Common use of Prohibited Distributions Clause in Contracts

Prohibited Distributions. No Distribution may be made in the following circumstances: (a) when a written notice of default has been issued to Borrower by any entity with an equitable or beneficial interest in the Project and the default is not cured within the applicable cure periods; or (b) when OCII determines that Borrower or Borrower's management agent has failed to comply with this Agreement and such failure has not been remedied; or (c) if required debt service on all loans secured by the Project and all operating expenses have not been paid current; or (d) if the Replacement Reserve Account, Operating Reserve Account or any other reserve account required for the Project is not fully funded under this Agreement; or (e) if the Loan is to be repaid from Surplus Cash, Borrower failed to make a payment when due on a Payment Date and the sum remains unpaid; or (f) during the pendency of an uncured Event of Default (including Borrower's failure to provide its own funds at any time OCII determines the Loan is out of balance) under any OCII Document.

Prohibited Distributions. No Distribution may be made in the following circumstances: (a) when a written notice of default has been issued to Borrower by any entity with an equitable or beneficial interest in the Project and the default is not cured within the applicable cure periods; or (b) when OCII determines that Borrower or BorrowerXxxxxxxx's management agent has failed to comply with this Agreement and such failure has not been remedied; or (c) if required debt service on all loans secured by the Project and all operating expenses have not been paid current; or (d) if the Replacement Reserve Account, Operating Reserve Account or any other reserve account required for the Project is not fully funded under this Agreement; or (e) if the Loan is to be repaid from Surplus Cash, Borrower failed to make a payment when due on a Payment Date and the sum remains unpaid; or (f) during the pendency of an uncured Event of Default (including BorrowerXxxxxxxx's failure to provide its own funds at any time OCII determines the Loan is out of balance) under any OCII Document.