Common use of Capital Reserve Clause in Contracts

Capital Reserve. Commencing upon Substantial Completion of the Project, Tenant will, on the first day of each month during the Term, make monthly deposits to a capital reserve fund (the “Maintenance Capital Reserve”) in an amount equal to $300.00/Residential Unit per annum, escalating each year by the increase in the Consumer Price Index for the year in question. (a) Tenant will utilize the funds in the Maintenance Capital Reserve to cover the costs of repair and maintenance of the Project, including, without limitation, Capital Improvements. (b) Depository will hold the monies deposited into the Maintenance Capital Reserve in an interest-bearing account for the purpose of paying (or reimbursing Tenant for) the maintenance and repair charges of the Project pursuant to a depository agreement reasonably satisfactory to Landlord and Tenant. (c) Any interest paid on monies deposited with the Depository pursuant to this Section