Underwritten Cash Flow definition
Underwritten Cash Flow. With respect to any Mortgage Loan, the cash flow available for debt service on the related Mortgage Loan for a __-month period, as determined by _________ in accordance with the standards of a prudent commercial mortgage lender based upon recent information supplied by the related Borrower prior to the origination of such Mortgage Loan, and adjusted, if determined appropriate by , to: (a) deduct any non-cash items such as depreciation or amortization; (b) deduct capital expenditures; (c) reflect a more appropriate occupancy rate; (d) reflect replacement, capital expenditure and other reserves required by the related Mortgage Loan Documents; (e) reflect a market rate management fee; (f) exclude certain percentage rent, delinquent rents and non-recurring income; (g) reflect an allowance for tenant improvements and leasing commissions; and (h) reflect such other adjustments determined appropriate by
Underwritten Cash Flow means, with respect to any Mortgaged Property or REO Property, for any twelve month period (or such shorter period calculated on an annualized basis), the underwritable cash flow amount calculated in accordance with Exhibit G hereto.
Underwritten Cash Flow means the Net Operating Income for the most recently available 12 full calendar month period preceding the date of calculation as set forth in the financial statements required hereunder, without deduction for (i) actual management fees incurred in connection with the operation of the Properties, (ii) actual franchise fees incurred in connection with the operation of the Properties, or (iii) amounts paid to the Reserve Funds, less (A) management fees equal to the greater of (1) assumed management fees of four percent (4%) of Gross Income from Operations or (2) the actual management fees incurred, (B) the actual franchise fees incurred and (C) the greater of (1) actual Replacement Reserve Fund contributions equal to 4% of Gross Income From Operations and (2) contributions for Replacements required pursuant to the Management Agreements and the Franchise Agreements, as the foregoing may be adjusted to be consistent with Lender's then current Commercial Lending Program Criteria.
More Definitions of Underwritten Cash Flow
Underwritten Cash Flow in each case is an estimate of stabilized cash flow available for debt service. In general, it is the estimated stabilized revenue derived from the use and operation of a Mortgaged Property (consisting primarily of rental income) less the sum of (a) estimate stabilized operating expenses (such as utilities, administrative expenses, repairs and maintenance, management fees and advertising), (b) fixed expenses (such as insurance, real estate taxes and, if applicable, ground lease payments) and (c) reserves for capital expenditures, including tenant improvement costs and leasing commissions. Underwritten Cash Flow generally does not reflect interest expenses and non-cash items such as depreciation and amortization. In determining Underwritten Cash Flow for a Mortgaged Property, the Servicer may rely on rent rolls and other generally unaudited financial information provided by the respective borrowers and may estimate cash flow taking into account historical financial statements, material changes in the operating position of the Mortgaged Property, and estimated capital expenditures, leasing commission and tenant improvement reserves. The Servicer may make certain changes to operating statements and operating information obtained from the respective borrowers. In the case of the Pari Passu Loan, the Underwritten Cash Flow produced by the related Mortgaged Property will be allocated to the Pari Passu Loan on a pro rata basis based upon the respective principal balances of the Related Trust Fund Mortgage Loan and the Pari Passu Loan.