Common use of Release of Capital Improvement Funds Clause in Contracts

Release of Capital Improvement Funds. Lender shall disburse the Capital Improvement Funds with respect to a particular Property only for the costs of those items set forth on the Capital Improvement Plan approved by Lender with respect to such Property as the same may be revised from time to time with the approval of Lender. Lender shall disburse to Borrower the Capital Improvement Funds with respect to a particular Property to reimburse Borrower for the actual costs incurred in connection with the Capital Improvement Plan at such Property upon satisfaction of each of the following conditions: (i) no default shall have occurred and be continuing under the Loan Documents, (ii) Borrower shall submit a request for disbursement to Lender at least ten (10) days prior to the date on which Borrower requests such disbursement be made, which request shall be accompanied by, with respect to each Property for which a disbursement from the Capital Improvement Funds is being requested, a certificate of Borrower (A) describing by category the Capital Work to be funded by the requested disbursement and the amount requested to be funded with respect to each category of Capital Work, it being agreed that the categories to be utilized in connection with such requests shall be consistent with those categories set forth in the reconciliation statement in EXHIBIT V attached hereto, (B) stating that all Capital Work to be funded by the requested disbursement has been completed in good and workmanlike manner and in accordance with all legal requirements, (C) stating that each Person who has supplied materials or labor in connection with such Capital Work has been paid all sums due and owing or will be paid all such sums upon such disbursement, (D) stating that Borrower has obtained lien waiver from all Persons supplying materials or labor in connection with any Capital Work having a cost in excess of $10,000 and (iii) Lender shall have received such other evidence as Lender shall reasonably request that the Capital Work to be funded by the requested disbursement has been completed and is paid for or will be paid upon such disbursement to Borrower, it being agreed that Lender shall have the right, but not the obligation, at any time to request copies of licenses, permits or approvals, plans and specifications, contracts, invoices, lien waivers, title searches that such Capital Work has been completed and paid for. In addition, at the time of each request Borrower shall submit to Lender, for informational purposes, a statement of capital expenditures in the form of EXHIBIT X which shall be certified by Borrower to the best of its knowledge to be true and complete. In addition, Lender shall have the right, but not the obligation, at any time to require an inspection report from Consultant with respect to any Capital Work, provided, however, that such inspection report shall not be a condition precedent to disbursement unless required by Lender and the cost of a particular item of Capital Work is in excess of $150,000. At such time as seventy percent (70%) of the amount originally budgeted with respect to the Capital Improvement Funds for a particular Property (exclusive of the 25% contingency funded in connection therewith) has been disbursed to Borrower, Lender shall not be required to make further disbursements of the Capital Improvement Funds with respect to such Property until Borrower has submitted to Lender a category by category reconciliation of the Capital Work done to date with the Capital Work originally planned and budgeted for in the Capital Improvement Plan for such Property in the form of EXHIBIT V attached hereto and Lender shall be satisfied in its reasonable judgment that the balance of the Capital Improvement Funds with respect to such Property remaining in the Capital Improvement Account with respect to such Property is sufficient to complete the remaining items of the Capital Improvement Plan, as the same may be revised with the reasonable approval of Lender (the amount by which such account balance is less than the amount necessary to complete, the "DEFICIENCY"). At the option of Lender, Lender may require Borrower to deposit into the Capital Improvement Funds Account an amount equal to the Deficiency or to invest in the Capital Work amounts equal to the Deficiency prior to further disbursements of the Capital Improvement Funds with respect to such Property. Upon satisfaction by Lender that sufficient funds remain to complete all necessary Capital Work in the Capital Improvement Plan with respect to such Property, Lender shall continue to disburse funds from the Capital Improvement Account with respect to such Property in accordance with the foregoing procedures, provided, however, that a second reconciliation and revision of the Capital Improvement Plan, if necessary, shall be completed at such time as 95% of the amount originally budgeted in the Capital Improvement Plan for such Property has been disbursed. In no event shall Lender be required to disburse the 25% contingency funded in connection with such Property until such time as all Capital Work in connection with the Capital Improvement Plan, as the same may have been revised from time to time with the approval of Lender, shall have been completed exclusive of punch list items. Upon completion of all of the Capital Work set forth in such Capital Improvement Plan with respect to a particular Property and upon satisfaction of the conditions for disbursement set forth herein, any remaining funds held in the subaccount of the Capital Improvement Funds Account with respect to such Property shall be released to Borrower. Lender shall not be required to disburse Capital Improvement Funds more frequently than once each calendar month or in amounts less than $25,000 in the aggregate, provided, however, that the final disbursement from the Capital Improvement Account may be in an amount less than $25,000. Notwithstanding the foregoing, Borrower shall, subject to compliance with the terms hereof, be entitled to up to, but not in excess of, three (3) additional disbursements from the Capital Improvement Funds. Disbursements of Capital Improvement Funds shall be deposited into the Cash Management Account.

Release of Capital Improvement Funds. Lender shall disburse the Capital Improvement Funds with respect to a particular Property only for the costs of those items set forth on the Capital Improvement Plan approved by Lender with respect to such Property as the same may be revised from time to time with the approval of Lender. Lender shall disburse to Borrower the Capital Improvement Funds with respect to a particular Property to reimburse Borrower for the actual costs incurred in connection with the Capital Improvement Plan at such Property upon satisfaction of each of the following conditions: (i) no default shall have occurred and be continuing under the Loan Documents, (ii) Borrower shall submit a request for disbursement to Lender at least ten (10) days prior to the date on which Borrower requests such disbursement be made, which request shall be accompanied by, with respect to each Property for which a disbursement from the Capital Improvement Funds is being requested, a certificate of Borrower (A) describing by category the Capital Work to be funded by the requested disbursement and the amount requested to be funded with respect to each category of Capital Work, it being agreed that the categories to be utilized in connection with such requests shall be consistent with those categories set forth in the reconciliation statement in EXHIBIT V attached hereto, (B) stating that all Capital Work to be funded by the requested disbursement has been completed in good and workmanlike manner and in accordance with all legal requirements, (C) stating that each Person who has supplied materials or labor in connection with such Capital Work has been paid all sums due and owing or will be paid all such sums upon such disbursement, (D) stating that Borrower has obtained lien waiver from all Persons supplying materials or labor in connection with any Capital Work having a cost in excess of $10,000 and (iii) Lender shall have received such other evidence as Lender shall reasonably request that the Capital Work to be funded by the requested disbursement has been completed and is paid for or will be paid upon such disbursement to Borrower, it being agreed that Lender shall have the right, but not the obligation, at any time to request copies of licenses, permits or approvals, plans and specifications, contracts, invoices, lien waivers, title searches that such Capital Work has been completed and paid for. In addition, at the time of each request Borrower shall submit to Lender, for informational purposes, a statement of capital expenditures in the form of EXHIBIT X which shall be certified by Borrower to the best of its knowledge to be true and complete. In addition, Lender shall have the right, but not the obligation, at any time to require an inspection report from Consultant with respect to any Capital Work, provided, however, that such inspection report shall not be a condition precedent to disbursement unless required by Lender and the cost of a particular item of Capital Work is in excess of $150,000. At such time as seventy percent (70%) of the amount originally budgeted with respect to the Capital Improvement Funds for a particular Property (exclusive of the 25% contingency funded in connection therewith) has been disbursed to Borrower, Lender shall not be required to make further disbursements of the Capital Improvement Funds with respect to such Property until Borrower has submitted to Lender a category by category reconciliation of the Capital Work done to date with the Capital Work originally planned and budgeted for in the Capital Improvement Plan for such Property in the form of EXHIBIT V attached hereto and Lender shall be satisfied in its reasonable judgment that the balance of the Capital Improvement Funds with respect to such Property remaining in the Capital Improvement Account with respect to such Property is sufficient to complete the remaining items of the Capital Improvement Plan, as the same may be revised with the reasonable approval of Lender (the amount by which such account balance is less than the amount necessary to complete, the "DEFICIENCYDeficiency"). At the option of Lender, Lender may require Borrower to deposit into the Capital Improvement Funds Account an amount equal to the Deficiency or to invest in the Capital Work amounts equal to the Deficiency prior to further disbursements of the Capital Improvement Funds with respect to such Property. Upon satisfaction by Lender that sufficient funds remain to complete all necessary Capital Work in the Capital Improvement Plan with respect to such Property, Lender shall continue to disburse funds from the Capital Improvement Account with respect to such Property in accordance with the foregoing procedures, provided, however, that a second reconciliation and revision of the Capital Improvement Plan, if necessary, shall be completed at such time as 95% of the amount originally budgeted in the Capital Improvement Plan for such Property has been disbursed. In no event shall Lender be required to disburse the 25% contingency funded in connection with such Property until such time as all Capital Work in connection with the Capital Improvement Plan, as the same may have been revised from time to time with the approval of Lender, shall have been completed exclusive of punch list items. Upon completion of all of the Capital Work set forth in such Capital Improvement Plan with respect to a particular Property and upon satisfaction of the conditions for disbursement set forth herein, any remaining funds held in the subaccount of the Capital Improvement Funds Account with respect to such Property shall be released to Borrower. Lender shall not be required to disburse Capital Improvement Funds more frequently than once each calendar month or in amounts less than $25,000 in the aggregate, provided, however, that the final disbursement from the Capital Improvement Account may be in an amount less than $25,000. Notwithstanding the foregoing, Borrower shall, subject to compliance with the terms hereof, be entitled to up to, but not in excess of, three (3) additional disbursements from the Capital Improvement Funds. Disbursements of Capital Improvement Funds shall be deposited into the Cash Management Account.