Operating Deficit Reserve. The Special Limited Partner on behalf of the Partnership shall retain the sum of $25,000 of the second capital contribution payment specified in Section 7.1(b) of this Agreement into a reserve account under the Partnership's name. Such reserve fund shall only be released to the General Partner upon the earlier of: (a) the Project's achievement of a Debt Service Coverage of 1.15 for 12 consecutive months in 1998; or (b) on December 31, 1999.
Operating Deficit Reserve. At the Conversion Date, Borrower shall deposit $qp with *Senior Lender or the Escrow Agent, which funds shall be used as an operating deficit reserve (“ODR”). Borrower may only use the funds in the ODR to pay budgeted expense items approved by Lender and scheduled Loan payments, but only if the cash revenues from the Premises are insufficient for those purposes. After the initial deposit into the ODR, Borrower is not required to further fund the ODR, but all interest earned on the ODR shall become a part of the ODR. Before Borrower may draw on the ODR, Borrower must notify Lender in writing, explain the need for the withdrawal, and receive Lender’s approval of the withdrawal. If Borrower at any time draws on the ODR, Borrower shall first use any “free cash flow” from the Premises *(as defined in section
Operating Deficit Reserve. (a) On or before the date hereof, Borrower shall deposit with Bondowner Representative an amount not less than $ (the "Operating Deficit Reserve") in an account or sub-account maintained by Bondowner Representative (the "Operating Deficit Reserve Account"). Bondowner Representative shall have the sole right to make withdrawals from such Operating Deficit Reserve. All investment earnings on funds in the Operating Deficit Reserve shall be calculated by Bondowner Representative and added to and become part of the Operating Deficit Reserve. If applicable law requires and provided that no Event of Default exists under any of the Loan Documents, Bondowner Representative shall pay to Borrower the interest earned on the Operating Deficit Reserve once each year. Borrower hereby assigns to Bondowner Representative, and grants Bondowner Representative a first-priority security interest in, all of Borrower’s interest in the Operating Deficit Reserve Account and all deposits at any time contained therein and the proceeds thereof as additional security for ail of the Borrower’s obligations under this Instrument and the other Loan Documents. Any amounts deposited with Bondowner Representative under this Section 11.36 may be commingled with any other funds held by Bondowner Representative (provided that Bondowner Representative shall maintain separate sub-accounts for such Operating Deficit Reserve) and shall not operate to reduce the Loan, unless applied by Bondowner Representative for that purpose under Section 11.36(c).
Operating Deficit Reserve a. At or prior to Section 1602 Loan closing the Mortgagor must enter into an agreement to establish an Operating Deficit Reserve (ODR) with the Authority in the initial amount of $*** . The ODR shall be funded in cash, held and controlled by the Authority and will be invested and reinvested by the Authority’s Office of Finance. Interest earned on this reserve, if any, shall become part of this reserve and shall be treated and disbursed in the same way.
Operating Deficit Reserve a. The Operating Deficit Reserve will be based on six (6) months of operating expenses and hard debt service (currently estimated at $ ) and will be fully funded by conversion.
Operating Deficit Reserve. Upon receipt by the Partnership of the First Installment, the Partnership shall establish the Operating Deficit Reserve as a separate, interest-bearing account with a financial institution acceptable to BCTC 94, Inc. and shall deposit therein funds in the amount of $52,118.00 from the proceeds of the First Installment. Funds in the Operating Deficit Reserve are intended to be employed solely for the payment of Operating Deficits. All interest earnings on funds on deposit in the Operating Deficit Reserve shall be retained therein for the aforesaid purposes. The Operating Deficit Reserve shall remain under joint control of the General Partner and BCTC 94, Inc. Withdrawals from the Operating Deficit Reserve shall be made only with the Consent, or upon the direction, of the General Partner and BCTC 94, Inc. The Operating Deficit Reserve shall be released to the Partnership upon the later to occur of (i) the termination of the "tax credit compliance period" and/or the "extended use period" as such term is defined pursuant to IRC Sec. 42(h)(6), or (ii) the termination, release or discharge of the Second Loan.
Operating Deficit Reserve. (i) The Partnership shall establish the Operating Deficit Reserve as a separate, interest-bearing account with a financial institution acceptable to BCTC 94, Inc. and shall deposit therein initial funds in the amount of $200,000 (the "Initial Reserve Fund Deposit") from the proceeds of the applicable Installment pursuant to the following schedule: (x) $100,000 upon Substantial Completion; and (y) $100,000 upon Substantial Completion from proceeds of the $100,000 Note. The Operating Deficit Reserve shall be increased annually to the extent of Cash Flow pursuant to Section 11.03(A)(a). Funds in the Operating Deficit Reserve are intended to be employed solely for the payment of Operating Deficits. All interest earnings on funds on deposit in the Operating Deficit Reserve shall be retained therein for the aforesaid purposes. The Operating Deficit Reserve shall remain under joint control of the General Partner and BCTC 94, Inc. Withdrawals from the Operating Deficit Reserve shall be made only with the Consent, or upon the direction, of the General Partner and BCTC 94, Inc. (ii) The Operating Deficit Reserve shall be released to the Partnership upon the later to occur of (x) the termination of the "tax credit compliance period" and/or the "extended use period" as such term is defined pursuant to IRC Section 42(h)(6), or (y) the termination, release or discharge of the City Loan. (iii) Notwithstanding anything to the contrary contained herein, in the event that the Project receives a five (5) year renewal of the HUD Section 8 McKinney Fund contracts (thx "Xxxx Year Section 8 Extension"), then at such time eighty percent (80%) of the balance of the Operating Deficit Reserve shall be disbursed to the General Partner subject to Section 8.18(b)(iv) below, and provided that (x) the Partnership maintains a minimum Operating Deficit Reserve balance of $100,000 and (y) all accrued fees payable to the Limited Partner have been paid (conditions (x) and (y) herein shall be referred to as the "Reserve Disbursement Conditions"). In the event that the Five Year Section 8 Extension is not granted, then the General Partner shall receive fifteen percent (15%) of the balance of the Operating Deficit Reserve upon each one-year renewal of said HUD Section 8 contracts, provided that the Reserve Disbursement Conditions are met prior to each disbursement of said funds. However, in any event, funds shall be released from the Operating Deficit Reserve in an amount sufficient to pay any D...
Operating Deficit Reserve. The Company shall not be required to establish an Operating Deficit Reserve for the Project.
Operating Deficit Reserve. Upon receipt by the Partnership of the Third Installment, the Partnership shall establish the Operating Deficit Reserve as a separate, interest-bearing account with a financial institution acceptable to BCTC 94, Inc. and shall deposit therein funds in the amount of $52,000.00 from the proceeds of the Third Installment. Funds in the Operating Deficit Reserve are intended to be employed solely for the payment of Operating Deficits. All interest earnings on funds on deposit in the Operating Deficit Reserve shall be retained therein for the aforesaid purposes. The Operating Deficit Reserve shall remain under joint control of the General Partner and BCTC 94, Inc. Withdrawals from the Operating Deficit Reserve shall be made only with the Consent, or upon the direction, of the General Partner and BCTC 94, Inc.
Operating Deficit Reserve. The Partnership shall establish an Operating Deficit Reserve Escrow Account (the "Operating Deficit Reserve") as a separate, interest bearing account with and shall deposit therein funds in the amount of $348,500. Funds in the Operating Deficit Reserve are intended to be employed solely for the payment of Operating Deficits (including, without limitation, debt service, taxes and insurance), unless otherwise released from escrow by the Lender and/or Letter of Credit Issuer with the Consent of BCTC 94, Inc., provided that until Rental Achievement the Operating Deficit Reserve must always maintain a minimum balance of $200,000, which may not be depleted by draws on the Operating Deficit Reserve during the period prior to Rental Achievement. All interest earnings on funds on deposit in the Operating Deficit Reserve shall be retained therein for the aforesaid purposes. Withdrawals from the Operating Deficit Reserve shall be made only with the Consent, or upon the direction, of the Lender and BCTC 94, Inc.. The Operating Deficit Reserve shall be maintained until the later of (i) five years after the occurrence of Rental Achievement, or (ii) the achievement of twelve consecutive months at a minimum monthly occupancy rate of 93% plus twelve consecutive months of operations during each of which Cash Available for Debt Service Requirements equals or exceeds 1.15 times Debt Service or (iii) the extension of the Letter of Credit for an additional five-year term. The Operating Deficit Reserve shall also be subject to the requirements of the Letter of Credit Issuer and shall function initially as the Lease Up Reserve required by the Letter of Credit Issuer. Upon Rental Achievement, the Operating Deficit Reserve shall be paid into the account maintained by the Letter of Credit Issuer as the Letter of Credit/Debt Service Account, into which annual payments set forth in Section 11.03 A(b) shall also be paid. Withdrawals from the Operating Deficit Reserve shall always be subject to the consent of both the Lender and BCTC 94, Inc. ARTICLE IX TRANSFERS OF, AND RESTRICTIONS ON TRANSFERS OF INTERESTS OF LIMITED PARTNERS TC "ARTICLE IX - TRANSFERS OF, AND RESTRICTIONS ON TRANSFERS OF INTERESTS OF LIMITED PARTNERS"\l1
