Common use of Books and Records; Annual Budget; Project Manager Clause in Contracts

Books and Records; Annual Budget; Project Manager. (a) The Borrower hereby covenants to grant the Authority, the Oversight Agent and the Trustee (who shall have no duty to audit or inspect), or their duly authorized representatives, access to the books and records of the Borrower pertaining to the Loan and the Project during normal business hours and upon prior notice, and to make such books and records available for audit and inspection to the Authority, the Oversight Agent, the Trustee and their duly authorized representatives at reasonable times and under reasonable conditions. (b) At least 60 days prior to the beginning of each fiscal year of the Borrower, beginning with the fiscal year ending June 30, 2017, the Borrower shall prepare an annual budget and submit such budget for approval by the Authority and the Oversight Agent. Such annual budget shall provide for Net Operating Revenues, including projected interest income on the Debt Service Reserve Fund, at least equal to (i) [1.30] times scheduled debt service on the Bonds in such fiscal year, (ii) [1.00] times the sum of (A) the aggregate scheduled debt service on the Bonds in such fiscal year, and (B) the annual fees of the Trustee and the Oversight Agent for such fiscal year, (iii) amounts necessary to replenish the amount on deposit in the Repair and Replacement Fund to the amount required by Section 5.7(g) of the Indenture, (iv) amounts necessary to replenish any withdrawal from the Debt Service Reserve Fund, and (v) an amount sufficient to pay the Authority Annual Fee and the fees and expenses of the Fiduciaries. Within 20 days of receiving such annual budget, the Authority, and the Oversight Agent shall provide comments (not inconsistent with the requirements of this Agreement and the Regulatory Agreement), if any (including any suggested changes acceptable to the Oversight Agent), in writing to the Borrower. The Borrower shall attempt in good faith to address comments and concerns of the Authority in its final budget. The Borrower shall prepare a revised annual budget and provide such revised budget to the Authority and the Oversight Agent for their review and comment. The Borrower shall provide a copy of the final annual budget to the Authority and the Oversight Agent prior to the beginning of the Borrower’s fiscal year. In the event the annual budget as adopted does not provide for the coverage set forth in the second sentence of this paragraph (b), then in the case of a failure to meet the coverage requirement set forth in subsection (i) of said sentence, the Owners of a majority in Outstanding Principal Amount of the Bonds each shall have the right, in addition to all other rights provided under this Loan Agreement and the Indenture, to direct the Borrower to remove the Project Manager and appoint a Project Manager acceptable to the Authority and such Owners. (c) Within 20 days after the last day of each quarter, the Borrower shall prepare a statement for the immediately preceding quarter for review by the Authority and the Oversight Agent, which shall include statement of income, balance sheet, cashflow, budget variances, occupancy rates, rental activity and rental rates for the Project. (d) Within 60 days after the last day of each fiscal year of the Borrower, the Borrower shall provide a certificate to the Authority and the Oversight Agent that the Borrower has made a review of its activities during the preceding fiscal year for the purpose of determining whether or not the Borrower has complied with all of the terms, provisions and conditions of this Agreement, the Regulatory Agreement and the Deed of Trust and shall certify that the Borrower has kept, observed, performed and fulfilled each and every covenant, provision and condition of this Agreement, the Regulatory Agreement and the Deed of Trust on its part to be performed and is not in default in the performance or observance of any of the terms, covenants, provisions or conditions hereof or thereof, or if the Borrower shall be in default then such certificate shall specify all such defaults and the nature thereof. All affordability restrictions required under the Regulatory Agreement shall be subject to review by the Oversight Agent and the Authority. (e) The Borrower agrees that Bond holders, upon written request, may request and receive information on the Project and the Borrower, including audited financial statements, from the Oversight Agent.

Appears in 1 contract

Samples: Loan Agreement

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Books and Records; Annual Budget; Project Manager. (a) The Borrower hereby covenants to grant the Authority, the Oversight Agent and the Trustee (who shall have no duty to audit or inspect), or their duly authorized representatives, access to the books and records of the Borrower pertaining to the Loan and the Project during normal business hours and upon prior notice, and to make such books and records available for audit and inspection to the Authority, the Oversight Agent, the Trustee and their duly authorized representatives at reasonable times and under reasonable conditions. (b) At least 60 days prior to the beginning of each fiscal year of the Borrower, beginning with the fiscal year ending June 30, 20172020, the Borrower shall prepare an annual budget and submit such budget for approval by the Authority and the Oversight Agent. Such annual budget shall provide for Net Operating Revenues, including projected interest income on the Debt Service Reserve Fund, at least equal to (i) [1.30] 1.30 times scheduled debt service on the Bonds in such fiscal year, (ii) [1.00] 1.00 times the sum of (A) the aggregate scheduled debt service on the Bonds in such fiscal year, and (B) the annual fees of the Trustee and the Oversight Agent for such fiscal year, (iii) amounts necessary to replenish the amount on deposit in the Repair and Replacement Fund to the amount required by Section 5.7(g) of the Indenture, (iv) amounts necessary to replenish any withdrawal from the Debt Service Reserve Fund, and (v) an amount sufficient to pay the Authority Annual Fee and the fees and expenses of the Fiduciaries. Within 20 days of receiving such annual budget, the Authority, and the Oversight Agent shall provide comments (not inconsistent with the requirements of this Agreement and the Regulatory Agreement), if any (including any suggested changes acceptable to the Oversight Agent), in writing to the Borrower. The Borrower shall attempt in good faith to address comments and concerns of the Authority in its final budget. The Borrower shall prepare a revised annual budget and provide such revised budget to the Authority and the Oversight Agent for their review and comment. The Borrower shall provide a copy of the final annual budget to the Authority and the Oversight Agent prior to the beginning of the Borrower’s fiscal year. In the event the annual budget as adopted does not provide for the coverage set forth in the second sentence of this paragraph (b), then in the case of a failure to meet the coverage requirement set forth in subsection (i) of said sentence, the Owners of a majority in Outstanding Principal Amount of the Bonds each shall have the right, in addition to all other rights provided under this Loan Agreement and the Indenture, to direct the Borrower to remove the Project Manager and appoint a Project Manager acceptable to the Authority and such Owners. (c) Within 20 days after the last day of each quarter, the Borrower shall prepare a statement for the immediately preceding quarter for review by the Authority and the Oversight Agent, which shall include statement of income, balance sheet, cashflow, budget variances, occupancy rates, rental activity and rental rates for the Project. (d) Within 60 days after the last day of each fiscal year of the Borrower, the Borrower shall provide a certificate to the Authority and the Oversight Agent that the Borrower has made a review of its activities during the preceding fiscal year for the purpose of determining whether or not the Borrower has complied with all of the terms, provisions and conditions of this Agreement, the Regulatory Agreement and the Deed of Trust and shall certify that the Borrower has kept, observed, performed and fulfilled each and every covenant, provision and condition of this Agreement, the Regulatory Agreement and the Deed of Trust on its part to be performed and is not in default in the performance or observance of any of the terms, covenants, provisions or conditions hereof or thereof, or if the Borrower shall be in default then such certificate shall specify all such defaults and the nature thereof. All affordability restrictions required under the Regulatory Agreement shall be subject to review by the Oversight Agent and the Authority. (e) The Borrower agrees that Bond holders, upon written request, may request and receive information on the Project and the Borrower, including audited financial statements, from the Oversight Agent.

Appears in 1 contract

Samples: Loan Agreement

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Books and Records; Annual Budget; Project Manager. (a) The Borrower hereby covenants to grant permit the Authority, the Oversight Agent Agent, the Program Administrator and the Trustee (who shall have no duty to audit or inspect), or their duly authorized representatives, access to the books and records of the Borrower pertaining to the Loan and the Project during normal business hours and upon prior notice, and to make such books and records available for audit and inspection to the Authority, the Oversight Agent, the Trustee and their duly authorized representatives at reasonable times and under reasonable conditions. (b) At Prior to the delivery date and at least 60 days prior to the beginning of each fiscal year of the Borrower, beginning with the fiscal year ending June 30, 2017, the Borrower shall prepare an annual budget and submit such budget for approval by the Authority and the Oversight Agent. Such annual budget shall provide for Net Operating Revenues, including projected interest income on the Senior Bonds Debt Service Reserve Fund, at least equal to (i) [1.30] 1.30 times scheduled debt service on the Senior Bonds in such fiscal year, (ii) [1.00] 1.00 times the sum of (A) the aggregate scheduled debt service on the Senior Bonds and the Series C Bonds in such fiscal year, and (B) the annual fees of the Trustee and the Oversight Agent for such fiscal year, (iii) amounts necessary to replenish the amount on deposit in the Repair and Replacement Fund to the amount required by Section 5.7(g5.7(h) of the Indenture, (iv) amounts necessary to replenish any withdrawal from the Senior Bonds Debt Service Reserve Fund, and (v) an amount sufficient to pay the Authority Annual Fee and the fees and expenses of the Fiduciaries. Within 20 days of receiving such annual budget, the Authority, and the Oversight Agent shall provide comments (not inconsistent with the requirements of this Agreement and the Regulatory Agreement), if any (including any suggested changes acceptable to the Oversight Agent), in writing to the Borrower. The Borrower shall attempt in good faith to address comments and concerns of the Authority in its final budget. The Borrower shall prepare a revised annual budget and provide such revised budget to the Authority and the Oversight Agent for their review and comment. The Borrower shall provide a copy of the final annual budget to the Authority and the Oversight Agent prior to the beginning of the Borrower’s fiscal year. In the event the annual budget as adopted does not provide for the coverage set forth in the second sentence of this paragraph (b), then in the case of a failure to meet the coverage requirement set forth in subsection (i) of said sentence, the Owners of a majority in Outstanding Principal Amount of the Senior Bonds each shall have the right, in addition to all other rights provided under this Loan Agreement and the Indenture, to direct the Borrower to remove the Project Manager and appoint a Project Manager acceptable to the Authority and such Owners. (c) Within 20 days after the last day of each quarter, the Borrower shall prepare a statement for the immediately preceding quarter for review by the Authority and the Oversight Agent, which shall include statement of income, balance sheet, cashflow, budget variances, occupancy rates, rental activity and rental rates for the Project. (d) Within 60 days after the last day of each fiscal year of the Borrower, the Borrower shall provide a certificate to the Authority and the Oversight Agent that the Borrower has made a review of its activities during the preceding fiscal year for the purpose of determining whether or not the Borrower has complied with all of the terms, provisions and conditions of this Agreement, the Regulatory Agreement and the Deed of Trust and shall certify that the Borrower has kept, observed, performed and fulfilled each and every covenant, provision and condition of this Agreement, the Regulatory Agreement and the Deed of Trust on its part to be performed and is not in default in the performance or observance of any of the terms, covenants, provisions or conditions hereof or thereof, or if the Borrower shall be in default then such certificate shall specify all such defaults and the nature thereof. All affordability restrictions required under the Regulatory Agreement shall be subject to review by the Oversight Agent and the Authority. (e) The Borrower agrees that Bond holders, upon written request, may request and receive information on the Project and the Borrower, including audited financial statements, from the Oversight Agent.

Appears in 1 contract

Samples: Loan Agreement

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