Additional REIT Provisions Sample Clauses
The "Additional REIT Provisions" clause sets out specific requirements and restrictions to ensure that a party, typically a landlord or property owner, maintains its status as a Real Estate Investment Trust (REIT) under applicable tax laws. This clause may include limitations on tenant ownership percentages, restrictions on certain types of income, or requirements for tenant reporting to prevent violations of REIT qualification rules. Its core function is to protect the REIT's favorable tax status by ensuring compliance with legal requirements, thereby minimizing the risk of disqualification and associated tax penalties.
Additional REIT Provisions. (a) The Borrower shall have the right from time to time upon notice to, but without the consent of, the Administrative Agent to change the Borrower’s Manager to the REIT or any other REIT Subsidiary determined by the REIT. Upon the occurrence of such change, the Borrower shall notify the Administrative Agent of the name and principal place of business or chief executive office of the new Borrower’s Manager within ten (10) Business Days after any change in the same.
(b) Notwithstanding the provisions of Section 1.02(b), the Borrower shall have the right from time to time upon notice to, but without the consent of, the Administrative Agent, to change its fiscal year, including the last days of its fiscal year and fiscal quarters, to correspond with those of the REIT. The Borrower shall provide written notice thereof to the Administrative Agent within ten (10) Business Days after the occurrence of such change.
(c) [Reserved.]
(d) The Borrower shall have the right to terminate (or assign to the new property manager) the existing Property Management Agreement for each Project and to replace, pursuant to this Section 14.31(d), the Property Manager by the REIT or by a management company controlled directly or indirectly by the REIT (including, without limitation, the Operating Partnership of the REIT or any other wholly-owned REIT Subsidiary). If any Project is managed by the REIT or a REIT Subsidiary, then the Borrower may dispense with the requirement of entering into a property management agreement or may enter into a new property management agreement for one or more of the Projects on such terms as it deems satisfactory (which may include, without limitation, a separate cost sharing agreement delegating responsibilities for property management to the REIT or a REIT Subsidiary); provided that, if a property management agreement is entered into, such agreement shall in all events be subordinate to the Deeds of Trust and the other Loan Documents, and, within thirty (30) days after entering into a new property management agreement, the Borrower and the new property manager will execute and deliver to the Administrative Agent a Property Manager’s Consent, with such changes thereto as may be reasonably necessary for the REIT or its Affiliates to comply with tax or other Applicable Laws pertaining to their status.
Additional REIT Provisions