Common use of Distributions of Income to the Borrower Clause in Contracts

Distributions of Income to the Borrower. The Borrower shall cause all of its Subsidiaries to promptly distribute to the Borrower (but not less frequently than once each fiscal quarter of the Borrower), whether in the form of dividends, distributions or otherwise, all profits, proceeds or other income relating to or arising from its Subsidiaries' use, operation, financing, refinancing, sale or other disposition of their respective assets and properties after (a) the payment by each Subsidiary of its Debt Service and operating expenses for such quarter and (b) the establishment of reasonable reserves for the payment of operating expenses not paid on at least a quarterly basis and capital improvements to be made to such Subsidiary's assets and properties approved by such Subsidiary in the ordinary course of business consistent with its past practices. Notwithstanding the foregoing, the Borrower shall enforce its rights at law and in equity to receive distributions from (i) the Residential Corporations at the same time that distributions are made to other shareholders of the Residential Corporations, and (ii) Subsidiaries of the Borrower in which the Borrower owns less than a majority (by number of votes or controlling interests) of the outstanding Voting Interests.