Permitted Reserves. The Redeveloper shall have the right to establish a reserve against vacancies, unpaid rentals, and reasonable contingencies in an amount up to ten percent (10%) of the Annual Gross Revenues of the Redeveloper for the prior fiscal year (hereinafter referred to as the “Reserve”) and may retain such part of the Excess Net Profits as is necessary to eliminate a deficiency in that Reserve, as provided in N.J.S.A. 40A:20-15. In no event shall any portion of the Excess Net Profits be retained or contributed to such Reserve if the amount of the Reserve as of the end of such fiscal year equals or exceeds ten percent (10%) of the preceding year’s Annual Gross Revenues.
Permitted Reserves. The Entity shall have the right to establish a reserve against vacancies, unpaid rentals, and reasonable contingencies in an amount up to ten percent (10%) of the Annual Gross Revenues of the Entity for the prior fiscal year (hereinafter referred to as the “Reserve”) and may retain such part of the Excess Net Profits as is necessary to eliminate a deficiency in that Reserve, as provided in N.J.S.A. 40A:20-15.
Permitted Reserves. The Entity may maintain during the term of this Agreement a reserve against vacancies, unpaid rentals, and contingencies in an amount not exceeding 10% of the Entity’s Gross Revenues for the last full fiscal year preceding the determination with respect to permitted Net Profit as provided in N.J.S.A. 40A:20-15, said reserve to be noncumulative, it being intended that no further credits thereto shall be permitted after the reserve shall have attained the allowable level of 10% of the preceding year’s Gross Revenues as aforesaid; provided, however that the Entity may retain sufficient excess Net Profits each year to eliminate any deficiency in the reserve.
