d) against the Applicant in the event that the Applicant breaches the terms of this clause 4.3.1(d); (e) ; in discharging its obligations under this Agreement the Applicant must act at all times in good faith, in commercially sensible terms and in co-operation with DLUHC and Homes England with the intent to deliver the Project and with proper regard to the need for propriety, value for money and efficiency in the use of public money; (f) ; any Funding paid to the Applicant is agreed to take effect as a payment in lieu of service charge payments which would otherwise ordinarily be required to be paid by Leaseholders in respect of the Works, by virtue of payment obligations towards service charge liabilities contained within Lease Documents held by Leaseholders; the Applicant will record in its service charge accounts for each Leaseholder that Leaseholder's Contribution (irrespective a credit in respect of the apportionment of Funding amount provided for the Works as applies to that same Leaseholder (and the Applicant on its behalf and noting that where shall notify each Leaseholder of the Leaseholder is a Protected Leaseholder service charge contribution for the figure may be zero) and notify Works together with the Leaseholder concerned separately as to any additional amounts of Funding amount Homes England have provided to the Applicant on its behalf; (g) has contributed). the Applicant shall only seek to raise a service charge payment from a Leaseholder in respect of any Works which are: (i) not are items of Qualifying Expenditure; and (ii) only Expenditure if and to the extent that such costs are validly attributable the Leaseholder's service charge contribution exceeds Homes England's contribution (the apportionment of Funding provided for that Leaseholder) which contribution, for the avoidance of doubt, excludes any amount that is not paid by DLUHC or Homes England or which DLUHC or Homes England require to be repaid as a consequence of a breach of a provision of this Agreement; (without prejudice to Clause 6.5) if any Leaseholder has paid a service charge contribution to the Applicant that is subsequently refinanced (in whole or in part) by the Funding, the Applicant shall promptly on receipt of the Funding notify each Leaseholder and are not prohibited under reimburse each Leaseholder (by way of payment into an account specified by the terms relevant Leaseholder) the amount of the Building Safety Act by virtue of the Leaseholder being a Protected Leaseholder. (h) its refinanced service charge contribution; it confirms that the Leaseholders and any of the residents at the Building (where different) have been informed and notified as to the proposed financial treatment of the Project, the scope of the Works and the timeframe for completion of the Works.

Use of Funding. 4.3.1 4.1 The Applicant undertakes Funding shall be used by the Recipient for the delivery of the Project in accordance with the agreed budget set out in Schedule 3. For the avoidance of doubt, and warrants to Homes unless the prior written agreement of Highways England thathas been secured otherwise, the amount of the Funding that the Recipient may spend: (a) on any item of expenditure listed in column 1 of Schedule 3 shall not exceed the corresponding aggregated sum of money in column 2 and the tolerance listed in column 3; and (b) in total shall not exceed the Total (Capital funding) listed in column 1 of Schedule 3. 4.2 Where the Recipient has obtained funding from a third party in relation to its delivery of the Project (including without limitation funding for associated administration and staffing costs), the amount of such funding shall be included in the budget in Schedule 3 together with a clear description of what that funding shall be used for. 4.3 The Recipient shall not use the Funding will be used by the Applicant for Qualifying Expenditure onlyto: (a) make any payment to members of its governing body; (b) in delivering the Project the Applicant shall operate the Project on a not for profit basispurchase buildings or land; (c) it shall ring-fence the Project’s income and costs on pay for activities of a separate not-for-profit coding on its accounts from its other commercial activities in order to prevent cross-subsidy to any of its economic activitiespolitical or exclusively religious nature; (d) it pay for works or activities that any person has a statutory duty to undertake; (e) pay for any expenditure commitments of the Recipient entered into before the Commencement Date; (f) pay for depreciation, amortisation or impairment of fixed assets; (g) pay input VAT reclaimable by the funding recipient from H.M. Revenue & Customs; (h) make interest payments or service charge payments for finance leases; (i) provide gifts or entertaining; or (j) pay statutory fines, criminal fines or penalties unless this has been approved in writing by Highways England. 4.4 The Recipient shall not claim the cost of any Qualifying Expenditure funded by the Funding (which, for the avoidance of doubt, in this clause does not include spend any part of the Funding on the delivery of the Project after the Funding Period. 4.5 The Recipient shall ensure that any contract (at any stage of remoteness from the Recipient) that is used to deliver activities associated with the Funding shall include a term that a contractor (at any stage of remoteness from the Recipient) shall be paid within thirty (30) days of receipt of a valid undisputed invoice. 4.6 Should any part of the Funding remain unspent at the end of the Funding Period, the Recipient shall ensure that any unspent monies are returned to Highways England. 4.7 The Recipient shall: (a) keep Highways England appraised on progress on achieving the Milestones and whether the Milestone Dates will be achieved, and if any Milestone Date will not paid or that be achieved by the date stated in Schedule 2, when the Milestone is repaid or required to be repaid) from any Leaseholder, and shall recompense Leaseholders for any expense they have incurred in paying for Works reimbursed by the Funding (including repaying any deductions from a sinking fund) irrespective of whether that Leaseholder is a Protected Leaseholder with such recompense paid directly to the bank account of the relevant Leaseholder or such other appropriate payment method of the Leaseholder's choosing promptly following the first payment of Funding to the Applicant under this Agreement and by no later than the date of second payment of Funding under this Agreement. The Leaseholders may enforce the terms of this clause 4.3.1(d) against the Applicant in the event that the Applicant breaches the terms of this clause 4.3.1(d)achieved; (eb) in discharging its obligations under this Agreement the Applicant must act at all times in good faith, in commercially sensible terms and in co-operation with Homes England with the intent to deliver the Project and with proper regard to the need for propriety, value for money and efficiency in the use of public money; (f) the Applicant will record in its service charge accounts for each Leaseholder that Leaseholder's Contribution (irrespective within 7 days of the Funding amount provided to achievement of all the Applicant on its behalf and noting that where Test Success Criteria for the Leaseholder is a Protected Leaseholder relevant Milestone, confirm the figure may be zero) and notify date the Leaseholder concerned separately as to any additional amounts achievement of Funding Homes England have provided to the Applicant on its behalf; (g) the Applicant shall only seek to raise a service charge payment from a Leaseholder in respect of any Works which are: (i) not Qualifying ExpenditureMilestone; and (iic) only to the extent that such costs are validly attributable to that Leaseholder and are not prohibited under the terms upon completion of the Building Safety Act by virtue of the Leaseholder being a Protected Leaseholder. any Milestone, supply sufficient evidence (has described in Schedule 2) it confirms that the Leaseholders and any of Test Success Criteria for the residents at the Building (where different) have Milestone has been informed and notified as to the proposed financial treatment of the Project, the scope of the Works and the timeframe for completion of the Worksachieved.

Use of Funding. 4.3.1 The Applicant undertakes and warrants to Homes England that: (a) the Funding will be used by the Applicant for Qualifying Expenditure only; (b) in delivering the Project the Applicant shall operate the Project on a not for profit basis; (c) it shall ring-fence the Project’s income and costs on a separate not-for-profit coding on its accounts from f rom its other commercial activities in order to prevent cross-subsidy to any of its economic activities; (d) it shall not claim the cost of any Qualifying Expenditure funded by the Funding (which, for the avoidance of doubt, in this clause does not include any part of the Funding that is not paid or that is repaid or required to be repaid) from f rom any Leaseholder, and shall recompense Leaseholders for any expense exp ense they have incurred in paying for Works reimbursed by the Funding (including repaying any deductions from f rom a sinking fund) irrespective of whether that Leaseholder is a Protected Leaseholder with such recompense paid directly to the bank account of the relevant Leaseholder or such other appropriate payment method of the Leaseholder's choosing promptly following the first f irst payment of Funding to the Applicant under this Agreement and by no later than the date of second payment of Funding under this Agreement. The Leaseholders may enforce the terms of this clause 4.3.1(d) against the Applicant in the event that the Applicant breaches the terms of this clause 4.3.1(d); (e) in discharging its obligations under this Agreement the Applicant must act at all times in good faith, in commercially sensible terms and in co-operation with Homes England with the intent to deliver the Project and with proper regard to the need for propriety, value for money and efficiency in the use of public money; (f) the Applicant will record in its service charge accounts for each Leaseholder that Leaseholder's Contribution (irrespective of the Funding amount provided to the Applicant on its behalf and noting that where the Leaseholder is a Protected Leaseholder the figure may be zero) and notify the Leaseholder concerned separately as to any additional amounts of Funding Homes England have provided to the Applicant on its behalf; (g) the Applicant shall only seek to raise a service charge payment from a Leaseholder in respect of any Works which are: (i) not Qualifying Expenditure; and (ii) only to the extent that such costs are validly attributable to that Leaseholder and are not prohibited under the terms of the Building Safety Act by virtue of the Leaseholder being a Protected Leaseholder. (h) it confirms that the Leaseholders and any of the residents at the Building (where different) have been informed and notified as to the proposed financial treatment of the Project, the scope of the Works and the timeframe for completion of the Works.