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(b) reallocate sufficient finds to pay the Excess Cost from funds allocated to <br />"Contingency" in the Project Budget; provided, however, that the City Project Manager's consent <br />to any such reallocation shall be required; or <br />(c) deposit an amount equal to the Excess Cost in a non-interest bearing <br />account (the "Overrun Account") with City from which withdrawals may be made only with the <br />consent of the City Project Manager but which will be exhausted prior to any further <br />disbursement for any line item, so that any resulting surplus in any line item of the Project <br />Budget will then be reallocated to the line item(s) in which the Excess Costs are expected to be , <br />incurred. <br />City shall have no obligation to make further disbursements until Developer has paid or <br />otherwise provided for the overrun as required above. Amounts deposited by Developer in the <br />Overrun Account for any Excess Costs shall be disbursed by City prior to the disbursement of <br />any remaining Loan proceeds in the manner described in subsection 9.3(c). <br />6.11 Cost Savings. Upon completion of and disbursement for all matters covered by any line <br />items in the Project Budget, any remaining undisbursed amounts allocated to that line item shall <br />be reallocated to "Contingency and thereafter be available for disbursement in accordance with <br />the terms of this Agreement. <br />6.12 Retainaee. City will withhold a Retainage of 10% from each Disbursement for each <br />of the Hard Cost line itemsofthe Project Cost Breakdown (and other line items thereof <br />designated for withholding of retainage) until all conditions to the final Disbursement of Hard <br />Costs have been satisfied. In lieu of City's withholding Retainage, Developer can by written <br />notice to City elect not to draw any overhead or profit as would otherwise be permitted under the <br />Construction Contract until such time as Retainage would otherwise have been released. <br />City shall not retain funds for building materials purchased by Developer for which Developer <br />supplies documentation to City proving payment in full or for soft costs. <br />6.13 Holdback. The retainage otherwise available for disbursement shall be subject to a <br />holdback of one hundred twenty-five percent (125%) of the estimated cost (as determined by the <br />City Project Manager) for "punch -list" items. Such holdback will be released when all punch -list <br />items have been completed to the satisfaction of City. <br />6.14 Waiver of Disbursement Conditions. Unless City otherwise agrees in writing, the <br />making by City of any disbursement with knowledge that any condition to such disbursement is <br />not fulfilled shall- constitute a waiver of such condition only with respect to the particular <br />disbursement made, and such condition shall be condition to all further disbursements until <br />fulfilled. <br />6.15 Modification of Disbursement Conditions and Procedures. The City Project Manager <br />shall have the authority to modify the disbursement conditions and procedures set forth herein_ in <br />order to conform them to the payment provisions of the contract for construction. <br />6.16 Other Terms and Conditions of Loan. <br />13 <br />