Reserve Deposits. If and to the extent required under the provisions of Section 3.4.2 below, Borrower shall, from and after the date (and if) Borrower is required to do so under the provisions of Section 3.4.2 below, pay to Lender $19,741 (the “Monthly Capital Reserve Deposit Amount”) on each Payment Date (such deposits, the “Monthly Capital Reserve Deposits”). Lender will transfer such amounts into a Subaccount (the “Capital Reserve Subaccount”). Additionally, upon thirty (30) days’ prior notice to Borrower, Lender may reassess the amount of the monthly payment required under this Section 3.4 from time to time in its reasonable discretion (based upon its then current underwriting standards). Provided that no Event of Default has occurred and is continuing, Lender shall disburse funds held in the Capital Reserve Subaccount to Borrower, within fifteen (15) days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month), in minimum amounts of at least $5,000 provided that (i) such disbursement is for an Approved Capital Expense; (ii) Lender shall have (if it desires) verified (by an inspection conducted at Borrower’s expense (with respect to any disbursement in excess of $50,000)) performance of the work associated with such Approved Capital Expense; and (iii) the request for disbursement is accompanied by (A) an Officer’s Certificate certifying (1) that such funds will be used to pay or reimburse Borrower for Approved Capital Expenses and a description thereof, (2) that all outstanding trade payables (other than those not yet due and payable or those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (3) that the same has not been the subject of a previous disbursement, and (4) that all previous disbursements have been used to pay the previously identified Approved Capital Expenses, and (B) lien waivers or other evidence of payment satisfactory to Lender, (C) with respect to any disbursement that exceeds $50,000, at Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender and (D) such other evidence as Lender shall reasonably request that the Approved Capital Expenses at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower. Any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Expenses may, at Lender’s option, be made by joint check payable to Borrower and the payee on such Approved Capital Expenses. 23
Appears in 1 contract
Reserve Deposits. If and to the extent required under the provisions of Section 3.4.2 below, Borrower shall, from and after the date (and if) Borrower is required to do so under the provisions of Section 3.4.2 below, shall pay to Lender $19,741 7,602.33 (the “Monthly Capital Reserve Deposit Amount”) on each Payment Date (such deposits, the “Monthly Capital Reserve Deposits”). Lender will transfer such amounts into a Subaccount (the “Capital Reserve Subaccount”). Additionally, upon thirty (30) days’ prior notice to Borrower, Lender may reassess the amount of the monthly payment required under this Section 3.4 from time to time in its reasonable discretion (based upon its then current underwriting standards). Provided that no Event of Default has occurred and is continuing, Lender shall disburse funds held in the Capital Reserve Subaccount to Borrower, within fifteen (15) days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month), in minimum amounts of at least $5,000 provided that (i) such disbursement is for an Approved Capital Expense; (ii) Lender shall have (if it desires) verified (by an inspection conducted at Borrower’s expense (with respect to any disbursement in excess of $50,000)) performance of the work associated with such Approved Capital Expense; and (iii) the request for disbursement is accompanied by (A) an Officer’s Certificate certifying (1) that such funds will be used to pay or reimburse Borrower for Approved Capital Expenses and a description thereof, (2) that all outstanding trade payables (other than those not yet due and payable or those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (3) that the same has not been the subject of a previous disbursement, and (4) that all previous disbursements have been used to pay the previously identified Approved Capital Expenses, and (B) lien waivers or other evidence of payment satisfactory to Lender, (C) with respect to any disbursement that exceeds $50,000, at Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender and (D) such other evidence as Lender shall reasonably request that the Approved Capital Expenses at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower. Any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Expenses may, at Lender’s option, be made by joint check payable to Borrower and the payee on such Approved Capital Expenses. 23.
Appears in 1 contract
Reserve Deposits. If and to the extent required under the provisions of Section 3.4.2 below, Borrower shall, from and after the date (and if) Borrower is required to do so under the provisions of Section 3.4.2 below, pay to Lender $19,741 (the “Monthly Capital Reserve Deposit Amount”) on each Payment Date (such deposits, the “Monthly Capital Reserve Deposits”). Lender will transfer such amounts into a Subaccount (the “Capital Reserve Subaccount”). Additionally, upon thirty (30) days’ prior notice to Borrower, Lender may reassess the amount of the monthly payment required under this Section 3.4 from time to time in its reasonable discretion (based upon its then current underwriting standards). Provided that no Event of Default has occurred and is continuing, Lender shall disburse funds held in the Capital Reserve Subaccount to Borrower, within fifteen (15) days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month), in minimum amounts of at least $5,000 provided that (i) such disbursement is for an Approved Capital Expense; (ii) Lender shall have (if it desires) verified (by an inspection conducted at Borrower’s expense (with respect to any disbursement in excess of $50,000)) performance of the work associated with such Approved Capital Expense; and (iii) the request for disbursement is accompanied by (A) an Officer’s Certificate certifying (1) that such funds will be used to pay or reimburse Borrower for Approved Capital Expenses and a description thereof, (2) that all outstanding trade payables (other than those not yet due and payable or those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (3) that the same has not been the subject of a previous disbursement, and (4) that all previous disbursements have been used to pay the previously identified Approved Capital Expenses, and (B) lien waivers or other evidence of payment satisfactory to Lender, (C) with respect to any disbursement that exceeds $50,000, at Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender and (D) such other evidence as Lender shall reasonably request that the Approved Capital Expenses at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower. Any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Expenses may, at Lender’s option, be made by joint check payable to Borrower and the payee on such Approved Capital Expenses. 23.
Appears in 1 contract
Reserve Deposits. If and to the extent required under the provisions of Section 3.4.2 below, Borrower shall, from and after the date (and if) Borrower is required to do so under the provisions of Section 3.4.2 below, shall pay to Lender $19,741 33,333.33 (the “Monthly Capital Rollover Reserve Deposit Amount”) on each Payment Date (such deposits, the “Monthly Capital Rollover Reserve Deposits”). Lender will transfer such amounts amount into a Subaccount (the “Capital Rollover Reserve Subaccount”). AdditionallyNotwithstanding the foregoing, upon thirty no Monthly Rollover Reserve deposits shall be required to be made into the Rollover Reserve Subaccount during periods that the balance in the Rollover Reserve Subaccount exceeds $1,200,000 (30) days’ prior notice to Borrower, Lender may reassess the amount exclusive of the monthly payment required under this Section 3.4 from time proceeds of Lease Termination Payments). Borrower shall also pay to time in its reasonable discretion (based upon its then current underwriting standards)Lender for transfer into the Rollover Reserve Subaccount all Lease Termination Payments received by Borrower. Provided that no Event of Default has occurred and is continuing, Lender shall disburse funds held in the Capital Rollover Reserve Subaccount to Borrower, within fifteen ten (1510) days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month), in minimum amounts of at least $5,000 5,000, provided that (i) such disbursement is for an Approved Capital ExpenseLeasing Expenses with respect to Leases hereafter executed (it being acknowledged that leasing costs with respect to Leases existing as of the date hereof shall not qualify for disbursements from the Rollover Reserve Subaccount); (ii) Lender shall have (if it desires) verified (by an inspection conducted at Borrower’s expense (with respect to any disbursement in excess of $50,000)expense) performance of the any construction work associated with such Approved Capital ExpenseLeasing Expenses; and (iii) the request for disbursement is accompanied by (A) an Officer’s Certificate certifying (1) that such funds will be used only to pay (or reimburse Borrower for for) Approved Capital Leasing Expenses and a description thereof, (2) that all outstanding trade payables (other than those not yet due and payable or those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (3) that the same has not been the subject of a previous disbursement, and (4) that all previous disbursements have been used only to pay (or reimburse Borrower for) the previously identified Approved Capital Expenses, Leasing Expenses and (B) lien waivers or other evidence of payment satisfactory reasonably detailed supporting documentation as to Lenderthe amount, (C) with respect to any disbursement that exceeds $50,000, at Lender’s option, a title search for the Property indicating that the Property is free from all Liens, claims necessity and other encumbrances not previously approved by Lender purpose therefor; and (Div) such other evidence as Lender shall reasonably request that the Approved Capital Expenses at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower. Any any such disbursement of more than $10,000 to pay (rather than reimburse) Approved Capital Leasing Expenses may, at Lender’s option, be made by joint check payable to Borrower and the payee on of such Approved Capital Leasing Expenses. 23If Lender receives the Rollover Reserve Offset Amount from Guarantor under the Guaranty, Lender shall transfer the same to the Rollover Reserve Subaccount to be applied as provided in this Section 3.5, subject to Lender’s right to apply the same otherwise as set forth in Section 3.10 below. All disbursements from the Rollover Reserve Subaccount shall be deemed to have been made first from the proceeds of any Lease Terminations Payments deposited into the Rollover Reserve Subaccount, until all such Lease Termination Payments have been disbursed, and then from the proceeds of Monthly Rollover Reserve Deposits.
Appears in 1 contract
