Common use of Application of Non-Operational Distributions Clause in Contracts

Application of Non-Operational Distributions. Apply all distributions received by the Borrower from any Real Estate Entity resulting from the sale or the refinancing of properties owned by such Real Estate Entity ("Non-Operational Distributions") to the payment of all Loans then outstanding; provided that if no Default or Event of Default shall have occurred and be continuing, the Non-Operational Distributions may be used by the Borrower to purchase additional limited partner or other equity interests in Real Estate Entities, subject to the limitations of Section 9.4(c)(ii) or distributed to the limited partners of the Borrower, provided that immediately after giving effect to any such distribution, (i) the Interest Coverage Ratio is greater than 7.00 to 1.00, (ii) the Borrower is compliance on a pro forma basis with all other financial covenants contained in this Agreement and (iii) no Default or Event of Default exists or would result from such distribution.