Common use of Maximum Distributions Clause in Contracts

Maximum Distributions. (a) Prior to the Investment Grade Rating Date, Parent Guarantor shall not make any Distributions in excess of the greater of (i) the amount which, after giving effect to the making of any such Distribution, would exceed (x) one hundred percent (100%), for the period from May 9, 2021 through and including June 30, 2022, or (y) ninety-five (95%) at any time after June 30, 2022, in either case of Funds from Operations of the Consolidated Group for the four (4) fiscal quarter period then most recently ended and (ii) the amount of Distributions required for Parent Guarantor to comply with all applicable provisions of the Code necessary or required to allow Parent Guarantor to maintain its status as a real estate investment trust and to avoid imposition of income or excise taxes under the Code. (b) Following the date on which Parent Guarantor or Borrower has achieved an Investment Grade Rating, so long as no Default or Event of Default exists or would result therefrom, Parent Guarantor may declare or make cash Distributions to its shareholders. (c) Notwithstanding the foregoing in clause (a) and (b) above, if a Default or Event of Default exists or would result therefrom, (x) Borrower may declare and make cash Distributions to Parent Guarantor and other holders of partnership interests in Borrower with respect to any fiscal year only to the extent necessary for Parent Guarantor to distribute, and Parent Guarantor may so distribute, an aggregate amount not to exceed the minimum amount necessary for Parent Guarantor to maintain its status as a real estate investment trust and to avoid imposition of income or excise taxes under the Code; provided that upon the occurrence of any Default or Event of Default specified in §12.1(h), §12.1(i) or §12.1(j), or the acceleration of the maturity of any of the Obligations, neither Parent Guarantor nor Borrower shall make any Distributions.

Maximum Distributions. (a) Prior to the Investment Grade Rating Date, Parent Guarantor shall not make any Distributions in excess of the greater of (i) the amount which, after giving effect to the making of any such Distribution, would exceed (x) one hundred percent (100%), for the period from May 9, 2021 through and including June 30, 2022, or (y) ninety-five percent (95%) at any time after June 30, 2022, in either case of Funds from Operations of the Consolidated Group for the four (4) fiscal quarter period then most recently ended and (ii) the amount of Distributions required for Parent Guarantor to comply with all applicable provisions of the Code necessary or required to allow Parent Guarantor to maintain its status as a real estate investment trust and to avoid imposition of income or excise taxes under the Code. (b) Following the date on which Parent Guarantor or Borrower has achieved an Investment Grade Rating, so long as no Default or Event of Default exists or would result therefrom, Parent Guarantor may declare or make cash Distributions to its shareholders. (c) Notwithstanding the foregoing in clause (a) and (b) above, if a Default or Event of Default exists or would result therefrom, (x) Borrower may declare and make cash Distributions to Parent Guarantor and other holders of partnership interests in Borrower with respect to any fiscal year only to the extent necessary for Parent Guarantor to distribute, and Parent Guarantor may so distribute, an aggregate amount not to exceed the minimum amount necessary for Parent Guarantor to maintain its status as a real estate investment trust and to avoid imposition of income or excise taxes under the Code; provided that upon the occurrence of any Default or Event of Default specified in §12.1(h), §12.1(i) or §12.1(j), or the acceleration of the maturity of any of the Obligations, neither Parent Guarantor nor Borrower shall make any Distributions.