Common use of Debt Service Reserve Clause in Contracts

Debt Service Reserve. On the Closing Date, Prior Owner deposited with Lender the amount of $2,000,000.00, which amount so deposited with Lender, together with any additional deposits with Lender pursuant to Section 2.5.2(b)(vi)(A) hereof, shall be held by Lender in accordance with Section 7.5 hereof. As of the Assumption Date, the amount held in the Debt Service Reserve Fund is $1,203,091.30. Amounts so deposited shall hereinafter be referred to as Borrower’s “Debt Service Reserve Fund” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “Debt Service Reserve Account”. Provided no Event of Default exists and is continuing, in the event on any Payment Date the funds available in the Cash Management Account for application on such Payment Date pursuant to Section 2.5.2(b)(ii) are not sufficient to fund the Monthly Debt Service Amount on such Payment Date in full (the amount of insufficiency being herein referred to as the “Payment Date Deficiency” for such Payment Date), then to the extent of funds available in the Debt Service Reserve Account, Lender shall authorize the transfer on such Payment Date from the Debt Service Reserve Account to the Cash Management Account, for application on such Payment Date pursuant to Section 2.5.2(b)(ii) to satisfy the Payment Date Deficiency. To the extent sufficient amounts are available in the Debt Service Reserve Account in accordance with this Section 7.4.3 and Lender is required hereunder to so authorize a transfer on such Payment Date of funds from the Debt Service Reserve Account to the Cash Management Account to satisfy the Payment Date Deficiency but Lender fails to so authorize the same, it shall not be a default or an Event of Default if such Payment Date Deficiency is not paid due to such failure by Lender and, accordingly, no late charges or default interest shall be payable by Borrower. When the Property shall have achieved the Debt Service Coverage Ratio Threshold, then provided no Event of Default exists and is continuing, the balance of the Debt Service Reserve Fund shall be disbursed to Borrower. The Debt Service Coverage Ratio shall be determined as of the end of each calendar quarter upon receipt by Lender from Borrower of such information and documentation concerning operating results at the Property as Lender may reasonably require to determine the same.

Debt Service Reserve. On the Closing Date, Prior Owner deposited Borrower shall deposit with Lender the an amount of equal to Five Million Two Hundred Fifty Thousand Dollars ($2,000,000.005,250,000) (said amount, which amount so deposited with Lender, together with any additional deposits with Lender pursuant to Section 2.5.2(b)(vi)(A) hereof, shall be held by Lender in accordance with Section 7.5 hereof. As of the Assumption Datehereinafter, the amount held in the Debt Service Reserve Fund is $1,203,091.30. Amounts so deposited shall hereinafter be referred to as Borrower’s “Debt Service Reserve Fund,” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s amount is held, hereinafter, the “Debt Service Reserve Account”) for the purpose of funding an escrow fund for the payment of Debt Service and any other amounts due under this Agreement and the other Loan Documents. Provided no Event of Default exists and is continuing, in the event on any On each Payment Date occurring on and after the funds available first (1st) anniversary of the first (1st) Payment Date, Lender shall apply the Debt Service Reserve Fund in an amount equal to the Monthly Debt Service Payment Amount, which amount shall be deposited into the Cash Management Account for application on such Payment Date pursuant to Section 2.5.2(b)(ii) are not sufficient to fund the Monthly Debt Service Amount on such Payment Date disbursement in full (the amount accordance therewith, provided that, as of insufficiency being herein referred to as the “Payment Date Deficiency” for each such Payment Date), then to the extent of funds available in the Debt Service Reserve Account, Lender Coverage Ratio for the Properties for the immediately preceding twelve (12) month period shall authorize the transfer on such Payment Date from the Debt Service Reserve Account be equal to the Cash Management Account, for application on such Payment Date pursuant or greater than 1.65 to Section 2.5.2(b)(ii) to satisfy the Payment Date Deficiency1.0. To the extent sufficient amounts are available The insufficiency of any balance in the Debt Service Reserve Account shall not relieve Borrower from its obligation to pay Debt Service and any other amounts as required under this Agreement and the other Loan Documents. In lieu of making the deposit (or any portion thereof) to the Debt Service Reserve Account required pursuant to this Section 7.5, Borrower may deliver to Lender an irrevocable letter of credit (payable on sight draft only) in an amount equal to the amount that is otherwise required to be deposited into the Debt Service Reserve Account issued by a domestic financial institution having a rating by S&P and Fitch of not less than “AA” and “Aa2” by Xxxxx’x if the term of such letter of credit is no longer than three (3) months or, if such term is in excess of three (3) months, issued by a financial institution having a rating that the Rating Agencies have confirmed in writing will not, in and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, the highest then current ratings assigned in connection with any Securitization, which letter of credit shall be otherwise acceptable in form and substance to Lender and Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket costs and expenses in connection therewith, including any fee charged by the Rating Agencies. Prior to the return of any such letter of credit, Borrower shall deposit with Lender an amount equal to the amount that would have accumulated in the Debt Service Reserve Account and not been disbursed in accordance with this Section 7.4.3 and 7.5 if the letter of credit had not been delivered. Any such letter of credit shall be additional security for Borrower’s obligations under the Loan Documents. Lender shall have the right to draw in full upon any letter of credit: (i) if Lender has not received at least fifteen (15) Business Days prior to the date on which the then outstanding letter of credit is required hereunder scheduled to so authorize expire, a transfer on such Payment Date of funds notice from the Debt Service Reserve Account issuing financial institution that it has renewed the applicable letter of credit; (ii) upon receipt of notice from the issuing financial institution that the applicable letter of credit will be terminated; (iii) ten (10) days after Lender has given notice to Borrower that the Cash Management Account financial institution issuing the applicable letter of credit ceases to satisfy meet the Payment Date Deficiency but Lender fails to so authorize rating requirement set forth in this Section 7.5; and (iv) upon the same, it shall not be a default or occurrence of an Event of Default if such Payment Date Deficiency is not paid due to such failure by Lender and, accordingly, no late charges or default interest shall be payable by Borrower. When the Property shall have achieved the Debt Service Coverage Ratio Threshold, then provided no Event of Default exists and is continuing, the balance of the Debt Service Reserve Fund shall be disbursed to Borrower. The Debt Service Coverage Ratio shall be determined as of the end of each calendar quarter upon receipt by Lender from Borrower of such information and documentation concerning operating results at the Property as Lender may reasonably require to determine the sameDefault.

Debt Service Reserve. On (a) The HoldCo Borrower agrees that all amounts deposited into the Closing Date, Prior Owner deposited with Lender the amount of $2,000,000.00, which amount so deposited with Lender, together with any additional deposits with Lender pursuant Debt Service Account from time to Section 2.5.2(b)(vi)(A) hereof, time shall be held by Lender applied in accordance with Section 7.5 hereof. As 3.05 of the Assumption DateSecurity Agreement. If on the last day of any calendar quarter or upon the occurrence of any Business Interruption Period, the amount held in the Debt Service Reserve Fund Account is $1,203,091.30. Amounts so deposited shall hereinafter be referred to as Borrower’s “less than the Debt Service Reserve Fund” and Amount at such time (including as a result of a Business Interruption Period), the account HoldCo Borrower shall promptly cause amounts to be transferred into the Debt Service Account to the extent required so that the amount in which such amounts are held shall hereinafter be referred the Debt Service Account is at least equal to as Borrower’s “the Debt Service Reserve Account”Amount. Provided In the event that the HoldCo Borrower fails to so deposit any such amounts, subject to Section 3.04(d) of the Security Agreement and to the terms of the NBA Consent Letter in each event, any or all amounts deposited into the Distribution Account shall be transferred into the Debt Service Account to the extent required so that the amount in the Debt Service Account is equal to at least the Debt Service Reserve Amount. At the HoldCo Borrower’s request, the Agent shall release to the HoldCo Borrower amounts from the Debt Service Account to the extent of any excess above the Debt Service Reserve Amount at such time, provided that no Event of Default exists and is continuing, in the event on any Payment Date the funds available in the Cash Management Account for application on such Payment Date pursuant to Section 2.5.2(b)(ii) are not sufficient to fund the Monthly Debt Service Amount on such Payment Date in full (the amount of insufficiency being herein referred to as the “Payment Date Deficiency” for such Payment Date), then to the extent of funds available . Any amounts remaining in the Debt Service Reserve AccountAccount on the earlier of the Maturity Date and the date that all of the Commitments are terminated, Lender other than any such amounts required to be utilized for the payment of principal or interest on Loans or other amounts then due and payable hereunder by the HoldCo Borrower, shall authorize the transfer on such Payment Date from the Debt Service Reserve Account be released to the Cash Management AccountHoldCo Borrower, for application on such Payment Date pursuant to Section 2.5.2(b)(ii) to satisfy the Payment Date Deficiency. To the extent sufficient amounts are available in the Debt Service Reserve Account in accordance with this Section 7.4.3 and Lender is required hereunder to so authorize a transfer on such Payment Date of funds from the Debt Service Reserve Account to the Cash Management Account to satisfy the Payment Date Deficiency but Lender fails to so authorize the same, it shall not be a default or an Event of Default if such Payment Date Deficiency is not paid due to such failure by Lender and, accordingly, no late charges or default interest shall be payable by Borrower. When the Property shall have achieved the Debt Service Coverage Ratio Threshold, then provided that no Event of Default exists and is continuing, the balance of the Debt Service Reserve Fund shall be disbursed to Borrower. The Debt Service Coverage Ratio shall be determined as of the end of each calendar quarter upon receipt by Lender from Borrower of such information and documentation concerning operating results at the Property as Lender may reasonably require to determine the same.

Debt Service Reserve. On the Closing Date, Prior Owner deposited Borrower shall deposit with Lender the an amount of equal to Five Million Two Hundred Fifty Thousand Dollars ($2,000,000.005,250,000) (said amount, which amount so deposited with Lender, together with any additional deposits with Lender pursuant to Section 2.5.2(b)(vi)(A) hereof, shall be held by Lender in accordance with Section 7.5 hereof. As of the Assumption Datehereinafter, the amount held in the Debt Service Reserve Fund is $1,203,091.30. Amounts so deposited shall hereinafter be referred to as Borrower’s “Debt Service Reserve Fund,” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s amount is held, hereinafter, the “Debt Service Reserve Account”) for the purpose of funding an escrow fund for the payment of Debt Service and any other amounts due under this Agreement and the other Loan Documents. Provided no Event of Default exists and is continuing, in the event on any On each Payment Date occurring on and after the funds available first (1st) anniversary of the first (1st) Payment Date, Lender shall apply the Debt Service Reserve Fund in an amount equal to the Monthly Debt Service Payment Amount, which amount shall be deposited into the Cash Management Account for application on such Payment Date pursuant to Section 2.5.2(b)(ii) are not sufficient to fund the Monthly Debt Service Amount on such Payment Date disbursement in full (the amount accordance therewith, provided that, as of insufficiency being herein referred to as the “Payment Date Deficiency” for each such Payment Date), then to the extent of funds available in the Debt Service Reserve Account, Lender Coverage Ratio for the Properties for the immediately preceding twelve (12) month period shall authorize the transfer on such Payment Date from the Debt Service Reserve Account be equal to the Cash Management Account, for application on such Payment Date pursuant or greater than 1.65 to Section 2.5.2(b)(ii) to satisfy the Payment Date Deficiency1.0. To the extent sufficient amounts are available The insufficiency of any balance in the Debt Service Reserve Account shall not relieve Borrower from its obligation to pay Debt Service and any other amounts as required under this Agreement and the other Loan Documents. In lieu of making the deposit (or any portion thereof) to the Debt Service Reserve Account required pursuant to this Section 7.5.1, Borrower may deliver to Lender an irrevocable letter of credit (payable on sight draft only) in an amount equal to the amount that is otherwise required to be deposited into the Debt Service Reserve Account issued by a domestic financial institution having a rating by S&P and Fitch of not less than “AA” and “Aa2” by Xxxxx’x if the term of such letter of credit is no longer than three (3) months or, if such term is in excess of three (3) months, issued by a financial institution having a rating that the Rating Agencies have confirmed in writing will not, in and of itself, result in a downgrade, withdrawal or qualification of the initial, or, if higher, the highest then current ratings assigned in connection with any Securitization, which letter of credit shall be otherwise acceptable in form and substance to Lender and Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket costs and expenses in connection therewith, including any fee charged by the Rating Agencies. Prior to the return of any such letter of credit, Borrower shall deposit with Lender an amount equal to the amount that would have accumulated in the Debt Service Reserve Account and not been disbursed in accordance with this Section 7.4.3 and 7.5.1 if the letter of credit had not been delivered. Any such letter of credit shall be additional security for Borrower’s obligations under the Loan Documents. Lender shall have the right to draw in full upon any letter of credit: (i) if Lender has not received at least fifteen (15) Business Days prior to the date on which the then outstanding letter of credit is required hereunder scheduled to so authorize expire, a transfer on such Payment Date of funds notice from the Debt Service Reserve Account issuing financial institution that it has renewed the applicable letter of credit; (ii) upon receipt of notice from the issuing financial institution that the applicable letter of credit will be terminated; (iii) ten (10) days after Lender has given notice to Borrower that the Cash Management Account financial institution issuing the applicable letter of credit ceases to satisfy meet the Payment Date Deficiency but Lender fails to so authorize rating requirement set forth in this Section 7.5.1; and (iv) upon the same, it shall not be a default or occurrence of an Event of Default if such Payment Date Deficiency is not paid due to such failure by Lender and, accordingly, no late charges or default interest shall be payable by Borrower. When the Property shall have achieved the Debt Service Coverage Ratio Threshold, then provided no Event of Default exists and is continuing, the balance of the Debt Service Reserve Fund shall be disbursed to Borrower. The Debt Service Coverage Ratio shall be determined as of the end of each calendar quarter upon receipt by Lender from Borrower of such information and documentation concerning operating results at the Property as Lender may reasonably require to determine the sameDefault.