INITIAL RESERVES definition
INITIAL RESERVES. Each Borrower will establish sufficient initial reserves (i) for taxes and insurance, which reserves shall be funded at closing in an amount sufficient, as determined by Capital America, inclusive of the ongoing reserves described below, to make the next due real estate tax and insurance premium payments, (ii) for deferred maintenance items as set forth in the property condition reports, if any, and (iii) environmental remediation amounts as set forth in the environmental reports.
INITIAL RESERVES means the difference between (A) an amount equal to the sum of amounts shown on liability (page 3) lines 1 through 8 and 9.1, 9.2, and 9.3 of the Company's Annual Statement as filed with the Office of the Commissioner of Insurance of the Commonwealth of Puerto Rico (the "Annual Statement"), and (B) the amount equal to the sum of the amounts shown as admitted assets on asset lines 12.1 and 12.2 of the Annual Statement; provided it is understood and agreed that for purposes of computation contemplated hereunder the Company's initial reserves as of December 31, 2005 shall be deemed to be the Company's initial reserves as of the effective date of the Agreement. The Reinsurer shall establish, on its statutory financial statements for each reporting period, reserves and other financial items on a basis consistent with the reinsurance share of the initial reserves. ...END OF ARTICLE VI
INITIAL RESERVES means the estimated required lifetime reserves established in accordance with the Reserve Administration Agreement on Valuation Period Assets at the time of funding of each Valuation Period Asset through an RPU.
More Definitions of INITIAL RESERVES
INITIAL RESERVES. The Borrower will establish a reserve for existing deferred maintenance. The deferred maintenance reserve will be funded at closing. The amount required to be funded therein will be 125% of the amount specified in the property condition reports obtained during Capital America's due diligence review, as the amount of deferred maintenance required to be completed within the first year following closing. Borrower may draw on the deferred maintenance reserve by presenting Officer's Certificates indicating a completion of and cost of completion of each item of deferred maintenance listed in the property condition report. All remaining funds in such reserve will be paid to Borrower when the last item on the list is completed and appropriate documentation is provided. The deferred maintenance reserve will be maintained by the servicer/trustee in accounts established by the servicer/trustee, and funds therein will be invested in permitted investments for the benefit of the Borrower. Borrower will also establish sufficient initial reserves for taxes and insurance, which reserves shall be funded at closing. The amount of such reserves will be determined by Capital America in amount sufficient, inclusive on ongoing reserves described below, to make the next due tax and insurance payments.
INITIAL RESERVES means, as of any time, the reserves commencing on the Closing Date imposed for returns, discounts and similar allowances and aggregating not in excess of 20% of the then unpaid amount of the Eligible Accounts.