Ffe Reserve Funds. Borrower shall deposit with Lender on the Closing Date one-twelfth of the amount of the Approved FF&E Budget (the “FF&E Reserve Deposit”). The amount of the FF&E Reserve Deposit shall be recalculated annually during the term of the Loan, as of January 1 of each year (or as soon thereafter as Gross Income from Operations for the preceding year shall be determined to Lender’s reasonable satisfaction) such that the FF&E Reserve Deposit shall be equal to four (4%) percent of the prior year’s Gross Income from Operations divided by twelve (12). Amounts so deposited shall hereinafter be referred to as Borrower’s “FF&E Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “FF&E Reserve Account.” Within thirty (30) days following the end of each calendar quarter, Borrower shall provide to Lender a preliminary report with respect to the expenditures made by or on behalf of Borrower with respect to the Property for FF&E during such calendar quarter. In the event that the lesser of (a) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, exceeds the actual expenditures made by Borrower for FF&E for such quarter, Borrower shall deposit an amount equal to any such difference in the FF&E Reserve Account to be held as FF&E Reserve Funds to be disbursed pursuant to the provisions of this Section 7.3. Notwithstanding the foregoing, the amount of any such deposit required to be made by Borrower shall be reduced by the amount of any actual expenditure made by Borrower for any FF&E completed prior to the calendar quarter in which such FF&E was scheduled to be made pursuant to the Approved Annual FF&E Budget. If the actual expenditures made by Borrower for FF&E exceeds the lesser of (x) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, Lender shall reimburse Borrower for such excess to the extent that funds are available from the FF&E Reserve Account within fifteen (15) days from Borrower’s request. To the extent there are not sufficient funds in the FF&E Reserve Account to reimburse Borrower for any excess actual expenditures during such calendar quarter, such excess expenditures shall be added to the actual expenditures for the next calendar quarter in the determination of any amounts required to be deposited in the FF&E Reserve Account for such calendar quarter. In lieu of making any required deposits to the FF&E Reserve Account (other than the FF&E Reserve Deposit), Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the FF&E Reserve Account. Such Letter of Credit shall constitute additional collateral for the Loan and Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof for the purposes set forth in the Approved FF&E Budget if Borrower fails to do so within a reasonable time after notice from Lender, or Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof as otherwise provided in this Agreement following an Event of Default. All earnings or interest on the FF&E Reserve Funds shall be and become part of the FF&E Reserve Funds and shall be disbursed as provided in this Section 7.3.
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Ffe Reserve Funds. Borrower shall deposit with Lender on the Closing Date one-twelfth of the amount of the Approved FF&E Budget (the “FF&E Reserve Deposit”). The amount of the FF&E Reserve Deposit shall be recalculated annually during the term of the Loan, as of January 1 of each year (or as soon thereafter as Gross Income from Operations for the preceding year shall be determined to Lender’s reasonable satisfaction) such that the FF&E Reserve Deposit shall be equal to four (4%) percent of the prior year’s Gross Income from Operations divided by twelve (12). Amounts so deposited shall hereinafter be referred to as Borrower’s “FF&E Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “FF&E Reserve Account.” Within thirty (30) days following the end of each calendar quarter, Borrower shall provide to Lender a preliminary report with respect to the expenditures made by or on behalf of Borrower with respect to the Property for FF&E during such calendar quarter. In the event that the lesser of (a) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, exceeds the actual expenditures made by Borrower for FF&E for such quarter, Borrower shall deposit an amount equal to any such difference in the FF&E Reserve Account to be held as FF&E Reserve Funds to be disbursed pursuant to the provisions of this Section 7.3. Notwithstanding the foregoing, the amount of any such deposit required to be made by Borrower shall be reduced by the amount of any actual expenditure made by Borrower for any FF&E completed prior to the calendar quarter in which such FF&E was scheduled to be made pursuant to the Approved Annual FF&E Budget. If the actual expenditures made by Borrower for FF&E exceeds the lesser of (x) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, Lender shall reimburse Borrower for such excess to the extent that funds are available from the FF&E Reserve Account within fifteen (15) days from Borrower’s request. To the extent there are not sufficient funds in the FF&E Reserve Account to reimburse Borrower for any excess actual expenditures during such calendar quarter, such excess expenditures shall be added to the actual expenditures for the next calendar quarter in the determination of any amounts required to be deposited in the FF&E Reserve Account for such calendar quarter. In lieu of making any required deposits to the FF&E Reserve Account (other than the FF&E Reserve Deposit), Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the FF&E Reserve Account. Such Letter of Credit shall constitute additional collateral for the Loan and Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof for the purposes set forth in the Approved FF&E Budget if Borrower fails to do so within a reasonable time after notice from Lender, or Lender shall have the right to draw down upon may apply such Letter of Credit and apply the proceeds thereof sums as otherwise provided in this Agreement following an Event of Default. All earnings or interest on the FF&E Reserve Funds shall be and become part of the FF&E Reserve Funds and shall be disbursed as provided in this Section 7.3.
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Ffe Reserve Funds. Borrower shall deposit with Lender on the Closing Date one-twelfth of the amount of the Approved FF&E Budget (the “FF&E Reserve Deposit”). The amount of the FF&E Reserve Deposit shall be recalculated annually during the term of the Loan, as of January 1 of each year (or as soon thereafter as Gross Income from Operations for the preceding year shall be determined to Lender’s reasonable satisfaction) such that the FF&E Reserve Deposit shall be equal to four (4%) percent of the prior year’s Gross Income from Operations divided by twelve (12). Amounts so deposited shall hereinafter be referred to as Borrower’s “FF&E Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “FF&E Reserve Account.” Within thirty (30) days following the end of each calendar quarter, Borrower shall provide to Lender a preliminary report with respect to the expenditures made by or on behalf of Borrower with respect to the Property for FF&E during such calendar quarter. In the event that the lesser of (a) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, exceeds the actual expenditures made by Borrower for FF&E for such quarter, Borrower shall deposit an amount equal to any such difference in the FF&E Reserve Account to be held as FF&E Reserve Funds to be disbursed pursuant to the provisions of this Section 7.3. Notwithstanding the foregoing, the amount of any such deposit required to be made by Borrower shall be reduced by the amount of any actual expenditure made by Borrower for any FF&E completed prior to the calendar quarter in which such FF&E was scheduled to be made pursuant to the Approved Annual FF&E Budget. If the actual expenditures made by Borrower for FF&E exceeds the lesser of (x) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, Lender shall reimburse Borrower for such excess to the extent that funds are available from the FF&E Reserve Account within fifteen (15) days from Borrower’s request. To the extent there are not sufficient funds in the FF&E Reserve Account to reimburse Borrower for any excess actual expenditures during such calendar quarter, such excess expenditures shall be added to the actual expenditures for the next calendar quarter in the determination of any amounts required to be deposited in the FF&E Reserve Account for such calendar quarter. In lieu of making any required deposits to the FF&E Reserve Account (other than the FF&E Reserve Deposit), Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the FF&E Reserve Account. Such Letter of Credit shall constitute additional collateral for the Loan and Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof for the purposes set forth in the Approved FF&E Budget if Borrower fails to do so within a reasonable time after notice from Lender, or Lender shall have the right to draw down upon may apply such Letter of Credit and apply the proceeds thereof sums as otherwise provided in this Agreement following an Event of Default. All earnings or interest on the FF&E Reserve Funds shall be and become part of the FF&E Reserve Funds and shall be disbursed as provided in this Section 7.3.
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Ffe Reserve Funds. Borrower On a monthly basis, Borrowers or Operating Lessee shall, or shall cause Manager to, deposit with Lender on into the Closing Date one-twelfth of “FF&E Reserve” under the amount of the Approved FF&E Budget Management Agreement (the “Manager FF&E Reserve DepositReserve”). The amount of ) the FF&E Reserve Deposit shall be recalculated annually during Amount. To the term of extent that the LoanManager FF&E Reserve is not maintained by Manager (or not maintained in the amounts required hereby), as of January 1 on the last Business Day of each year (or as soon thereafter as Gross Income from Operations for month commencing with the preceding year last Business Day of October, 2012, Borrowers shall be determined to Lender’s reasonable satisfaction) such that deposit into the FF&E Reserve Deposit shall be equal to four (4%) percent of Account the prior year’s Gross Income from Operations divided by twelve (12). Amounts so deposited shall hereinafter be referred to as Borrower’s “FF&E Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “FF&E Reserve Account.” Within thirty (30) days following the end of each calendar quarter, Borrower shall provide to Lender a preliminary report Amount with respect to the expenditures made by or second (2nd) immediately preceding calendar month (the amounts on behalf of Borrower with respect to the Property for FF&E during such calendar quarter. In the event that the lesser of (a) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, exceeds the actual expenditures made by Borrower for FF&E for such quarter, Borrower shall deposit an amount equal to any such difference in the FF&E Reserve Account from time to be held as time are hereinafter called the “FF&E Reserve Funds Funds”) and deliver to be disbursed pursuant to the provisions Administrative Agent a certificate setting forth in reasonable detail Borrowers’ calculation of this Section 7.3. Notwithstanding the foregoing, the amount of any such deposit required to be made by Borrower shall be reduced by the amount of any actual expenditure made by Borrower for any FF&E completed prior to the calendar quarter in which such FF&E was scheduled Reserve Amount. From time to time, but not more frequently than once per month, and provided no Default shall have occurred and then be made pursuant continuing and the Indebtedness shall not have been accelerated, Borrowers may submit to the Approved Annual FF&E Budget. If the actual expenditures made by Borrower Administrative Agent a written request for FF&E exceeds the lesser of (x) the Approved Annual FF&E Budget for such calendar quarter (provided such Approved Annual FF&E Budget is not less than four (4%) percent of the Gross Income from Operations for such quarter) or (b) four (4%) percent of the actual Gross Income from Operations for such quarter, Lender shall reimburse Borrower for such excess to the extent that funds are available disbursement from the FF&E Reserve Account within fifteen for FF&E Expenditures approved by Administrative Agent. Each such written request shall (15i) days specify the FF&E Expenditures for which such disbursement is requested and (ii) include a certification from Borrower’s Borrowers that the costs and expenses that are the subject of such request have not been the subject of a prior request. To Borrowers shall promptly deliver to Administrative Agent copies of paid invoices (or unpaid invoices to which the extent there requested disbursement relates and is to be applied) and lien waivers as Administrative Agent may reasonably require in connection with such requested disbursement and the subject matter thereof. Provided that the foregoing conditions are not sufficient satisfied, and all other conditions applicable to the requested disbursement set forth in this Section 1.4.4 are satisfied, Administrative Agent shall disburse FF&E Reserve Funds to Borrowers or Operating Lessee in accordance with Borrowers instructions delivered to Administrative Agent, which funds Borrowers and Operating Lessee shall only use for the purpose of paying for such approved FF&E Expenditures or of reimbursing itself for the prior payment thereof. Except as otherwise provided herein, while any Default is continuing and the Indebtedness shall have been accelerated, Administrative Agent may, but shall have no obligation to, make disbursements of FF&E Reserve Funds. Any amount remaining in the FF&E Reserve Account to reimburse Borrower for any excess actual expenditures during such calendar quarter, such excess expenditures after payment in full of all Obligations in immediately available funds shall be added returned to Borrowers. Borrowers and Operating Lessee shall not withdraw any amount from the Manager FF&E Reserve pursuant to the actual expenditures Management Side Letter except for such amount, if any, that exceeds the next calendar quarter aggregate amount that would have been on deposit in the determination Manager FF&E Reserve as of any amounts the day such withdrawal is made if all FF&E Reserve Amounts required to be herein were deposited in the Manager FF&E Reserve Account for such calendar quarter. In lieu of making any as and when required deposits to the FF&E Reserve Account (other than the FF&E Reserve Deposit), Borrower may deliver to Lender a Letter of Credit in an amount equal to the amount that is required to be deposited into the FF&E Reserve Account. Such Letter of Credit shall constitute additional collateral for the Loan and Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof for the purposes set forth in the Approved FF&E Budget if Borrower fails to do so within a reasonable time after notice from Lender, or Lender shall have the right to draw down upon such Letter of Credit and apply the proceeds thereof as otherwise provided in this Agreement following an Event of Default. All earnings or interest on the FF&E Reserve Funds shall be and become part of the FF&E Reserve Funds and shall be disbursed as provided in this Section 7.3herein.
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