Common use of Optional Method for Payment of Interest Clause in Contracts

Optional Method for Payment of Interest. For Borrower’s benefit, the Budget includes a Budget Line Item for interest. Borrower hereby authorizes the Administrative Agent from time to time, for the mutual convenience of Lenders and Borrower, to disburse Loan proceeds to pay all the then accrued interest on the Notes, regardless of whether Borrower shall have specifically requested a disbursement of such amount. Any such disbursement, if made, shall be added to the outstanding principal balance of the Note. The authorization hereby granted, however, shall not obligate Lender to make disbursements of the Loan for interest payments (except upon Borrower’s qualifying for and requesting disbursement of that portion of the proceeds of the Loan allocated for such purposes in the Budget) nor prevent Borrower from paying accrued interest from its own funds. Once the Subject Property begins to generate Net Operating Income, Borrower may only borrow from the Loan interest in excess of the Net Operating Income so generated.

Optional Method for Payment of Interest. For Borrower’s benefit, the Budget includes a Budget Line Item for interestinterest payments on the Loan. Borrower hereby authorizes the Administrative Agent from time to time, for the mutual convenience of Lenders Lender and Borrower, to disburse Loan proceeds to pay all the then accrued interest on the Notes, regardless of whether Borrower shall have specifically requested a disbursement of such amount. Any such disbursement, if made, shall be added to the outstanding principal balance of the NoteNotes and shall, when disbursed, bear interest at the Applicable Rate. The authorization hereby granted, however, shall not obligate Lender Agent to make disbursements of the Loan for interest payments (except upon Borrower’s qualifying for and requesting disbursement of that portion of the proceeds of the Loan allocated for such purposes in the Budget) nor prevent Borrower from paying accrued interest from its own funds. Once the Subject Property Project begins to generate Net Operating Income, Borrower may only borrow from the Loan interest in excess of the Net Operating Income so generated.

Optional Method for Payment of Interest. For Borrower’s 's benefit, the Budget includes a Budget Line Item for interest. Borrower hereby authorizes the Administrative Agent Lender from time to time, for the mutual convenience of Lenders Lender and Borrower, to disburse Loan proceeds to pay all the then accrued interest on the NotesNote, regardless of whether Borrower shall have specifically requested a disbursement of such amount. Any such disbursement, if made, shall be added to the outstanding principal balance of the NoteNote and shall, when disbursed, bear interest at the Applicable Rate. The authorization hereby granted, however, shall not obligate Lender to make disbursements of the Loan for interest payments (except upon Borrower’s 's qualifying for and requesting disbursement of that portion of the proceeds of the Loan allocated for such purposes in the Budget) nor prevent Borrower from paying accrued interest from its own funds. Once the Subject Property begins to generate Net Operating Income, Borrower may only borrow from the Loan interest in excess of the Net Operating Income so generated.

Optional Method for Payment of Interest. For Borrower’s benefit, the Budget includes a Budget Line Item for interest. Borrower hereby authorizes the Administrative Agent from time to time, for the mutual convenience of Lenders and Borrower, to disburse Loan proceeds to pay all the then accrued interest on the Notes, regardless of whether Borrower shall have specifically requested a disbursement of such amount. Any such disbursement, if made, shall be added to the outstanding principal balance of the Note. The authorization hereby granted, however, shall not obligate Lender to make disbursements of the Loan for interest payments (except upon Borrower’s qualifying for and requesting disbursement of that portion of the proceeds of the Loan allocated for such purposes in the Budget) nor prevent Borrower from paying accrued interest from its own funds. Once the Subject Property Project begins to generate Net Operating IncomeNOI, Borrower may only borrow from the Loan interest in excess of the Net Operating Income NOI so generated.