Common use of Adjustments to Renovation Reserves for Conformed Properties Clause in Contracts

Adjustments to Renovation Reserves for Conformed Properties. In the case of any Financed Property initially funded as a Non-Conforming Property, upon such Property becoming a Conformed Property that is a Non-Stabilized Property, the Loan Parties shall submit an updated Proposed Scheduled Renovation Work for such Property. If such Proposed Scheduled Renovation Work shall exceed the Scheduled Renovation Work for such Conformed Property determined pursuant to Section 6.02(a), such Proposed Scheduled Renovation Work shall thereafter constitute the updated Scheduled Renovation Work for such Conformed Property. Such updated Scheduled Renovation Work shall be used to adjust the amount of the Renovation Reserves for such Conformed Property (which shall be an amount equal to 110% of the updated Scheduled Renovation Work). If, after giving effect to such an adjustment the Funded Renovation Reserves in respect of any Conformed Property represent less than the Funded Renovation Reserves Percentage of the adjusted Renovation Reserves, no later than the tenth (10th) Business Day following delivery of such updated Proposed Scheduled Renovation Work, an amount equal to such deficiency shall be deposited by Borrowers with the Paying Agent for transfer to the Renovation Reserves Account. If, after giving effect to such an adjustment, the Funded Renovation Reserves in respect of any Conformed Property represent more than the Funded Renovation Reserves Percentage of the Renovation Reserves for such Property, the Paying Agent shall disburse such excess from the Renovation Reserves Account to the Borrower Representative (as directed in writing by the Administrative Agent pursuant to Section 6.13(c).