FF&E Reserves. An FF&E Reserve has been established in respect of each of the Hotels and the Borrower or its Subsidiaries or Eligible Joint Ventures have made any contributions to such FF&E Reserve as required by the terms of the Operating Lease and/or the Management Agreement relating thereto.
FF&E Reserves. If Operating Agreement(s) for multiple Hotels do not separately allocate Base Payments to such Hotels, then Base Payments shall be reasonably allocated among such Hotels (where necessary) in a manner satisfactory to Agent.
FF&E Reserves. (a) Borrower shall deposit or cause to be deposited into its FF&E Reserve Account (which account is hereby pledged to Administrative Agent, for the benefit of Lenders, as additional collateral for the Loan, subject to the terms of the Management Agreement and Management Agreement Assignment/Subordination), not later than the twentieth (20th) day of each month during the term of the Loan an amount equal to the greater of (i) four percent (4%) of Gross Operating Revenues for the Property for the previous month, and (ii) the amount required to be deposited into any FF&E reserve for such month pursuant to the terms of any applicable Franchise Agreement and/or Management Agreement (each an “FF&E Reserve”).
(b) Provided no Default has occurred, funds may be withdrawn from the FF&E Reserve Account, and Borrower and Operating Lessee shall use such funds, solely for the payment of expenditures for FF&E and other capital items in accordance with the applicable Approved Capital Budget or otherwise in accordance with the Management Agreement, Franchise Agreement and/or Management Agreement Assignment/Subordination. In addition, regardless of the existence of a Default, funds may be withdrawn from the FF&E Reserve Account if and to the extent permitted by the terms of the Management Agreement Assignment/Subordination applicable to the Property for the benefit of which the relevant FF&E Reserve Account is maintained.
(c) The Administrative Agent shall have the right (to be exercised from time to time at its election) to audit Borrower’s and Operating Lessee’s books and records in order to determine whether or not the funds withdrawn or disbursed from the FF&E Reserve Account have been spent only for the purpose for which they were withdrawn or disbursed. Borrower and Operating Lessee shall cooperate with Administrative Agent in connection with any such audit.
FF&E Reserves. (a) Borrower shall not be required to make deposits into an escrow account with Lender for Capital Expenses and/or FF&E Expenses, provided that Mortgage Borrower is required to and does make monthly deposits for Capital Expenses and FF&E Expenses under the Mortgage Loan Documents. In the event that either (x) Mortgage Borrower does not (or is not required to) make such deposits, or (y) Borrower breaches its obligations under clause (b) of this Section 3.4 (beyond the expiration of all applicable notice and cure periods), Borrower shall be obligated to make such deposits to Lender substantially in accordance with the provisions of the Mortgage Loan Agreement.
(b) Borrower shall make or cause Mortgage Borrower to perform all capital repairs or replacements when required in order to keep the Property in condition and repair consistent with similar well-maintained hotels operated by franchisees of the Franchisor, and to keep the Property or any portion thereof from deteriorating (collectively, “CapEx Work”). Borrower shall complete or cause Mortgage Borrower to complete all CapEx Work in a good and workmanlike manner as soon as practicable following the commencement thereof and in accordance with the requirements of each of the Mortgage Loan Documents and the applicable Franchise Agreement. Borrower shall provide Lender with copies of all draw requests made by Mortgage Borrower, and any other correspondence between Mortgage Borrower and Mortgage Lender, in each case with respect to the FF&E Reserve Subaccount (as defined in the Mortgage Loan Agreement) (x) simultaneously with Mortgage Borrower’s deliver thereof, and/or (y) promptly following Mortgage Borrower’s receipt thereof (as applicable).
FF&E Reserves. Borrower shall deposit, or shall cause Manager to deposit, monthly into the FF&E Reserve Account an amount equal to the greater of (a) (i) prior to January 1, 2017, two percent (2.0%) of Gross Operating Revenues, (ii) on or after January 1, 2017 but prior to January 1, 2018, three percent (3.0%) of Gross Operating Revenues, and (iii) on or after January 1, 2018, four percent (4.0%) of Gross Operating Revenues or (b) the actual amount of reserves required to be deposited for FF&E under the Franchise Agreement. Within ten (10) business days following submission in writing of a request therefor by Borrower, Lender shall provide to Borrower from the FF&E Reserve Account (to the extent of funds available therein) funds sufficient to pay FF&E Expenses, provided that such request is accompanied by invoices evidencing such FF&E Expenses sufficient to permit Lender to determine that such funds are being disbursed to pay FF&E Expenses and a certification by Borrower that such funds will be used to pay FF&E Expenses.
FF&E Reserves. A. Management Company shall establish a separate escrow reserve account for each Hotel ("FF&E Reserve") to cover the cost of the following ("FF&E Replacements"):
1. Replacements and renewals related solely to the Hotels' FF&E (including communication systems and computer systems); and
2. Certain routine repairs and maintenance to the Hotels' buildings which are normally capitalized under generally accepted accounting principles, such as exterior and interior repainting, resurfacing building walls, floors, roofs and parking areas, buying or leasing replacement vehicles, and replacing folding walls and the like, but which are not major repairs, alterations, improvements, renewals or replacements to such building's structure or to its mechanical, electrical, heating, ventilating, air conditioning, plumbing or vertical transportation systems, the cost of which are paid by Owner under Section 7.03 rather than from the FF&E Reserve. Subject to any reasonable limitations required by the Permanent Loan or Replacement Debt with respect thereto, the FF&E Reserve accounts shall be maintained in one or more banks, money market or similar interest-bearing accounts designated by Owner and approved by Management Company.
B. All expenditures of funds initially deposited into the Dayton Hotel Reserve Account (together with any interest earned thereon) shall be subject to Owner's approval (not to be unreasonably withheld), except that Management Company may use such funds in 1993 or later in order to perform a major rooms renovation. Subject to the provisions of subsection E below, (i) with respect to each of the Fairview Park, Southfield, Livonia and Fullerton Hotels, during Fiscal Years 1993 and 1994, Management Company shall transfer into the FF&E Reserve an amount equal to three percent (3%) of Gross Revenues from such Hotels for each such Fiscal Year; during Fiscal Years 1995, 1996, 1997, 1998 and 1999, Management Company shall transfer into the FF&E Reserve an amount equal to four percent (4%) of Gross Revenues from such Hotels for each such Fiscal Year; and during Fiscal Year 2000 and each Fiscal Year thereafter, Management Company shall transfer into the FF&E Reserve an amount equal to four percent (4%) of Gross Revenues from such Hotels for each of such Fiscal Years; (ii) with respect to the Dayton Hotel, Management Company shall transfer into the FF&E Reserve with respect to such Hotel an annual amount equal to five percent (5%) of Gross Revenues from such Hotel i...
FF&E Reserves. Borrower or Operating Lessee shall deposit, or shall cause Manager to deposit into the FF&E Reserve Account, monthly in accordance with the provisions of the Management Agreement, an amount equal to the actual amount of reserves required to be deposited for FF&E pursuant to the Management Agreement (or any Franchise Agreement, if applicable). Funds on deposit in the FF&E Reserve Account may be (a) applied by Manager for payment of FF&E Expenses in accordance with the Management Agreement and otherwise approved annual capital budgets for the Property, and (b) used for additional capital expenditures which are not budgeted but which are approved by Manager and by Lender in the exercise of Lender’s reasonable discretion.
FF&E Reserves. Pursuant to Section 12.1(b) of the Contribution Agreement, the Operating Partnership shall be entitled to retain the amount of all FF&E Reserves at Closing without any adjustment to the Exchange Amount. The relevant Contributors shall, following the Closing, execute such instruments as the Operating Partnership shall reasonably request to confirm that as of the Closing the Contributors have no further interest in the FF&E Reserves, provided that such instruments do not create any additional cost or liability to the Contributors that is not paid by the Operating Partnership.
FF&E Reserves. If Lease(s) for multiple Hotels do not separately allocate Base Rent to such Hotels, then Base Rent shall be reasonably allocated among such Hotels (where necessary) in a manner satisfactory to Agent.
FF&E Reserves. Operating Partnership shall be entitled to retain ------------- the amount of all FF&E Reserves at Closing without any adjustment to the Exchange Amount.
