Common use of Replacement Reserve Clause in Contracts

Replacement Reserve. Borrower agrees that it will perform, or cause to be performed, all repairs and replacements necessary to maintain the Property in good working order, in accordance with its condition as of the date hereof. Simultaneously herewith, and on each Payment Date until the Note is paid in full, Borrower shall pay to Lender the sum of $950.84 to be held in a reserve fund (the “Replacement Reserve”) subject to this Mortgage and the Other Mortgages, for payment of certain repairs and replacements at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses (the “Repairs”). Notwithstanding the foregoing, Borrower shall not be required to make a deposit into the Replacement Reserve to the extent that any such deposit would increase the amount in the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.00. Borrower shall perform, or cause Principal Tenant to perform, all Repairs in a good and workmanlike manner, in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulations. So long as no Default shall exist and be continuing, Lender shall, to the extent funds are available for such purpose in the Replacement Reserve, disburse to Borrower the amount paid or incurred by Borrower in performing the Repairs as required above upon satisfaction of the requirements set forth in Section 1.29 of this Mortgage. Lender may, at Borrower’s expense, make or cause to be made an inspection of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Property. In the event that such inspection reveals that further Repairs are required, Lender shall provide Borrower with a written description of the required Repairs, and Borrower shall complete, or cause Principal Tenant to complete, such Repairs to Lender’s reasonable satisfaction within ninety (90) days after Lender’s notice, or such later date as may be approved by Lender in its discretion.

Replacement Reserve. Borrower agrees that it will perform, or cause to be performed, all repairs and replacements necessary to maintain the Property in good working order, in accordance with its condition as of the date hereof. Simultaneously herewith, and on each Payment Date until the Note is paid in full, Borrower shall pay to Lender the sum of $950.84 1,283.33 to be held in a reserve fund (the “Replacement Reserve”) subject to this Mortgage and the Other MortgagesDeed of Trust, for payment of certain repairs and replacements at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses (the “Repairs”). Notwithstanding the foregoing, Borrower shall not be required to make a deposit into the Replacement Reserve to the extent that any such deposit would increase the amount in the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.0030,800.00. Borrower shall perform, or cause Principal Tenant to perform, all Repairs in a good and workmanlike manner, in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulations. So long as no Default shall exist and be continuing, Lender shall, to the extent funds are available for such purpose in the Replacement Reserve, disburse to Borrower the amount paid or incurred by Borrower in performing the Repairs as required above upon satisfaction of the requirements set forth in Section 1.29 of this MortgageDeed of Trust. Lender may, at Borrower’s expense, make or cause to be made an inspection of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Property. In the event that such inspection reveals that further Repairs are required, Lender shall provide Borrower with a written description of the required Repairs, and Borrower shall complete, or cause Principal Tenant to complete, such Repairs to Lender’s reasonable satisfaction within ninety (90) days after Lender’s notice, or such later date as may be approved by Lender in its discretion.

Replacement Reserve. Borrower agrees that it will perform, or cause to be performed, all repairs and replacements necessary to maintain the Property in good working order, in accordance with its condition as of the date hereof. Simultaneously herewith, and on each Payment Date until the Note is paid in full, Borrower shall pay to Lender the sum of $950.84 194.74 to be held in a reserve fund (the “Replacement Reserve”) subject to this Mortgage and the Other Mortgages, for payment of certain repairs and replacements at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses (the “Repairs”). Notwithstanding the foregoing, Borrower shall not be required to make a deposit into the Replacement Reserve to the extent that any such deposit would increase the amount in the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.00. Borrower shall perform, or cause Principal Tenant to perform, all Repairs in a good and workmanlike manner, in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulations. So long as no Default shall exist and be continuing, Lender shall, to the extent funds are available for such purpose in the Replacement Reserve, disburse to Borrower the amount paid or incurred by Borrower in performing the Repairs as required above upon satisfaction of the requirements set forth in Section 1.29 of this Mortgage. Lender may, at Borrower’s expense, make or cause to be made an inspection of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Property. In the event that such inspection reveals that further Repairs are required, Lender shall provide Borrower with a written description of the required Repairs, and Borrower shall complete, or cause Principal Tenant to complete, such Repairs to Lender’s reasonable satisfaction within ninety (90) days after Lender’s notice, or such later date as may be approved by Lender in its discretion.

Replacement Reserve. Borrower agrees that it will perform, or cause to be performed, all repairs (a) Tenant shall establish and replacements necessary to maintain in effect throughout the Property in good working order, in accordance with its condition as of the date hereof. Simultaneously herewith, and on each Payment Date until the Note is paid in full, Borrower shall pay to Lender the sum of $950.84 to be held in Term hereof a cash reserve fund (the “Replacement Reserve”) subject in an amount equal to this Mortgage $500 per licensed bed for each of the Facilities, which amount shall be funded by Tenant as hereinafter set forth and the Other Mortgagesheld by Landlord in a cash account on its books and records, for the payment of certain costs and expenses associated with capital improvements, repairs and replacements of every kind and nature to be performed at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses Facilities (the “RepairsCapital Improvements”), and for no other purpose. Notwithstanding During the foregoinginitial two (2) Lease Years, Borrower Tenant shall not deliver to Landlord, simultaneously with each of the four installments of Base Rent to be paid during each calendar month, and in addition to all other amounts due hereunder, an amount equal to one-ninety-sixth (1/96th) of the required Replacement Reserve to make a be deposited into the Replacement Reserve. On or before the last day of each Lease Year, Tenant shall deposit into the Replacement Reserve such additional amounts as may be necessary to the extent that replenish any such deposit would increase the amount in amounts drawn from the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.00during such Lease Year. Borrower Disbursements shall perform, or cause Principal Tenant to perform, all Repairs in a good and workmanlike manner, be made from the Replacement Reserve only in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulationsthis paragraph. So long as no Event of Default shall exist has occurred and be is continuing, Lender shalland no event or circumstance exists which, with the giving of notice, the passage of time or both, would become an Event of Default, Landlord shall disburse to Tenant from the extent funds are available for such purpose Replacement Reserve (but in no event to exceed amounts on deposit in the Replacement Reserve), disburse within ten (10) business days after Tenant’s written request (and provision to Borrower Landlord of any supporting documentation reasonably required by Landlord), the amount paid costs and expenses incurred installing or incurred by Borrower in performing the Repairs as required above upon satisfaction constructing any Capital Improvements, provided such written notice includes a detailed description of the requirements set forth Capital Improvements installed or constructed together with an invoice for the work done. With each draw request, Tenant will deliver to Landlord (i) a certification by Tenant that the work for which the draw to be funded has been completed in Section 1.29 accordance with applicable legal requirements, and (ii) such additional supporting evidence as may be requested by Landlord in its reasonable judgment, including such items as invoices, receipts or other evidence verifying the cost of this Mortgagesuch work, together with affidavits and/or lien waivers from those providing work, materials or supplies for such portion of the work (provided it shall not be a requirement that Tenant shall have made any payment on such invoice, unless necessary to procure the required lien waiver). Lender Tenant will additionally furnish to Landlord evidence that all necessary or required approvals or consents from governmental authorities have been obtained. In authorizing any disbursement from the Replacement Reserve, Landlord shall be entitled to rely on Tenant’s written request and supporting documentation without any inquiry into the accuracy, validity or contestability of any such amount or the nature or necessity of the materials provided or the work performed. Landlord may, at Borrower’s expenseany time and from time to time, but shall have no obligation to, make or cause to be made an inspection inspections of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Propertyany Facility. In the event that any inspection report from any such inspection reveals reasonably recommends that further Repairs Capital Improvements are requiredrequired or anticipated that are the obligation of Tenant in accordance the terms of this Lease, Lender Landlord shall provide Borrower Tenant with a written description of such Capital Improvements and Tenant shall then complete those Capital Improvements to the required Repairs, and Borrower shall complete, or cause Principal Tenant to complete, such Repairs to Lender’s reasonable satisfaction within ninety (90) days of Landlord as expeditiously as is reasonably practicable under the circumstances after Lender’s notice, or the receipt of such later date as may be approved by Lender in its discretiondescription from Landlord.

Replacement Reserve. Borrower agrees that it will perform, or cause (a) So long as (i) the Debt Service Coverage Ratio is less than 1.50:1.00 and (ii) less than seventy-five percent (75%) of the total number of rentable square feet at the Properties is leased pursuant to be performed, all repairs Wachovia Leases having terms and replacements necessary conditions substantially similar to maintain the Property those Wachovia Leases in good working order, in accordance with its condition effect as of the date hereof. Simultaneously herewith, and on each Payment Date until the Note is paid in fullClosing Date, Borrower shall pay to Lender on each Payment Date the sum of $950.84 to Replacement Reserve Monthly Deposit (such amounts so deposited shall hereinafter be held in a reserve fund (called the “Replacement ReserveReserve Funds”) subject for replacements and repairs required to this Mortgage and be made to each Property during the Other Mortgagescalendar year (collectively, for payment of certain repairs and replacements at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses (the “RepairsReplacements”). Notwithstanding the foregoing, Borrower shall not be required to make a deposit into The account in which the Replacement Reserve Funds are held shall hereinafter be referred to as the “Replacement Reserve Account.” Lender may reassess its estimate of the Replacement Reserve Monthly Deposit from time to time, and may increase same upon thirty (30) days notice to Borrower if Lender determines in its reasonable discretion that an increase is necessary to maintain the proper maintenance and operation of any of the Properties. Notwithstanding anything contained in this clause (a) to the extent that contrary, the Replacement Reserve Funds shall not include any costs of Replacements at any Property which are required to be paid by Wachovia pursuant to the Wachovia Lease applicable to such Property. At such time as (i) the Debt Service Coverage Ratio is equal to or greater than 1.75:1.00 and (ii) seventy-five percent (75%) or more of the total number of rentable square feet at the Properties is leased pursuant to Wachovia Leases having terms and conditions substantially similar to those Wachovia Leases in effect as of the Closing Date, all funds then on deposit would increase the amount in the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.00. Borrower Account shall performbe returned to Borrower, or cause Principal Tenant to perform, all Repairs in a good provided no Event of Default has occurred and workmanlike manner, in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulations. So long as no Default shall exist and be is then continuing, Lender shall, to the extent funds are available for such purpose in the Replacement Reserve, disburse to Borrower the amount paid or incurred by Borrower in performing the Repairs as required above upon satisfaction of the requirements set forth in Section 1.29 of this Mortgage. Lender may, at Borrower’s expense, make or cause to be made an inspection of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Property. In the event that such inspection reveals that further Repairs are required, Lender shall provide Borrower with a written description of the required Repairs, and Borrower shall complete, or cause Principal Tenant to complete, such Repairs to Lender’s reasonable satisfaction within ninety (90) days after Lender’s notice, or such later date as may be approved by Lender in its discretion.

Replacement Reserve. Borrower Bxxxxxxx agrees that it will perform, or cause to be performed, all repairs and replacements necessary to maintain the Property in good working order, in accordance with its condition as of the date hereof. Simultaneously herewith, Borrower shall pay to Lender the sum of $94,500.00, and simultaneous herewith and on each Payment Date until the Note is paid in full, Borrower shall pay to Lender the sum of $950.84 533.33 to be held in a reserve fund (the “Replacement Reserve”) subject to this Mortgage and the Other MortgagesDeed of Trust, for payment of certain repairs and replacements at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses (the “Repairs”). Notwithstanding the foregoing, Borrower shall not be required to make a deposit into the Replacement Reserve to the extent that any such deposit would increase the amount in the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.0012,800.00. Borrower shall perform, or cause Principal Tenant to perform, all Repairs in a good and workmanlike manner, in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulations. So long as no Default shall exist and be continuing, Lender shall, to the extent funds are available for such purpose in the Replacement Reserve, disburse to Borrower the amount paid or incurred by Borrower in performing the Repairs as required above upon satisfaction of the requirements set forth in Section 1.29 of this MortgageDeed of Trust. Lender may, at Borrower’s expense, make or cause to be made an inspection of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Property. In the event that such inspection reveals that further Repairs are required, Lender shall provide Borrower with a written description of the required Repairs, and Borrower shall complete, or cause Principal Tenant to complete, such Repairs to Lender’s reasonable satisfaction within ninety (90) days after LenderLxxxxx’s notice, or such later date as may be approved by Lender in its discretion.

Replacement Reserve. Borrower agrees that it will perform, or cause to be performed, all repairs and replacements necessary to maintain the Property in good working order, in accordance with its condition as of the date hereof. Simultaneously herewith, and on each Payment Date until the Note is paid in full, Borrower shall pay to Lender the sum of $950.84 588.34 to be held in a reserve fund (the “Replacement Reserve”) subject to this Mortgage and the Other Mortgages, for payment of certain repairs and replacements at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses (the “Repairs”). Notwithstanding the foregoing, Borrower shall not be required to make a deposit into the Replacement Reserve to the extent that any such deposit would increase the amount in the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.00. Borrower shall perform, or cause Principal Tenant to perform, all Repairs in a good and workmanlike manner, in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulations. So long as no Default shall exist and be continuing, Lender shall, to the extent funds are available for such purpose in the Replacement Reserve, disburse to Borrower the amount paid or incurred by Borrower in performing the Repairs as required above upon satisfaction of the requirements set forth in Section 1.29 of this Mortgage. Lender may, at Borrower’s expense, make or cause to be made an inspection of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Property. In the event that such inspection reveals that further Repairs are required, Lender shall provide Borrower with a written description of the required Repairs, and Borrower shall complete, or cause Principal Tenant to complete, such Repairs to Lender’s reasonable satisfaction within ninety (90) days after Lender’s notice, or such later date as may be approved by Lender in its discretion.

Replacement Reserve. Borrower agrees that it will performThe Customers shall spend, or cause to have spent, a minimum spending amount (the "Minimum Spending Requirement") for the Grand Hotel equal to 4% of the annual Gross Revenues (as defined below) from the Grand Hotel per annum on repair, replacement and maintenance of the Grand Hotel during the applicable calendar year, which Minimum Spending Requirement for calendar year 1996 shall be performedexpended to complete the work recommended by Oldham & Seltx xx the Architecture and Engineering Report, all repairs and replacements necessary to maintain the Property in good working order, in accordance with its condition dated as of December 1, 1995, prepared by Oldham & Seltx, x copy of which is attached hereto as Exhibit B. The Minimum Spending Requirement for each calendar year shall be determined annually by Lehmxx, xxd shall be based on Gross Revenues for the date hereof. Simultaneously herewith, and on each Payment Date until the Note is paid in full, Borrower shall pay to Lender the sum of $950.84 to be held in a reserve fund (the “Replacement Reserve”) subject to this Mortgage and the Other Mortgages, for payment of certain repairs and replacements at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses (the “Repairs”). Notwithstanding the foregoing, Borrower shall not be required to make a deposit into the Replacement Reserve to the extent that any such deposit would increase the amount in the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.00. Borrower shall perform, or cause Principal Tenant to perform, all Repairs in a good and workmanlike manner, in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulations. So long as no Default shall exist and be continuing, Lender shall, to the extent funds are available for such purpose in the Replacement Reserve, disburse to Borrower the amount paid or incurred by Borrower in performing the Repairs as required above upon satisfaction of the requirements set forth in Section 1.29 of this Mortgage. Lender may, at Borrower’s expense, make or cause to be made an inspection of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Propertyimmediately preceding calendar year. In the event that the Customers have spent more than the Minimum Spending Requirement in any calendar year, Customers may apply such inspection reveals that further Repairs are requiredexcess, Lender shall provide Borrower with a written description up to an amount equal to 2% of the required Repairsannual Gross Revenues from the Grand Hotel to reduce the amount of the Minimum Spending Requirement that must be spent in the immediately succeeding calendar year. The Customers shall deliver evidence reasonably satisfactory to Lehmxx xx more frequently than monthly, but at least quarterly, of the portion of the Minimum Spending Requirement that has been spent; such evidence shall include copies of paid invoices or other receipts for work done or materials provided and Borrower such other information as reasonably requested by Lehmxx. Xor purposes of this Section 4.20, Gross Revenues shall completemean all income, or cause Principal Tenant to completerents, such Repairs to Lender’s reasonable satisfaction within ninety (90) days after Lender’s noticeroom rates, or such later date as may be approved by Lender in its discretionadditional rents, revenues, issues and profits and other items including without limitation, all revenues and credit card receipts collected from guest rooms, restaurants, meeting rooms, bars, mini-bars, banquet rooms, recreation facilities, vending machines and concessions derived from the customary operation of the Grand Hotel."

Replacement Reserve. Borrower Bxxxxxxx agrees that it will perform, or cause to be performed, all repairs and replacements necessary to maintain the Property in good working order, in accordance with its condition as of the date hereof. Simultaneously herewith, and on each Payment Date until the Note is paid in full, Borrower shall pay to Lender the sum of $950.84 502.08 to be held in a reserve fund (the “Replacement Reserve”) subject to this Mortgage and the Other MortgagesDeed of Trust, for payment of certain repairs and replacements at the Property which, under generally accepted accounting principles, are categorized as capital expenses and not as operating expenses (the “Repairs”). Notwithstanding the foregoing, Borrower shall not be required to make a deposit into the Replacement Reserve to the extent that any such deposit would increase the amount in the Replacement Reserve (after deducting any pending disbursement requests therefrom) above $62,100.0012,050.00. Borrower shall perform, or cause Principal Tenant to perform, all Repairs in a good and workmanlike manner, in accordance with all applicable codes and regulations, and each case in a manner satisfactory to Lender and as necessary to maintain the Property in good condition and in compliance with all applicable laws, ordinances, rules and regulations. So long as no Default shall exist and be continuing, Lender shall, to the extent funds are available for such purpose in the Replacement Reserve, disburse to Borrower the amount paid or incurred by Borrower in performing the Repairs as required above upon satisfaction of the requirements set forth in Section 1.29 of this MortgageDeed of Trust. Lender may, at Borrower’s expense, make or cause to be made an inspection of the Property to determine the need, as determined by Lender in its reasonable judgment, for further Repairs of the Property. In the event that such inspection reveals that further Repairs are required, Lender shall provide Borrower with a written description of the required Repairs, and Borrower shall complete, or cause Principal Tenant to complete, such Repairs to Lender’s reasonable satisfaction within ninety (90) days after LenderLxxxxx’s notice, or such later date as may be approved by Lender in its discretion.