Common use of Building Condition Assessment and Reserve Fund Clause in Contracts

Building Condition Assessment and Reserve Fund. (1) Prior to the Commencement Date, the Landlord shall conduct or cause to be conducted a BCA of the Demised Premises and thereafter the Tenant shall conduct or cause to be conducted an update of the BCA of the Demised Premises no later than five (5) years after the date of the previous BCA. Each BCA shall be conducted in accordance with the Landlord's standards, provided to the Landlord in a prompt and timely manner upon receipt by the Tenant, and subject to the approval of the Deputy City Manager acting reasonably. (2) The Tenant shall deposit in a trust account at a Canadian chartered Bank (the “Reserve Fund Account”) an amount equal to five per cent (5%) of the aggregate annual effective gross income (including all subsidies) from the Demised Premises, including any rent supplement income and affordability payments from the Province of Ontario, the City of Toronto or any other municipality (the “Reserve Fund”) to be deposited monthly in estimated amounts, adjusted within 60 days of the end of each Lease Year to reflect actual effective gross income from the Leased Premises for the preceding fiscal year (the "Reserve Fund Deposit"). The Landlord reserves the right, acting reasonably, to review the amount of the Reserve Fund Deposit with each BCA conducted and to require the Tenant to increase the amount of the Reserve Fund Deposit where the Landlord has determined in its sole discretion that the amount of the Reserve Fund Deposit is not sufficient to establish at the end of each Lease Year the annual amount required in the most recent BCA. r. (3) The Tenant may, with the prior written approval of the Landlord, withdraw amounts from the Reserve Fund Account to fund Work (excluding routine, scheduled or preventative maintenance) in order to maintain the same in the condition required to be maintained hereunder or under the BCA. Such approval shall not be unreasonably withheld, provided the Tenant shall comply with Section 6.5, Section 6.6 and Section 6.8 hereof in connection with all such Work. (4) Prior to the Commencement Date, the Tenant shall provide the Landlord with evidence the Reserve Fund Account has been established in the name of the Landlord in trust for the Tenant. (5) In the event the Tenant fails to do any Required Work in accordance with Section 6.9 hereof, the Landlord shall be entitled to deduct the amounts from the Reserve Fund to conduct such Required Work including an administration fee of fifteen (15%) per cent. (6) The Tenant hereby grants to the Landlord a security interest in and lien upon, and pledges to the Landlord, all amounts in the Reserve Fund Account and all amounts at any time in or attributable to such account or successor accounts, as security for all existing and hereafter arising obligations, liabilities and indebtedness of the Tenant to the Landlord. The Landlord shall take whatever action it considers appropriate and necessary, relying upon an opinion of counsel, to protect and enforce its rights respecting the Reserve Fund Account, including completion and registration of any documents or financing statements at the expense of the Tenant in order to perfect any security interests in the Reserve Fund Account.

Building Condition Assessment and Reserve Fund. (1) Prior to Within the first six (6) months after the Commencement Date, the Landlord shall conduct or cause to be conducted a BCA of the Demised Premises for the purpose of setting up a capital repair and thereafter maintenance plan. Thereafter the Tenant shall conduct or cause to be conducted an update of the BCA of the Demised Premises no later than five (5) years after the date of the previous BCA. Each BCA shall be conducted in accordance with the Landlord's standards, provided to the Landlord in a prompt and timely manner upon receipt by the Tenant, and subject to the approval of the Deputy City Manager acting reasonably. (2) The Tenant shall deposit in a trust account at a Canadian chartered Bank (the “Reserve Fund Account”) an a minimum amount equal to of five per cent (5%) of the aggregate annual effective gross income (including all subsidies) from the Demised Premises, including any rent supplement income and affordability payments from the Province of Ontario, the City of Toronto or any other municipality (the “Reserve Fund”) to be deposited monthly in estimated amounts, adjusted within 60 days of the end of each Lease Sublease Year to reflect actual effective gross income from the Leased Subleased Premises for the preceding fiscal year (the "Reserve Fund Deposit"). The Landlord reserves the right, acting reasonably, to review the amount of the Reserve Fund Deposit with each BCA conducted and to require the Tenant to increase the amount of the Reserve Fund Deposit where the Landlord has determined in its sole discretion that the amount of the Reserve Fund Deposit is not sufficient to establish at the end of each Lease Sublease Year the annual amount required in the most recent BCA. r.. (3) The Tenant may, with the prior written approval of the Landlord, withdraw amounts from the Reserve Fund Account to fund Work (excluding routine, scheduled or preventative maintenance) in order to maintain the same in the condition required to be maintained hereunder or under the BCA. Such approval shall not be unreasonably withheld, provided the Tenant shall comply with Section 6.5, Section 6.6 and Section 6.8 hereof in connection with all such Work. (4) Prior to the Commencement Date, the Tenant shall provide the Landlord with evidence the Reserve Fund Account has been established in the name of the Landlord in trust for the Tenant. (5) In the event the Tenant fails to do any Required Work in accordance with Section 6.9 hereof, the Landlord shall be entitled to deduct the amounts from the Reserve Fund to conduct such Required Work including an administration fee of fifteen (15%) per cent. (65) The Tenant hereby grants to the Landlord a security interest in and lien upon, and pledges to the Landlord, all amounts in the Reserve Fund Account and all amounts at any time in or attributable to such account or successor accounts, as security for all existing and hereafter arising obligations, liabilities and indebtedness of the Tenant to the Landlord. The Landlord shall take whatever action it considers appropriate and necessary, relying upon an opinion of counsel, to protect and enforce its rights respecting the Reserve Fund Account, including completion and registration of any documents or financing statements at the expense of the Tenant in order to perfect any security interests in the Reserve Fund Account.

Building Condition Assessment and Reserve Fund. (1) Prior to the Commencement Date, the Landlord The Tenant shall conduct or cause to be conducted a BCA of the Demised Premises no later than five (5) years after the Commencement Date, and thereafter thereafter, the Tenant shall conduct or cause to be conducted an update of the a BCA of the Demised Premises no later than five (5) years after the date of the previous BCA. Each BCA shall be conducted in accordance with the Landlord's standards, provided to the Landlord in a prompt and timely manner upon receipt by the Tenant, and subject to the approval of the Deputy City Manager acting reasonably. (2) The Tenant shall deposit in a trust account at a Canadian chartered Bank (the “Reserve Fund Account”) an amount equal to five per cent (5%) of the aggregate annual effective gross income (including all subsidies) from the Demised Premises, including any rent supplement income and affordability payments from the Province of Ontario, the City of Toronto or any other municipality (the “Reserve Fund”) to be deposited monthly in estimated amounts, adjusted within 60 days of the end of each Lease Year to reflect actual effective gross income from the Leased Premises for the preceding fiscal year (the "Reserve Fund Deposit"). The Landlord reserves the right, acting reasonably, to review the amount of the Reserve Fund Deposit with each BCA conducted and to require the Tenant to increase the amount of the Reserve Fund Deposit where the Landlord has determined in its sole discretion that the amount of the Reserve Fund Deposit is not sufficient to establish at the end of each Lease Year the annual amount required in the most recent BCA. r.. (3) The Tenant may, with the prior written approval of the Landlord, withdraw amounts from the Reserve Fund Account to fund Work (excluding routine, scheduled or preventative maintenance) in order to maintain the same in the condition required to be maintained hereunder or under the BCA. Such approval shall not be unreasonably withheld, provided the Tenant shall comply with Section 6.5, Section 6.6 and Section 6.8 hereof in connection with all such Work. (4) Prior to the Commencement Date, the Tenant shall provide the Landlord with evidence the Reserve Fund Account has been established in the name of the Landlord in trust for the Tenant. (5) In the event the Tenant fails to do any Required Work in accordance with Section 6.9 hereof, the Landlord shall be entitled to deduct the amounts from the Reserve Fund to conduct such Required Work including an administration fee of fifteen (15%) per cent. (6) The Tenant hereby grants to the Landlord a security interest in and lien upon, and pledges to the Landlord, all amounts in the Reserve Fund Account and all amounts at any time in or attributable to such account or successor accounts, as security for all existing and hereafter arising obligations, liabilities and indebtedness of the Tenant to the Landlord. The Landlord shall take whatever action it considers appropriate and necessary, relying upon an opinion of counsel, to protect and enforce its rights respecting the Reserve Fund Account, including completion and registration of any documents or financing statements at the expense of the Tenant in order to perfect any security interests in the Reserve Fund Account.

Building Condition Assessment and Reserve Fund. (1) Prior to the Commencement Date, the Landlord shall conduct or cause to be conducted a BCA of the Demised Premises and thereafter the Tenant shall conduct or cause to be conducted an update of the BCA of the Demised Premises no later than five (5) years after the date of the previous BCA. Each BCA shall be conducted in accordance with the Landlord's standards, provided to the Landlord in a prompt and timely manner upon receipt by the Tenant, and subject to the approval of the Deputy City Manager acting reasonably. (2) The Tenant shall deposit in a trust account at a Canadian chartered Bank (the “Reserve Fund Account”) an amount equal to five per cent (5%) of the aggregate annual effective gross income (including all subsidies) from the Demised Premises, including any rent supplement income and affordability payments from the Province of Ontario, the City of Toronto or any other municipality (the “Reserve Fund”) to be deposited monthly in estimated amounts, adjusted within 60 days of the end of each Lease Year to reflect actual effective gross income from the Leased Premises for the preceding fiscal year (the "Reserve Fund Deposit"). The Landlord reserves the right, acting reasonably, to review the amount of the Reserve Fund Deposit with each BCA conducted and to require the Tenant to increase the amount of the Reserve Fund Deposit where the Landlord has determined in its sole discretion that the amount of the Reserve Fund Deposit is not sufficient to establish at the end of each Lease Year the annual amount required in the most recent BCA. r.. (3) The Tenant may, with the prior written approval of the Landlord, withdraw amounts from the Reserve Fund Account to fund Work (excluding routine, scheduled or preventative maintenance) in order to maintain the same in the condition required to be maintained hereunder or under the BCA. Such approval shall not be unreasonably withheld, provided the Tenant shall comply with Section 6.5, Section 6.6 and Section 6.8 hereof in connection with all such Work. (4) Prior to the Commencement Date, the Tenant shall provide the Landlord with evidence the Reserve Fund Account has been established in the name of the Landlord in trust for the Tenant. (5) In the event the Tenant fails to do any Required Work in accordance with Section 6.9 hereof, the Landlord shall be entitled to deduct the amounts from the Reserve Fund to conduct such Required Work including an administration fee of fifteen (15%) per cent. (6) The Tenant hereby grants to the Landlord a security interest in and lien upon, and pledges to the Landlord, all amounts in the Reserve Fund Account and all amounts at any time in or attributable to such account or successor accounts, as security for all existing and hereafter arising obligations, liabilities and indebtedness of the Tenant to the Landlord. The Landlord shall take whatever action it considers appropriate and necessary, relying upon an opinion of counsel, to protect and enforce its rights respecting the Reserve Fund Account, including completion and registration of any documents or financing statements at the expense of the Tenant in order to perfect any security interests in the Reserve Fund Account.