Approved Operating Expenses definition

Approved Operating Expenses operating expenses incurred by Borrower which (i) are included in the Approved Operating Budget for the current calendar month, (ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other utility service to the Property or (iii) have been approved by Lender, such approval not to be unreasonably withheld, conditioned or delayed.

Approved Operating Expenses means Operating Expenses incurred by Borrower or by any Manager on Borrower’s behalf (excluding any Restricted Payments) which (i) are included in the Approved Annual Budget for the current calendar month, (ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other utility service to the Properties, (iii) are for Management Fees, or (iv) have been approved in writing by Lender as Approved Operating Expenses; provided, however, that Approved Operating Expenses shall also include, for any calendar month in which Operating Expenses exceed the Monthly Operating Expense Budgeted Amount, the amount of such excess Operating Expenses up to and not to exceed ten percent (10%) of the Monthly Operating Expense Budgeted Amount for such calendar month as to which Borrower provides to Lender a reasonably detailed explanation of the reasons for and expenditures resulting in Operating Expenses exceeding the Monthly Operating Expense Amount.

Approved Operating Expenses during a Cash Management Period, operating expenses incurred by Borrower which (i) are included in the Approved Operating Budget (as defined in Section 28(h) hereof) for the current calendar month, (ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other utility service to the Property or (iii) have been approved by Lender.

Examples of Approved Operating Expenses in a sentence

• Provided no Event of Default has occurred and is continuing, Lender shall disburse the Operating Expense Funds to Borrower to pay Approved Operating Expenses and/or Approved Extraordinary Expenses upon Borrower’s request (which such request shall be accompanied by an Officer’s Certificate detailing the applicable expenses to which the requested disbursement relates and attesting that such expense shall be paid with the requested disbursement).

• On each Monthly Payment Date occurring on and after the occurrence and continuance of a Trigger Period, Borrower shall deposit (or shall cause there to be deposited) into an Eligible Account held by Lender or Servicer (the “Operating Expense Account”) an amount equal to the aggregate amount of Approved Operating Expenses and Approved Extraordinary Expenses to be incurred by Borrower for the then current Interest Accrual Period (such amount, the “Op Ex Monthly Deposit”).

• During a Cash Management Period, on each Payment Date, a portion of the Rents that have been deposited into the Deposit Account during the immediately preceding Interest Period in an amount equal to the monthly amount set forth in the Approved Operating Budget for the following month as being necessary for payment of Approved Operating Expenses at the Property for such month, shall be transferred into a Subaccount for the payment of Approved Operating Expenses (the “Operating Expense Subaccount”).

• Provided no Event of Default shall have occurred and be continuing, Lender shall, or shall direct Servicer to, disburse Operating Expense Funds to Borrower out of the Operating Expense Account promptly following each Payment Date for the payment of Approved Operating Expenses at the Property and any Extraordinary Expenses requested by Borrower and approved by Lender in accordance with the terms hereof in each case for the applicable monthly period.

• All Monthly Gross Receipts from the Project, after deducting Approved Operating Expenses, Reimbursable Expenses and the Management Fee, shall be deposited by Manager into one or more deposit accounts designated by Owner (each a “Depository Account”).

More Definitions of Approved Operating Expenses

Approved Operating Expenses means for each Budget Year during the Term the following operating expenses reasonably and actually incurred from the operation and maintenance of Property to the extent that such operating expenses are consistent with the Annual Budget and the Annual Audited Financial Statements:

Approved Operating Expenses during a Cash Trap Period, operating expenses incurred by Borrowers which (i) are within 105% of the total amounts included in the Approved Operating Budget for the current calendar month (or for unpaid operating expenses included in the Approved Operating Budget for prior calendar months); provided that, for purposes hereof, operating expenses in such Approved Operating Budget shall be deemed to be increased from the amounts in the applicable Approved Operating Budget to the extent that such increased amounts are at least equal to an increase in operating revenues from the amounts in such Approved Operating Budget or directly relate to variances in occupancy levels or emergencies or unforeseen circumstances, (ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other utility service to the Property, (iii) are for property management fees payable to Manager under the Management Agreement, such amounts not to exceed 4% of the monthly Rents (excluding however any asset management fees payable by Borrowers to Manager pursuant to the Management Agreement; provided, however, the foregoing 4% limitation shall not be deemed to preclude Borrowers from paying any such asset management fees pursuant to the terms of the Management Agreement from their own funds) or (iv) have been approved by Lender, acting in a commercially reasonably manner. Notwithstanding the foregoing, nothing herein shall be deemed to preclude Borrowers from paying any asset management fee (over and above the amount set forth above) pursuant to the terms of the Management Agreement from their own funds. APPROVED TIC BORROWER CONTROL PARTY: a transferee of a direct or indirect interest in any TIC Borrower (which owns less than a 5% tenant in common interests in the Property) that has acquired such interest by devise or bequest or by operation of law upon the death of a natural person that was the holder of such interest; provided, however, at the time in question (i) such Approved TIC Borrower Control Party shall (1) be solvent, (2) have never been convicted of a felony, (3) have never been the subject of a voluntary or involuntary (to the extent the same has not been discharged) bankruptcy proceeding, (4) have no outstanding judgments against him/her, and (ii) Lender shall have received a credit check investigation against such Approved TIC Borrower Control Party reasonably acceptable to Lender.

Approved Operating Expenses means, with respect to calendar year 2016, the expenses set forth in the Annual Business Plan attached hereto as Exhibit “B” and incorporated herein by this reference, and for all other years during the term of this Agreement, the expenses contained in the Annual Business Plan for such year established pursuant to Section 5(e) below, together with all other operating expenses with respect to the Project which are otherwise approved by Owner or permitted pursuant to the express terms of this Agreement.

Approved Operating Expenses means the monthly Operating Expenses as set forth on the Annual Budget approved by Lender pursuant to Section 11.2.6; provided, however, that if such Annual Budget has not been approved by Lender, then the term "Approved Operating Expenses" shall mean the amount of Operating Expenses set forth on the immediately preceding Annual Budget approved by the Lender.

Approved Operating Expenses means Operating Expenses incurred by Borrower which (i) are included in the Approved Annual Budget for the current calendar month, (ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other utility service to the Property, (iii) if applicable, are for property management fees payable to Manager under the Management Agreement, such amounts not to exceed three percent (3.0)% of the monthly Gross Revenue, (iv) if applicable, are for franchise fees payable to Franchisor under the Franchise Agreement, or (v) have otherwise been approved by Lender.

Approved Operating Expenses means Operating expenses incurred by Borrower which (i) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other utility service to the Property, (ii) are for sales, use, occupancy, liquor or similar taxes at the Hotel, (iii) as customarily occurred in the normal course of business in the operation of the Hotel, or (iv) have been approved in writing by Lender.

Approved Operating Expenses means for each Budget Year during the Term hereof, commencing January 1, 2015 the following operating expenses reasonably and actually incurred from the operation and maintenance of The Shell Apartments complex to the extent that such operating expenses are consistent with the Borrower’s Annual Budget and the Borrower’s annual independent audit performed by a certified public accountant using generally accepted accounting principles: