Installment Expenses Sample Clauses
The Installment Expenses clause defines how costs associated with installment payments are handled within an agreement. It typically outlines which party is responsible for paying expenses that arise from dividing payments into installments, such as administrative fees or interest charges. By clarifying the allocation of these costs, the clause helps prevent disputes over payment responsibilities and ensures both parties understand their financial obligations when payments are not made in a lump sum.
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Installment Expenses. (a) Subject to the further provisions of this Section 4.5, from and after the Commencement Date, on each Payment Date for each individual Demised Premises, Tenant shall deposit with Landlord an amount equal to one-twelfth (1/12th) of the sum of the reasonable estimate of Landlord of annual Impositions, Operating Expenses, CAM Expenses, Property Document CAM Expenses, Landlord’s Insurance Costs and all other recurrent Property Charges (each an “Installment Expense”, and collectively, “Installment Expenses”) with respect to such individual Demised Premises, and in light of Tenant’s Proportionate Share, as determined from time to time based on (i) reasonably available information existing as at the Commencement Date, with respect to the first Lease Year, and (ii) thereafter, the prior Lease Year’s estimates (as adjusted for facts or circumstances known to Landlord and/or Tenant). Landlord will apply the amounts so deposited to the payment of Installment Expenses as the same shall become due and payable.
(b) The monthly installments on account of Installment Expenses shall be payable by Tenant as follows:
(i) Tenant’s Proportionate Share of all Impositions on an annual basis shall be paid to Landlord in equal monthly installments on each Payment Date in an amount based on one hundred five percent (105%) of the prior calendar year tax ▇▇▇▇ for all of the Demised Premises, or Landlord may elect, at its sole option, to ▇▇▇▇ such amounts in arrears; provided, that in the event Landlord is required under any mortgage covering the Property to escrow real estate taxes, Landlord may, but shall not be obligated to, use the amount so paid as a basis for its estimate of the monthly installments due from Tenant hereunder. Tenant shall pay initially, and until further notice by Landlord, the estimated amounts of Impositions set forth in Schedule 4.5 to the Side Letter. On an annual basis, no later than April 1 of each calendar year, Landlord shall furnish Tenant with a written statement of the actual amount of Tenant’s Proportionate Share of Impositions (“Tax Statement”) and a copy of any and all tax bills and statements received from the taxing authority which serve as a basis for the determination of Impositions and Tenant’s Proportionate Share of Impositions. In the event no tax ▇▇▇▇ is available, Landlord will reasonably compute the amount of such tax and provide a copy of the tax ▇▇▇▇ when the same becomes available. If the total amount paid by Tenant under this Secti...