Capital Expenditure Reserve. To the Contributor's Knowledge, the capital expenditure reserves for the Property held by the Manager as of the end of Marriott's accounting period 8, are accurate and complete as shown on the balance sheet delivered to Acquiror. The Contributor will not authorize or direct the Manager to use or expend the capital expenditure reserve except as set forth on Exhibit F.
Capital Expenditure Reserve. In addition to the capital improvements to be installed pursuant to Sections 11.1 and 11.2, and only when and if the Outstanding CapEx Balance is $0 without regard to reserves maintained under this Section 11.3, Tenant shall maintain an on-going commercially reasonable annual capital expenditure reserve (which may be funded through the ticket surcharge described in Section 4.3(f) and shall be determined in accordance with industry standards), to be used on an as-needed basis for additional facility improvements and capital repairs. Tenant shall have the right to withdraw some or all of the funds in the capital expenditure reserve at any time for capital expenditures, and shall not be required to keep a minimum balance in reserve.
Capital Expenditure Reserve. On the Closing Date, Borrower shall deposit the amount required to be deposited into the Capital Expenditure Reserve Account on the Settlement Statement into the Capital Expenditure Reserve Account and thereafter Borrower shall deposit (or cause to be deposited) with Lender (or such agent of Lender as Lender may designate in writing from time to time) into the Capital Expenditure Reserve Account, monthly, on each Payment Date, an amount equal to $3,000.00 for the purpose of establishing and maintaining a reserve (the “Capital Expenditure Reserve”) for the completion of capital improvement items and for equipment for use at the Mortgaged Property (“Capital Improvements”) which are approved in advance by Lender (“Approved Capital Improvements”). The funds contained in the Capital Expenditure Reserve shall be utilized by Borrower solely for Approved Capital Improvements. So long as no Default or Event of Default exists at the time of any requested distribution of funds from the Capital Expenditure Reserve, Lender shall make funds in the Capital Expenditure Reserve available to Borrower subject to satisfaction of each of the following terms and conditions: (a) all Capital Expenditure Reserve funds released by Lender to Borrower shall be used to pay for or reimburse Borrower for the reasonable expenses actually incurred and paid by Borrower for Approved Capital Improvements; (b) Borrower shall have given Lender a Request for Release satisfactory to Lender; (c) disbursements from the Capital Expenditure Reserve shall not be made more frequently than once per Loan Month; (d) each request for a disbursement shall be in an amount of not less than $10,000.00; and (e) upon request of Lender, Borrower shall also provide Lender with additional evidence satisfactory to Lender that Borrower is the owner or lessee of any capital improvements or equipment for which reimbursement is sought, free of any Liens (other than the first priority security interest in favor of Lender). Lender shall make each disbursement of the Capital Expenditure Reserve funds within fifteen (15) days after satisfaction of all the conditions to that disbursement. If an Event of Default exists, Lender may apply the Capital Expenditure Reserve funds, together with any interest accrued thereon, to Borrower’s Obligations in such order and priority as Lender may determine. Notwithstanding the foregoing, to the extent that in any calendar year Borrower has expended sums on capital improvements and equipm...
Capital Expenditure Reserve. (a) Deposit to Capital Expenditure Reserve Fund. On each Monthly Payment Date during the term of the Loan, Borrower shall deposit (or cause to be deposited) with Depository, into an account in the name of Lender, an amount equal to $22,077.00 (the “Capital Expenditure Reserve Deposit Amount”) until such time as the aggregate amount in the Capital Expenditure Reserve Account exceeds $1,892,656.00 (the “Capital Expenditure Reserve Account Cap”); provided that at all times thereafter that the funds in the Capital Expenditure Reserve Account are less than the Capital Expenditure Reserve Account Cap, Borrower shall resume making deposits into the Capital Expenditure Reserve Account on each Monthly Payment Date in an amount equal to the Capital Expenditure Reserve Deposit Amount until the funds in the Capital Expenditure Reserve Account exceed the Capital Expenditure Reserve Account Cap. Funds in the Capital Expenditure Reserve Account shall be used to pay for or reimburse Borrower for any capital repairs, replacements and improvements necessary to keep the Property in good condition, order and repair and to prevent deterioration of the Property (a “Capital Expenditure Advance”). All such amounts shall be held by Depository in an account until released in accordance with the provisions of clause (b) below (the “Capital Expenditure Reserve Account”). Amounts deposited in the Capital Expenditure Reserve Account pursuant to this Section 5.5 are referred to herein as the “Capital Expenditure Reserve Fund”. Lender may reassess the amount of the Monthly Capital Expenditure Deposit from time to time, and may require Borrower to increase such monthly deposits upon thirty (30) days’ notice to Borrower if Lender determines that an increase is necessary to maintain the proper condition of the Property.
Capital Expenditure Reserve. (a) Landlord shall be obligated to make available to Tenant an amount equal to 5% of Room Revenues from the Facility during each Lease Year ("Capital Expenditures Reserve"). Upon written request by Tenant to Landlord stating the specific use to be made and subject to the approval thereof by Landlord, which approval shall not be unreasonably withheld, such funds shall be made available by Landlord for Capital Expenditures set forth in the Capital Budget; provided, however, that no Capital Expenditures shall be made to purchase property (other than "real property" within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause the Landlord to recognize income other than "rents from real property" as defined in Section 856(d) of the Code. Landlord's obligation shall be cumulative, but not compounded, and any amounts that have accrued hereunder shall be payable in future periods for such uses and in accordance with the procedure set forth herein. Tenant shall have no interest in any accrued obligation of Landlord hereunder after the termination of this Lease. All Capital Improvements shall be owned by Landlord subject to the provisions of this Lease.
(b) Landlord's obligation with respect to Capital Expenditures shall be limited to amounts available in the Capital Expenditures Reserve. No arbitration resulting from the failure of Landlord and Tenant to agree on the Capital Budget shall increase Landlord's obligation for Capital Expenditures beyond the amount set forth in the immediately preceding sentence.
Capital Expenditure Reserve. Anything in the second sentence of Section 10.8 to the contrary notwithstanding, upon any sale of a Hotel, 100% of the combined Capital Expenditure Reserve Account and the FF&E Reserve Account (collectively, the "RESERVES") for such Hotel shall be applied to such accounts for the remaining Hotels in such amounts as determined by Lessor in its reasonable discretion after taking into account the planned timing of remaining Hotel sales and the relative investment in each Hotel necessary to derive the greatest sales value; provided, however, that until the breakfast rooms for the Rochelle Hotel, the Wooster North Hotel and the Grand Rapids Xxxxx Xotel are completed, the Reserves (inclusive of the Port Huron Reserves) shall be applied to the costs of completing these breakfast rooms. Lessee will use its reasonable efforts to utilize the Reserves for the Hotels prior to the sale of the Hotels for the purposes set forth in the Property Leases and as necessary to maintain the Hotels as required under the Property Leases. Any Reserves remaining at the time the last Hotel is sold will be applied to reduce the Proceeds Deficit, and if no Proceeds Deficit exists, released to Arlington.
Capital Expenditure Reserve. (a) Lessee shall establish and fund from Gross Revenues, in respect of each Fiscal Year during the Term of this Lease, a reserve account on the Leased Property’s books of account (the “CAPITAL EXPENDITURE RESERVE”) to cover the cost of Capital Expenditures (which cost shall be paid by the Lessor); provided, however, that no Capital Expenditures shall be made to purchase property (other than “real property” within the meaning of Treasury Regulations Section 1.856-3(d)), to the extent that doing so would cause the Lessor to recognize income other than “rents from real property” as defined in Section 856(d) of the Code. All Capital Improvements shall be owned by Lessor subject to the provisions of this Lease.
(b) For each Fiscal Year, the Capital Expenditure Reserve shall be an amount equal to the greater of (1) the amount required to be reserved under the Franchise Agreement; or (2) four percent (4%) of the Gross Revenues, or (3) in such other amount as determined by Lessor.
(c) All Capital Expenditures whether pursuant to the Capital Budget or otherwise for material structural components of the Facility involving expenditures of $100,000.00 or more, shall be subject to the approval of Lessor, which approval shall extend both to the plans and specifications (including matters of design and decor) and to the contracting and purchasing of all labor, services and materials. Lessor shall have the right to require competitive bidding of contracts for such Capital Improvements, review all bids and monitor costs, time, quality and performance. Except as set forth in SECTION 9.1(b) of this Lease, all Capital Expenditures shall be made by Lessor.
Capital Expenditure Reserve. Tenant shall deposit with Landlord the sum of Eight Hundred and Ten Thousand and No/100 Dollars ($810,000) (“Minimum Required Reserve Amount”) funded in twelve (12) equal monthly installments commencing on the third anniversary of the Effective Date to be held by Landlord as a Capital Expenditure Reserve (“Reserve Account”). Thereafter Tenant can draw on the Reserve Account to pay capital expenses approved by Landlord, which approval shall not be unreasonably withheld. Tenant shall replenish the Reserve Account within six (6) months of any withdrawal by depositing sufficient funds to achieve the Minimum Required Reserve Amount.
Capital Expenditure Reserve. (a) On the Original Closing Date, the Borrowers deposited with the Administrative Agent the sum of $1,185,962.43 (the “Capital Expenditure Reserve”).
(b) The Borrowers shall deposit with the Administrative Agent (for further deposit into the Capital Expenditure Reserve), not later than the tenth (10th) day of each month, an amount equal to four percent (4.0%) of the sum of the Operating Revenues for each Individual Property during the preceding month, as calculated based on the Monthly Operating Statement for each Individual Property, provided, however, that if any Franchise Agreement requires a Borrower to establish reserves for any Individual Property for capital improvements, FF&E or other purposes in an amount greater than would otherwise be required by the foregoing provision, then such Borrower shall deposit such greater amount into the Capital Expenditure Reserve with respect to such Individual Property. At the option of the Administrative Agent, the Administrative Agent may direct the Borrowers to deposit the required Capital Expenditure Reserve amounts directly into the Capital Expenditure Reserve account and shall notify the Administrative Agent of the date and amount of each such deposit.
Capital Expenditure Reserve. The Lender shall have the right to require a separate Capital Expenditure Reserve in an amount equal to 125% of the cost of the immediate and year-one deferred maintenance items, as identified in the engineering and environmental reports. This reserve shall be determined upon completion of due diligence. On-going Capital Expenditures and replacement reserves, to be funded each month in an amount equal to the greater of 1/12 of$0.30 per square foot per year or as determined in the Engineering Report. The Borrower shall receive interest on all funds in the Capital Expenditure Reserve.
