Operating Expense Funds Sample Clauses
The Operating Expense Funds clause defines the financial obligations related to the payment and management of funds used to cover the ongoing costs of operating a property or business. Typically, this clause outlines what constitutes operating expenses—such as utilities, maintenance, insurance, and administrative costs—and specifies how these expenses are calculated, allocated, and paid by the responsible parties, often tenants in a commercial lease. By clearly delineating these responsibilities, the clause ensures transparency in cost-sharing and helps prevent disputes over what expenses are included, thereby promoting smooth financial operations and accountability.
Operating Expense Funds. (a) On each Monthly Payment Date occurring on and after the occurrence and during the continuance of a Trigger Period, Borrower shall deposit (or shall cause there to be deposited) into an Eligible Account held by Lender or Servicer (the “Operating Expense Account”) an amount equal to the aggregate amount of Approved Operating Expenses and Approved Extraordinary Expenses to be incurred by Borrower for the then current Interest Accrual Period (such amount, the “Op Ex Monthly Deposit”). Amounts deposited pursuant to this Section 8.4 are referred to herein as the “Operating Expense Funds”. Provided no Event of Default has occurred and is continuing, Lender shall disburse the Operating Expense Funds to Borrower to pay Approved Operating Expenses and/or Approved Extraordinary Expenses upon Borrower’s request (which such request shall be accompanied by an Officer’s Certificate detailing the applicable expenses to which the requested disbursement relates and attesting that such expense shall be paid with the requested disbursement).
(b) Subject to Section 8.14(i), any amounts remaining in the Operating Expense Fund after the Debt has been paid in full, shall be returned (x) in the event the Mezzanine Loan is outstanding, to Mezzanine Lender to be applied in accordance with the Mezzanine Loan Agreement, or (y) in the event that the Mezzanine Loan is paid in full, to Borrower.
Operating Expense Funds. On each Monthly Payment Date occurring on and after the occurrence and during the continuance of a Trigger Period, Borrower shall deposit (or cause to be deposited) into an Eligible Account held by Lender or Servicer (the “Operating Expense Account”) an amount equal to the aggregate amount of Approved Operating Expenses and Approved Extraordinary Expenses to be incurred by Borrower for the then current Interest Accrual Period (such amount, the “Op Ex Monthly Deposit”). Amounts deposited pursuant to this Section 8.4 are referred to herein as the “Operating Expense Funds”. Provided no Event of Default has occurred and is continuing, Lender shall disburse the Operating Expense Funds to Borrower to pay Approved Operating Expenses and/or Approved Extraordinary Expenses upon Borrower’s request (which such request shall be accompanied by an Officer’s Certificate detailing the applicable expenses to which the requested disbursement relates and attesting that such expense shall be paid with the requested disbursement).
Operating Expense Funds. (a) Borrower has submitted to Agent an annual budget for Operating Expenses of the Project for the remainder of calendar year 2009 and for calendar year 2010, copies of which are attached as Exhibit D and shall hereafter submit to Agent an annual budget for Operating Expenses of the Project for subsequent calendar years (each, an “Annual Budget”) not later than thirty (30) days prior to the commencement of each calendar year in form reasonably satisfactory to Agent. Such Annual Budget for Operating Expenses of the Project shall be subject to Agent’s written approval (each such Annual Budget, as approved by Agent, an “Approved Annual Budget”), which approval shall not be unreasonably withheld, delayed or conditioned. The Annual Budgets attached hereto as Exhibit D are hereby deemed to be Approved Annual Budgets. In the event that Agent objects to a proposed Annual Budget submitted by Borrower, Agent shall advise Borrower of such objections within fifteen (15) days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise such Annual Budget and resubmit the same to Agent. Agent shall advise Borrower of any objections to such revised Annual Budget within ten (10) days after receipt thereof (and deliver to Borrower a reasonably detailed description of such objections) and Borrower shall promptly revise the same in accordance with the process described in this subsection until Agent approves the entire Annual Budget. Until such time that Agent approves a proposed Annual Budget, the most recently Approved Annual Budget shall apply; provided that, such Approved Annual Budget shall be adjusted to reflect actual increases in taxes, insurance premiums and other charges. No more than one time per calendar year, Borrower may submit to Agent, for its review and written approval, an updated Annual Budget for Operating Expenses of the Project.
Operating Expense Funds. On each Monthly Payment Date, Borrower shall deposit (or shall cause there to be deposited) into an Eligible Account held by Lender or Servicer (the “Operating Expense Account”) an amount equal to the aggregate amount of Approved Operating Expenses and Approved Extraordinary Expenses to be incurred by Borrower for the then current Interest Period (such amount, the “Operating Expense Monthly Deposit”). Amounts deposited pursuant to this Section 7.5 are referred to herein as the “Operating Expense Funds”. Provided no Event of Default has occurred and is continuing, Lender shall disburse the Operating Expense Funds to Borrower to pay Approved Operating
Operating Expense Funds
Operating Expense Funds