Medicaid Provider Agreement. If neither Borrower nor any Property Operator is a Medicaid Participant as of the Effective Date, Borrower shall notify Lender in writing thirty (30) days prior to Borrower’s or any Property Operator’s (with respect to the Mortgaged Property) submission of its request to enter into a Medicaid Provider Agreement, and will provide Lender with copies of all correspondence and documentation received from the Governmental Authority or the Managed Care Organization concerning its submission. In the event Borrower or any Property Operator becomes a Medicaid Participant with respect to the Mortgaged Property, Borrower and such Property Operator shall execute the form of Medicaid reserve agreement and Depositary Agreement as Lender may require. The following provisions apply if a Medicaid Provider Agreement is in place as of the Effective Date or entered into at any time during the Term of the Mortgage Loan: Borrower and Property Operator shall comply with the terms and conditions of the Medicaid Provider Agreement and shall enforce the obligations of each Managed Care Organization or Governmental Authority under the applicable Medicaid Provider Agreement; Borrower and Property Operator shall maintain their respective compliance with the provider standards, including all conditions for participation, as required by the Managed Care Organization or the Governmental Authority, as applicable; Borrower or Property Operator, as applicable, shall not permit or allow more than twenty percent (20%) of the Mortgaged Property’s effective gross income to be derived from funds paid to Borrower or Property Operator by a Governmental Authority or a Managed Care Organization, as applicable, under a Medicaid Provider Agreement. Notwithstanding the foregoing, if Borrower or any Property Operator is a Medicaid Participant with respect to the Mortgaged Property, and if by reason of applicable law or regulation more than twenty percent (20%) of effective gross income is derived from funds paid to such Borrower or Property Operator by a Governmental Authority or a Managed Care Organization, Borrower and Property Operator shall take in a diligent and expeditious manner all reasonable steps necessary to comply with the preceding sentence to the extent permissible by applicable law or regulation; without the prior written consent of Lender, Borrower and Property Operator shall not: amend or otherwise modify the then-current Medicaid Provider Agreement; terminate the then-current Medicaid ...
Medicaid Provider Agreement. (1) If neither any Borrower nor the applicable Property Operator with respect to a Mortgaged Property is a Medicaid Participant as of the Effective Date, Borrower shall notify Lender in writing thirty (30) days prior to such Borrower’s or Property Operator’s (with respect to the Mortgaged Property) submission of its request to participate in the Medicaid Program, and will provide Lender with copies of all material correspondence and documentation received from the Property Jurisdiction or any authorizing entity concerning its submission, reimbursement rates or eligibility as a Medicaid Participant. In the event that (a) more than five percent (5%) of the effective gross income from the Mortgaged Properties, in the aggregate, is derived from units relying on Medicaid payments, and (b) more than twenty percent (20%) of the effective gross income from any one Mortgaged Property is derived from units relying on Medicaid payments provided that the threshold shall be increased to twenty-five percent (25%) for the Mortgaged Property known as Brookdale Xxxxx Street/Brookdale Grand Prairie, Borrower and the Property Operator for such Mortgaged Property, as applicable, shall execute a Medicaid reserve agreement and depositary agreement, each in such form as is customarily required by Lender.
