Common use of Operating Reserve Account Clause in Contracts

Operating Reserve Account. Borrower shall establish an operating reserve account or sub-account within the Development’s general operating account no later than sixty (60) days from the date of recordation of this Agreement. Borrower shall fund the operating reserve account with an initial deposit in an amount as specified in Exhibit C, and through monthly deposits from Operating Income in amounts as specified in Exhibit C or in approved annual operating budgets. Borrower shall fully replace any withdrawals from the operating reserve account using available cash flow prior to use of any cash flow to pay deferred Developer Fee, partnership management or similar fees, Supportive Services Costs (when not paid as part of operating costs), or Distributions. In no event shall the Operating Reserve be used to fund limited partner exit costs, except for amounts in excess of the balance required by the Department.

Operating Reserve Account. Borrower shall establish an operating reserve account or sub-account within the Development’s general operating account no later than sixty (60) days from the date of recordation of this Agreement. Borrower shall fund the operating reserve account with an initial deposit in an amount as specified in Exhibit C, and through monthly deposits from Operating Income in amounts as specified in Exhibit C or in approved annual operating budgets. Borrower shall fully replace any withdrawals from the operating reserve account using available cash flow prior to use of any cash flow to pay deferred Developer Fee, partnership management or similar fees, Supportive Services Costs (when not paid as part of operating costs), or Distributions. In no event shall the Operating Reserve be used to fund limited partner exit exist costs, except for amounts in excess of the balance required by the Department.