Common use of Deposits of FF&E Reserve Funds Clause in Contracts

Deposits of FF&E Reserve Funds. (a) Borrower shall deposit or cause to be deposited with or on behalf of Lender on or before each Monthly Payment Date, an amount equal to the greater of (i) four percent (4.0%) of the Adjusted Operating Income for the Properties for the calendar month which is two calendar months prior to the calendar month in which such Monthly Payment Date occurs and (ii) the amounts actually required (and not waived) by a Franchisor pursuant to a Franchise Agreement, for the repair and replacement of FF&E and Routine Capital Expenditures (collectively, the “FF&E Work”), which amounts shall be transferred into an Account established for such purposes (such account, the “FF&E Reserve Account”). Amounts deposited from time to time into the FF&E Reserve Account pursuant to this Section 6.8.1 are referred to herein as the “FF&E Reserve Funds”. (b) Notwithstanding the foregoing, provided that Borrower and Operating Lessee are maintaining the applicable Individual Property in accordance with the requirements of the Management Agreement (as determined by the applicable Manager) and the Loan Documents (as reasonably determined by Lender), to the extent funds for FF&E Work for the applicable Individual Property are reserved for in a Manager-Held Reserve for FF&E Work for such period pursuant to and in accordance with the Management Agreement (and provided that Lender shall have a security interest in such Manager-Held Reserve), then the amount of the monthly deposit into the FF&E Reserve Account shall be reduced on a dollar-for-dollar basis by such amount so reserved.

Deposits of FF&E Reserve Funds. (a) For so long as the Pre-Approved Manager Conditions are satisfied, Borrower shall deposit (or cause Manager to be deposited with or deposit) on behalf of Lender on or before each Monthly Payment Date, Date into the FF&E Deposit Account established at the FF&E Deposit Bank pursuant to the FF&E Deposit Account Control Agreement an amount equal to the greater of (i) four percent (4.0%) of the Adjusted Operating Income Gross Revenue for the Properties Property for the calendar month which is two calendar months prior to the calendar month in which such Monthly Payment Date occurs and month, (ii) the amounts actually then-current amount required by the Management Agreement and (and not waivediii) by a Franchisor pursuant to if at such time as a Franchise AgreementAgreement in effect with respect to the Property, the then-current amount required by such Franchise Agreement for the repair and replacement of the FF&E (such amount, the “Monthly FF&E Reserve Amount”, and Routine Capital Expenditures (collectively, such repair and replacement of FF&E being the “FF&E Work”)) that may be incurred following the date hereof. (b) In the event the Pre-Approved Manager Conditions are not satisfied or at such time as Manager is no longer reserving for FF&E Reserve Funds, which amounts Lender shall be transferred direct Servicer to transfer from the Cash Management Deposit Account (or if there are insufficient funds in the Cash Management Deposit Account, Borrower shall deposit into the Cash Management Deposit Account) on each Monthly Payment Date, the Monthly FF&E Reserve Amount into an Account established for such purposes (such account, the “FF&E Reserve Account”). . (c) Amounts deposited from time to time into the FF&E Deposit Account or FF&E Reserve Account pursuant to this Section 6.8.1 6.5.1 are referred to herein as the “FF&E F&E Reserve Funds”. (b) Notwithstanding the foregoing, provided that Borrower and Operating Lessee are maintaining the applicable Individual Property in accordance with the requirements of the Management Agreement (as determined by the applicable Manager) and the Loan Documents (as reasonably determined by Lender), to the extent funds for FF&E Work for the applicable Individual Property are reserved for in a Manager-Held Reserve for FF&E Work for such period pursuant to and in accordance with the Management Agreement (and provided that Lender shall have a security interest in such Manager-Held Reserve), then the amount of the monthly deposit into the FF&E Reserve Account shall be reduced on a dollar-for-dollar basis by such amount so reserved.