Common use of FF&E Reserve Clause in Contracts

FF&E Reserve. For the purpose of funding a reserve for the periodic replacement of the Unit’s Furnishings Package (the “FF&E Reserve”), the Company will deduct from Owner’s share of the Rent for the Unit in four monthly amounts in July through October’s settlement statement based upon the monthly amount specified in Schedule A. In the event Owner’s Rent does not exceed the amount due Owner after consideration of all charges to Owner, then Owner shall pay said amount to Company as part of the monthly settlement. All amounts in the FF&E Reserve maintained by the Company for all Unit Owners shall be held in a segregated account by the Company and used for the sole purpose of funding replacement of portions of the Unit’s Furnishings Package. The Owner shall have no right to a refund of any amounts in the FF&E Reserve upon a sale or transfer of Owner’s Unit, but the purchaser or transferee of the Unit shall receive the benefit of amounts held in the FF&E Reserve on behalf of the Owner’s Unit at the time or times that the Company determines to make replacements of furnishings, fixtures and equipment. The Company shall in its sole discretion establish the implementation date and required amounts for this FF& E reserve program for each Unit.