Operating Deficit Account Sample Clauses

Operating Deficit Account. The General Partner, on behalf of the Partnership, shall establish an Operating Deficit Account on or before the Apartment Housing maintains Break-even Operations for three consecutive months and shall deposit thereinto an amount equal to one month's mandatory debt service payment and one month's operating expenses. The funds in the Operating Deficit Account shall be used to pay operating expenses excluding repair and maintenance items. The Operating Deficit Account shall require the joint signature of the General Partner and the Special Limited Partner for any withdrawals. The Operating Deficit Account shall terminate upon conclusion of the Operating Deficit Guarantee Period. Upon termination of the Operating Deficit Guarantee Period, any remaining funds be distributed by the Partnership to the Developer in partial satisfaction of the Development Fee.
Sample 1
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Operating Deficit Account. At the time of the Capital Contribution payment referenced in Section 7.2(d), the General Partner will deposit $90,000 into an operating deficit reserve account (the "Operating Deficit Account"). The Operating Deficit Account shall be an interest-bearing account held by a federally insured financial institution mutually agreed upon by the General Partner and the Special Limited Partner and requiring the signatures of both the General Partner and the Special Limited Partner for any withdrawals. The Operating Deficit Account may not be used to fund Operating Deficits during the first full three years following the achievement of Break-even Operations unless agreed to in writing by the General Partner and the Special Limited Partner. Commencing in 2011 and continuing each year thereafter until the balance of the Operating Deficit Account is zero, the General Partner and the Special Limited Partner agree to distribute to the General Partner from the Operating Deficit Account an amount based on a ten-year amortization, provided that the Debt Service Coverage for the prior calendar year was at least 1.10, as evidenced by audited financial statements. Notwithstanding the above, (a) there will be no distribution to the General Partner in any year in which the prior year's Debt Service Coverage was not at least 1.10, and (b) funds
Sample 1
Operating Deficit Account. The General Partner, on behalf of the Partnership, shall establish an Operating Deficit Account on or before the Apartment Housing maintains Breakeven Operations for three consecutive months and shall deposit thereinto $12,500. The funds in the Operating Deficit Account shall be used to pay operating expenses excluding repair and maintenance items. The Operating Deficit Account shall require the joint signature of the General Partner and the Special Limited Partner for any withdrawals. The Operating Deficit Account shall terminate upon conclusion of the Operating Deficit Guarantee Period. Upon termination of the Operating Deficit Guarantee Period, any remaining funds shall be distributed by the Partnership to the Developer in partial satisfaction of the Development Fee and then to the General Partner as a return of capital.
Sample 1
Operating Deficit Account. The Administrative General Partner, on behalf of the Partnership, shall establish an Operating Deficit Account in the amount of $354,003 (the “Reserve Minimum”), which shall be funded from the proceeds of the Capital Contribution made pursuant to Section 7.2(e) and other Project sources. The General Partner shall be permitted to fund additional amounts to the Operating Deficit Account from Project sources. The funds in the Operating Deficit Account will be used to pay operating expenses excluding capital repair and maintenance items following full funding of Operating Deficits to the extent required by Section 6.3, provided that the General Partner will obtain the Consent of the Special Limited Partner to any withdrawals. Upon termination of the Compliance Period, any remaining funds will be distributed by the Partnership pursuant to Section 11.1. The Partnership shall receive credit for any lender controlled reserve (a “Lender Operating Reserve”) that is used in accordance with the requirements of this Section
Sample 1
Operating Deficit Account. The General Partner, on behalf of the Partnership, shall establish an Operating Deficit Account at the time the Apartment Housing maintains Break-even Operations for 3 consecutive months and shall deposit thereinto an amount equal to one month's mandatory debt service payment and one month's operating expenses. The funds in the Operating Deficit Account shall be used to pay operating expenses excluding repair and maintenance items. Withdrawals from the Operating Deficit Account shall be made only with the consent of the Special Limited Partner and Alabama
Sample 1

Related to Operating Deficit Account

  • No Deficit Restoration No Member shall be personally liable for a deficit Capital Account balance of that Member, it being expressly understood that the distribution of liquidation proceeds shall be made solely from existing Company assets.

  • Capital Account Deficits Loss shall not be allocated to a Limited Partner to the extent that such allocation would cause a deficit in such Partner’s Capital Account (after reduction to reflect the items described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of such Partner’s shares of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain. Any Loss in excess of that limitation shall be allocated to the General Partner. After the occurrence of an allocation of Loss to the General Partner in accordance with this Section 5.01(e), to the extent permitted by Regulations Section 1.704-1(b), Profit first shall be allocated to the General Partner in an amount necessary to offset the Loss previously allocated to the General Partner under this Section 5.01(e).

  • Compliance with Certain Requirements of Regulations; Deficit Capital Accounts In the event the Company is “liquidated” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), distributions shall be made pursuant to this Article X to the Unit Holders who have positive Capital Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2). If any Unit Holder has a deficit balance in such Member’s Capital Account (after giving effect to all contributions, distributions and allocations for all Fiscal Years, including the Fiscal Year during which such liquidation occurs), such Unit Holder shall have no obligation to make any contribution to the capital of the Company with respect to such deficit, and such deficit shall not be considered a debt owed to the Company or to any other Person for any purpose whatsoever. In the discretion of the Liquidator, a pro rata portion of the distributions that would otherwise be made to the Unit Holders pursuant to this Article X may be: (i) distributed to a trust established for the benefit of the Unit Holders for the purposes of liquidating Company assets, collecting amounts owed to the Company, and paying any contingent or unforeseen liabilities or obligations of the Company, in which case the assets of any such trust shall be distributed to the Unit Holders from time to time, in the reasonable discretion of the Liquidator, in the same proportions as the amount distributed to such trust by the Company would otherwise have been distributed to the Unit Holders pursuant to Section 10.2 of this Agreement; or (b) withheld to provide a reasonable reserve for Company liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to the Company, provided that such withheld amounts shall be distributed to the Unit Holders as soon as practicable.

  • Permitted Withdrawals From Custodial Account The Servicer shall, from time to time, withdraw funds from the Custodial Account for the following purposes:

  • Permitted Withdrawals and Transfers from the Master Servicer Collection Account (a) The Master Servicer will, from time to time on demand of a Servicer or the Securities Administrator, make or cause to be made such withdrawals or transfers from the Master Servicer Collection Account as the Master Servicer has designated for such transfer or withdrawal pursuant to this Agreement and the related Servicing Agreement. The Master Servicer may clear and terminate the Master Servicer Collection Account pursuant to Section 10.01 and remove amounts from time to time deposited in error.

  • Borrowing Base Deficiency If at any time there exists a Borrowing Base Deficiency the Borrower shall cure same in accordance with Section 2.06 hereof.

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