Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 13 contracts
Samples: Purchase and Sale Agreement (Conam Realty Investors 4 L P), Purchase and Sale Agreement (Conam Realty Investors 3 L P), Purchase and Sale Agreement (Conam Realty Investors 2 L P)
Prorations. The following Seller shall pay (i) unpaid assessments by Condominium and Homeowner’s Associations which accrued or came due prior to Close of Escrow subject to any limitations on Seller’s liability for such assessments under applicable law, (ii) property taxes and periodic assessments secured by the Property which accrued prior to Close of Escrow, and (iii) utility or municipal liens secured by the Property which accrued prior to Close of Escrow. Seller shall notify Buyer in the event a Condominium or Homeowner’s Association demands an amount which exceeds Seller’s liability to such Association under applicable law. No later than (3) business days after Seller delivers such notice to Buyer, Buyer shall elect to (i) terminate the Agreement and receive a refund of the Xxxxxxx Money Deposit as Buyer’s sole and absolute remedy or (ii) proceed with the transaction and assume full responsibility for payment of any Association demand to the extent such demand exceeds Seller’s liability to the Association under applicable law. NO OTHER PRORATIONS ARE CONTEMPLATED UNDER THIS AGREEMENT, AND BUYER SHALL BE SOLELY RESPONSIBLE FOR ALL EXPENSES SET FORTH IN (C) BELOW. ANY SUCH AMOUNTS WHICH BY LAW ARE TO BE PAID BY SELLER SHALL BE REIMBURSED TO SELLER BY BUYER AT/OR PRIOR TO CLOSE OF ESCROW. If the regular common interest community, unit owner’s homeowner’s or condominium association dues, fees or assessments were paid prior to the Close of Escrow for a period of time subsequent to such date, then Buyer shall pay to Seller that portion of the dues, fees, and/or assessment attributable to the period of time after the Close of Escrow. Insurance premiums will not be prorated between Buyer prorated. Seller cannot endorse or assign existing insurance policies (if any) to Buyer, and Seller may cancel any existing insurance on the Property as of 11:59 p.m. local time the Close of Escrow. Rent and other income under leases of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during Property for the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder occurs shall not be concerned with any prorations that are to prorated and shall be made after the Closing pursuant to this Agreementproperty of and retained by Seller.
Appears in 7 contracts
Samples: Purchase Agreement, Real Estate Purchase Addendum, Purchase and Sale Agreement Addendum
Prorations. The following shall be prorated between Buyer (a) Seller and Seller Purchaser agree to adjust, as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the "Proration Time"), the following (collectively, the "Proration Items"):
(i) Rents, in accordance with Subsection 10.4(b) below.
(ii) Security Deposits and any prepaid rents, together with interest required to be paid thereon.
(iii) Utility charges payable by Seller, including, without limitation, electricity, water charges and sewer charges. If there are meters on the Real Property, Seller will cause readings of all said meters to be performed not more than five (5) days prior to the Closing Date, on and a per diem adjustment shall be made for the basis of days between the actual number of days elapsed during the month in which meter reading date and the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be Date based on the most recent official tax bills or notice of valuation available meter reading.
(iv) Amounts payable under the Service Contracts other than those Service Contracts which Purchaser has elected not to assume.
(v) Real estate taxes due and payable for the fiscal year in which calendar year. If the Closing occursDate shall occur before the tax rate is fixed, with due allowance the apportionment of real estate taxes shall be upon the basis of the tax rate for the preceding year applied to the latest assessed valuation. If subsequent to the Closing Date, real estate taxes (by reason of change in either assessment or rate or for any other reason) for the Real Property should be determined to be made higher or lower than those that are apportioned, a new computation shall be made, and Seller agrees to pay Purchaser any increase shown by such recomputation and vice versa. Seller will be charged and credited for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion amounts of all of the Property) and allocable either Proration Items relating to the period before up to and including the Closing or Proration Time, and Purchaser will be charged and credited for all of the Proration Items relating to the period after the ClosingProration Time. The estimated Closing prorations shall be set forth on a preliminary closing statement to be prepared by Seller and submitted to Purchaser prior to the Closing Date (the "Closing Statement"). The Closing Statement, then Buyer and Seller once agreed upon, shall adjust the actual Taxes between Buyer be signed by Purchaser and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income The proration shall be paid at Closing by Purchaser to Seller within ten (10if the prorations result in a net credit to Seller) days after end of or by Seller to Purchaser (if the month prorations result in which such amounts were collected. Buyer shall incur no obligation a net credit to Seller for Buyer's failure Purchaser) by increasing or reducing the cash to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion Purchaser in payment of the Purchase Price at the Closing. Escrow Holder shall If the actual amounts of the Proration Items are not known as of the Closing Date, the prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations will be made on the basis of the actual figures, and a final cash settlement will be made between Seller and Purchaser. No prorations will be made in relation to insurance premiums, and Seller's insurance policies will not be concerned assigned to Purchaser. Final readings and final xxxxxxxx for utilities will be made if possible as of the Closing Date, in which event no proration will be made at the Closing with respect to utility bills. Seller will be entitled to all deposits presently in effect with the utility providers, and Purchaser will be obligated to make its own arrangements for any prorations that are deposits with the utility providers. The provisions of this Section 10.4(a) will survive the Closing for twelve (12) months.
(b) Purchaser will receive a credit on the Closing Statement for the prorated amount (as of the Proration Time) of all Rental previously paid to or collected by Seller and attributable to any period following the Proration Time. After the Closing, Seller will cause to be made paid or turned over to Purchaser all Rental, if any, received by Seller after Closing and attributable to any period following the Proration Time. "Rental" as used herein includes fixed monthly rentals, additional rentals, percentage rentals, escalation rentals (which include each Tenant's proration share of building operation and maintenance costs and expenses as provided for under the Lease, to the extent the same exceeds any expense stop specified in such Lease), retroactive rentals, all administrative charges, utility charges, tenant or real property association dues, storage rentals, special event proceeds, temporary rents, telephone receipts, locker rentals, vending machine receipts and other sums and charges payable by Tenants under the Leases or from other occupants or users of the Property. Rental is delinquent when it was due prior to the Closing pursuant Date, and payment thereof has not been made on or before the Proration Time ("Delinquent Rental"). Delinquent Rental will not be prorated at Closing. Purchaser agrees to this Agreementinclude any Delinquent Rentals in its usual billing for up to six (6) months after Closing, but Purchaser will have no liability for the failure to collect any such amounts and will not be required to declare a default under any Lease or pursue legal action or incur any costs or expenses to enforce collection of any such amounts owed to Seller by any Tenant. All sums collected by Purchaser from and after Closing from each Tenant (excluding tenant specific xxxxxxxx for tenant work orders and other specific services will be applied first to current amounts owed by such Tenant to Purchaser and then to Delinquent Rental owed by such Tenant to Seller. Any sums due Seller will be promptly remitted to Seller.
Appears in 6 contracts
Samples: Agreement of Sale and Purchase (Mack Cali Realty L P), Agreement of Sale and Purchase (Mack Cali Realty L P), Agreement of Sale and Purchase (Mack Cali Realty Corp)
Prorations. (a) The following prorations relating to the Purchased Assets shall be prorated between Buyer made:
(i) Except as provided in Section 2.3(a)(v) and Seller as Section 2.3(a)(vi), in the case of 11:59 p.m. local time Taxes with respect to a Straddle Period, for purposes of Retained Liabilities, the day immediately preceding portion of any such Tax that is allocable to Sellers with respect to any Purchased Asset shall be:
(A) in the case of Taxes that are either (1) based upon or related to income or receipts, or (2) imposed in connection with any sale or other transfer or assignment of property (real or personal, tangible or intangible), other than Transfer Taxes, equal to the amount that would be payable if the taxable period ended on the Closing Date; and
(B) in the case of Taxes imposed on a periodic basis, or otherwise measured by the level of any item, deemed to be the amount of such Taxes for the entire Straddle Period (after giving effect to amounts which may be deducted from or offset against such Taxes) (or, in the case of such Taxes determined on an arrears basis, the basis amount of such Taxes for the actual immediately preceding period), multiplied by a fraction, the numerator of which is the number of days elapsed during in the month in which period ending on the Closing occurs: general Date and special county and city real property taxes and special assessments the denominator of which is the number of days in the entire Straddle Period. In the case of any Tax based upon or measured by capital (collectivelyincluding net worth or long-term debt) or intangibles, "Taxes"any amount thereof required to be allocated under this clause (i) for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions computed by reference to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion level of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before such items on the Closing Date. All determinations necessary to effect the foregoing allocations shall be made in a manner consistent with prior practice of the applicable Seller, and Buyer shall receive all rents Seller Group member, or Seller Subsidiary.
(ii) All charges for water, wastewater treatment, sewers, electricity, fuel, gas, telephone, garbage and other income accruing, and shall pay all other expenses accrued or incurred, in connection with utilities relating to the ownership or operation of Transferred Real Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other incomeClosing Date, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, with Sellers being liable to the extent such rents or other income items relate to the period ending on or before Pre-Closing Tax Period, and Purchaser being liable to the Closingextent such items relate to the Post-Closing Tax Period.
(b) If any of the foregoing proration amounts cannot be determined as of the Closing Date due to final invoices not being issued as of the Closing Date, Purchasers and Sellers shall prorate such rents or items as and when the actual invoices are issued to the appropriate Party. The Party owing amounts to the other income by means of such prorations shall be paid to Seller pay the same within ten thirty (1030) days after end delivery of a written request by the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementpaying Party.
Appears in 5 contracts
Samples: Master Sale and Purchase Agreement, Master Sale and Purchase Agreement, Master Sale and Purchase Agreement
Prorations. The following All items of income and expense shall be paid, prorated or adjusted as of the close of business on the day prior to the Closing Date (the "Proration Date") in the manner hereinafter set forth:
5.1 Purchaser shall be credited with (i) the amount of (A) all rents and (B) all expense contributions, real estate tax contributions, and other reimbursements from tenants ("Tenant Contributions") received by Seller and attributable to any month commencing after the Closing Date and (ii) all unapplied cash security deposits held by Seller and which were made by tenants under all leases of the Real Property in effect as of the Closing Date, and (iii) all unfunded tenant allowances and other payments (including leasing commissions for leases listed on Schedule 6) to be made by Seller and the cost of all construction or tenant improvement work to be done by Seller under all of the Leases and those proposed leases listed on Schedule 6 (whether or not such leases have been entered into as of the Closing Date), except to the extent set forth (x) specifically listed on Schedule 4; or (y) in the Proposals approved by Purchaser or deemed approved by Purchaser as provided in subsection 15(b) hereof.
5.2 All rents and Tenant Contributions and other income from the Property for the month of Closing shall be prorated between Buyer Purchaser and Seller as based upon their respective days of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the ownership for such month in which the Closing occurs. Neither Purchaser nor Seller shall receive credit at Closing for any payments of rental obligations due but not paid as of the Proration Date. At the time of the final calculation and collection from tenants of Tenant Contributions for 1997, whether in the nature of a reconciliation payment or full payment, in arrears, there shall be a reproration between Purchaser and Seller as to the Tenant Contributions. Such reproration shall not be made on the basis of a per diem method of allocation, but shall instead be apportioned between Seller and Purchaser on the basis of the relative share of actual expenses in question incurred and paid by Seller and Purchaser during the lease year in question. Seller covenants to provide Purchaser with any information necessary to finalize such calculation. Purchaser covenants to xxxx tenants for amounts due from tenants attributable to periods prior to closing and diligently pursue collections from tenants and, as collected, to timely deliver to Seller reproration amounts due Seller.
5.3 Percentage rent shall be prorated between Purchaser and Seller by utilizing the percentage rent payable for such lease year based upon the actual days of ownership of the Property during such tenant's lease year. There shall be no adjustment for percentage rent payments for a particular tenant until after the receipt of any percentage rent payments made by such tenant.
5.4 Any amounts received from tenants after Closing shall be applied on a tenant by tenant basis in the following order: general and special county and city real property taxes and special assessments (collectivelyi) first on account of any amount currently due Purchaser from such tenant(s); (ii) next, "Taxes"on account of any amount due Seller from such tenant(s) for the tax period up to and including the Proration Date and (iii) finally, any balance then in effect remaining to Purchaser. Seller retains the right to xxx tenants after Closing for any delinquent payments or other amounts owed to Seller, except for actions or proceedings affecting a tenant's rights of possession or landlord liens. However, Seller will not exercise any such rights or remedies unless such delinquent rents have not been collected by Purchaser and insurance premiums paid to Seller within six (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes 6) months after the Closing Date.
5.5 Operating expenses, including, without limitation, permits, licenses, membership dues, and any other prepaid expenses, shall be prorated between Purchaser and Seller on an accrual basis based on upon the actual days of their respective ownership of the Property utilizing the actual expenses or reasonable estimates, subject to reproration when the actual amounts are known.
5.6 Real estate taxes shall be prorated between Seller and Purchaser based upon the actual days of ownership of the parties for the year in which Closing occurs utilizing the most recent official ascertainable tax bills or notice xxxx(s). Seller and Purchaser agree to reprorate said real estate taxes upon Purchaser's receipt of valuation available the actual tax xxxx for the fiscal tax year in which question, if any. Seller reserves the Closing occursright to meet with governmental officials and to contest any reassessment governing or affecting Seller's obligations under this Section, with due allowance to Purchaser's prior written approval, which will not be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and unreasonably withheld. Seller shall adjust the actual Taxes between Buyer and Seller, outside retain all rights with respect to any refund of Escrow, as soon as reasonably possible following the Closing. In addition taxes applicable to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before any period prior to the Closing Date, and Buyer shall receive all rents and other income accruingsubject to the rights of tenants.
5.7 Except for utilities billed directly to Tenants, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses utilities shall be prorated as of the ClosingProration Date based upon either meter readings on the Proration Date or the prior month's actual invoices. Rents and other income, if any, collected by Buyer after Seller shall be credited with any unapplied utility deposit in effect as of the Closing Date to the extent such deposit is assignable and actually paid to Purchaser.
5.8 Purchaser shall be applied first to any amounts due to Buyer responsible for and thenpay for all costs in connection with (i) Proposals listed on Schedule 4 attached hereto, to the extent such rents amounts are identified on Schedule 4, and (ii) any Proposal which Purchaser approved, or other income relate is deemed to have approved as provided in Section 15(b) herein to the period ending on or before the Closing, extent such rents or other income amounts are identified in such Proposals; provided that no commissions shall be paid to Seller HCMC or any of its affiliates.
5.9 All insurance policies and property management agreements shall be terminated as of the Closing Date and there shall be no proration with respect to these items.
5.10 Purchaser shall be credited with the contractor's security deposits listed on Schedule 1 to the General Assignment attached as Exhibit I. In the event any prorations or computations made under this Section are based on estimates or prove to be incorrect, then either party shall be entitled to an adjustment to correct the same, provided that it makes written demand on the party from whom it is entitled to such adjustment within ten (10) one hundred and twenty days after the end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing current calendar year or, at Seller's optionin the case of percentage rent adjustments, credited to Buyer against from the cash portion end of the Purchase Price at the Closingapplicable lease year. Escrow Holder Purchaser shall not be concerned with indemnify and hold Seller harmless from and against any prorations that are to be made after the Closing and all claims for which Purchaser received credits pursuant to this AgreementSection 5. The indemnity set forth in the immediately preceding sentence and the covenants contained in this Section 5 shall survive Closing.
Appears in 4 contracts
Samples: Purchase and Sale Agreement (Taubman Centers Inc), Purchase and Sale Agreement (Taubman Realty Group LTD Partnership), Purchase and Sale Agreement (Taubman Realty Group LTD Partnership)
Prorations. The following shall be prorated between Buyer and Seller as (a) As of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the each Subsequent Closing Date, the Distribution Center Closing Date and Buyer shall receive each Acquired Regional Office Closing Date (as applicable), all rents and other income accruingitems set forth on Section 2.6 of the Company Disclosure Schedules, and shall pay all other expenses accrued or incurreditems for which proration is necessary, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing, such Subsequent Closing or Distribution Center Closing (collectively, the “Prorated Charges”). Rents On a monthly basis, the Company shall calculate the applicable Prorated Charges and other incomedeliver a notice of payment due to the Buyer within fifteen (15) Business Days of the end of each month with respect to the applicable Closing, Subsequent Closings and/or Distribution Center Closing that occurred during such month. Purchaser Sub shall pay to the Company the amount set forth on such notice of payment within five (5) Business Days of receipt of such notice of payment. Whenever possible, such prorations shall be based on actual, current payments by the Company or its Affiliates and to the extent such actual amounts are not available, such prorations shall be estimated as of the Closing, such Subsequent Closing and Distribution Center Closing (as applicable) based on actual amounts for the most recent comparable billing period. When the actual amounts become known, such prorations shall be recalculated by Purchaser Sub and the Company, and Purchaser Sub or the Company, as the case may be, promptly (but not later than ten (10) Business Days after notice of payment due) shall make any additional payment or refund so that the correct prorated amount is paid by each of Purchaser Sub and the Company.
(b) Percentage rent payable under each Acquired Lease and lease for each Acquired Regional Office, to the extent applicable, shall be prorated at the end of the current lease year for each Acquired Lease in accordance with the terms of the applicable Acquired Lease, and otherwise the percentage rent payable, if any, collected shall be paid by Buyer Purchaser Sub when due and the Company shall promptly reimburse Purchaser Sub a portion thereof determined by, in the case of an Acquired Lease with respect to an Acquired Store, multiplying (A) a fraction, the numerator of which is the amount of the Company’s or its Affiliates’ gross annual sales at such Acquired Store from the first day of such lease year to (and excluding) the Closing Date or the applicable Subsequent Closing Date (as applicable), and the denominator of which is the sum of Purchaser Sub’s and its Affiliates’ and the Company’s and its Affiliates’ gross annual sales at such Acquired Store for the entire lease year, times (B) the amount of percentage rent actually due under the Acquired Lease for such Acquired Store. The Company, upon the request of Purchaser Sub, shall promptly provide Purchaser Sub with such information as Purchaser Sub shall be required to submit to landlords under the Acquired Leases in connection with the payment of percentage rent with respect to the Acquired Stores.
(c) Purchaser Sub and the Company shall cooperate in good faith to resolve any dispute with respect to prorations. In the event Purchaser Sub and the Company are unable to resolve such dispute within twenty (20) Business Days after the Closing date such dispute arose, Purchaser Sub and the Company shall submit the items remaining for resolution in writing, together with such written evidence as Purchaser Sub or the Company may elect to include, to an Independent Accounting Firm. The Independent Accounting Firm shall, within twenty (20) Business Days of such submission, resolve any differences between Purchaser Sub and the Company and such resolution shall, in the absence of manifest error, be final, binding and conclusive upon each of the Parties. The costs, fees and expenses of the Independent Accounting Firm shall be applied first to any amounts due to Buyer borne equally by Purchaser Sub and then, the Company.
(d) Notwithstanding anything to the extent such rents or other income relate contrary in this Agreement, including this Section 2.6, all real property, personal property and similar ad valorem Taxes, if any, levied with respect to the Purchased Assets with respect to a taxable period ending beginning on or before the ClosingClosing Date and ending after the Closing Date (collectively, such rents or other income the “Apportioned Taxes”) shall be paid apportioned between the Company and Parent based on the number of days of such taxable period before and including the Closing Date (such portion of such taxable period, the “Pre-Closing Tax Period”) and the number of days of such taxable period after the Closing Date (such portion of such taxable period, the “Post-Closing Tax Period”). The Company shall be responsible for the proportionate amount of such Apportioned Taxes that is attributable to Seller the Pre-Closing Tax Period and such amount shall be an Excluded Liability, and Parent and Purchaser Sub shall be responsible for the proportionate amount of such Apportioned Taxes that is attributable to the Post-Closing Tax Period and such amount shall be an Assumed Liability. Any Apportioned Taxes shall be timely paid, and all applicable Tax Returns shall be timely filed, as provided by applicable Law. The paying Party (including through the use of any prepayment or credit or carryforward) shall be entitled to reimbursement from the non-paying Party for the non-paying Party’s portion of the Apportioned Taxes in accordance with this Section 2.6(d). Upon payment (or use of a prepayment or credit or carryforward) of any such Apportioned Taxes, the paying Party shall present a statement to the non-paying Party setting forth the amount of reimbursement to which the paying Party is entitled under this Section 2.6(d), together with such supporting evidence as is reasonably necessary to calculate the amount to be reimbursed. The non-paying Party shall make such reimbursement by wire transfer in immediately available funds within ten (10) days after end Business Days of receipt of such statement to an account designated by the paying Party. The provisions of this Section 2.6(d) shall survive the Closing Date until the expiration of the month in which statute of limitations applicable to any such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementApportioned Tax.
Appears in 4 contracts
Samples: Asset Purchase Agreement (Rite Aid Corp), Asset Purchase Agreement (Walgreens Boots Alliance, Inc.), Asset Purchase Agreement (Walgreens Boots Alliance, Inc.)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding (a) On the Closing DateDate all rent, common area charges, utility charges, real estate taxes, sales taxes on rent and other obligations under the basis of the actual number of days elapsed during the month in which Leases transferred at the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the ClosingEffective Time (collectively, the “Prorated Charges”). Rents Whenever possible, such prorations shall be based on actual, current payments by the Sellers or their Affiliates and other incometo the extent such actual amounts are not available, such prorations shall be estimated as of the Effective Time based on actual amounts for the most recent comparable billing period. When the actual amounts become known, such prorations shall be recalculated by Buyer and the Sellers, and Buyer or the Sellers, as the case may be, promptly (but not later than 10 Business Days after notice of payment due and delivery of reasonable supporting documentation with respect to such amounts) shall make any additional payment or refund so that the correct prorated amount is paid by each of Buyer and the Sellers.
(b) Percentage rent payable under each Lease shall be prorated at the end of the current lease year for each Lease, and the percentage rent payable, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten by Buyer when due and the Sellers shall promptly reimburse Buyer a portion thereof determined by multiplying (10A) days after end a fraction, the numerator of which is the amount of the month in Sellers’ or their Affiliates’ gross annual sales at such Store from the first day of such lease year to (and excluding) the Closing Date, and the denominator of which is the sum of Buyer’s and its Affiliates’ and the Sellers’ and their Affiliates’ gross annual sales at such amounts were collectedStore for the entire lease year, times (B) the amount of percentage rent actually due under the Lease for such Store. The Sellers, upon the request of Buyer, shall promptly provide Buyer with such information as Buyer shall incur no obligation be required to Seller submit to landlords under the Leases in connection with the payment of percentage rent with respect to the Stores.
(c) Buyer and the Sellers shall cooperate in good faith to resolve any dispute with respect to prorations. In the event Buyer and the Sellers are unable to resolve such dispute within 20 Business Days after the date such dispute arose, Buyer and the Sellers shall submit the items remaining for Buyer's failure resolution in writing, together with such written evidence as Buyer or the Sellers may elect to collect include, to an Independent Accounting Firm. The Independent Accounting Firm shall, within 20 Business Days of such rentals or other incomesubmission, resolve any differences between Buyer and the Sellers and such resolution shall, in the absence of manifest error, be final, binding and conclusive upon each of the parties. All security The costs, fees and any other refundable deposits paid by tenants to Seller pursuant to tenant leases expenses of the Independent Accounting Firm shall be delivered borne equally by certified funds to Buyer at and New Diamond. For purposes of this Agreement the Closing or, at Seller's option, credited to “Independent Accounting Firm” means a nationally recognized accounting firm agreed upon by Buyer against and the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementSellers.
Appears in 4 contracts
Samples: Asset Purchase Agreement, Asset Purchase Agreement (Albertsons Inc /De/), Asset Purchase Agreement (Supervalu Inc)
Prorations. The following items shall be prorated between Buyer the Seller and Seller the Purchaser as of 11:59 p.m. local time of the day immediately preceding the Closing Date; such prorations favoring the Purchaser - 14 - shall reduce the Purchase Price payable by the Purchaser at the Closing, and such prorations favoring the Seller shall increase the Purchase Price payable by the Purchaser at Closing:
9.4.1. Rents. Rents, additional rents, charges for taxes and insurance premiums or for escalations thereof, if any, property operating expense contributions, revenues from vending machines and washers and dryers, swimming pool fees and other income of the Property (other than any unapplied security and other deposits) collected by the Seller from each tenant under a Lease. Any rent and other income collected by either the Seller or the Purchaser during the month of the Closing shall be applied first against the rent and other income due for such month under the respective Lease. The Seller may, at the Seller's sole cost and expense, pursue any claims under any of the Leases and file lawsuits for past due rent or other charges, but the Seller may not exercise any rights or remedies to terminate any Lease or to dispossess any tenant thereunder. The Purchaser agrees, however, that if (i) any tenant is in arrears on the basis Closing Date in the payment of rent or other charges under its Lease as shown on the updated Rent Roll delivered at the Closing and (ii) at the time of the actual number Purchaser's receipt of days elapsed during any rental or other payment from such tenant after the end of the month in which the Closing occurs: general , such tenant is, or after application of a portion of such payment will be, current under its Lease in the payment of all accrued rental and special county other charges that do not become due and city real property taxes and special assessments (collectively, "Taxes") for payable until the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which month after the Closing occurs, with due allowance to be made for Date or thereafter and in the maximum available discount or payment of any other exemptions obligations of such tenant to the extent permissible for said yearPurchaser, then the Purchaser shall refund to the Seller, out of and to the extent of the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period such payment remaining after the Closing, then Buyer Purchaser deducts therefrom any and Seller shall adjust the actual Taxes between Buyer all sums due and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition owing to the foregoing apportionments, Seller shall receive all rents it from such tenant from and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all an amount up to the full amount of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after any arrearage existing on the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementDate.
Appears in 4 contracts
Samples: Purchase and Sale Agreement (Brown Flournoy Equity Income Fund LTD Partnership), Purchase and Sale Agreement (Brown Flournoy Equity Income Fund LTD Partnership), Purchase and Sale Agreement (Brown Flournoy Equity Income Fund LTD Partnership)
Prorations. The following Purchase Price for the Properties shall be prorated between Buyer subject to prorations and Seller credits as follows to be determined as of 11:59 p.m. local time 12:01 a.m. on the Closing Date:
1. Rents Payable Under Tenant Leases. Any portion of any rents collected subsequent to the day immediately preceding Closing Date and properly allocable to periods prior to the Closing Date, on net of Purchaser's third-party costs of collection, if any, shall be paid, promptly after receipt, to the basis Seller, but subject to all of the actual number provisions of days elapsed during this Section; and any portion thereof properly allocable to periods subsequent to the month Closing Date, if any, shall be paid to Purchaser. Any amount collected from a tenant shall first be applied to such tenant's current monthly rental and then to past due amounts in the reverse order in which they were due. Any advance rental payments or deposits paid by tenants prior to the Closing occurs: general Date and special county and city real property taxes and special assessments (collectively, "Taxes") for applicable to the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration periods of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which time subsequent to the Closing occurs, with due allowance to be made for the maximum available discount Date and any security deposits or other exemptions amounts paid by tenants, together with any interest on both thereof to the extent permissible such interest is due to tenants, shall be credited to Purchaser on the Closing Date. No credit shall be given the Seller for accrued and unpaid rent or any other non-current sums due from tenants until said yearsums are paid.
2. Motel Room, Restaurant and Bar Revenues. Purchaser shall be entitled to all food service, bar, beverage and liquor revenues and charges and all revenues and charges from restaurant operations, Motel banquet and conference facility operations, and all other revenue of any kind attributable to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to same for the period before on and after 12:01 a.m. on the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the ClosingDate. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and Purchaser shall pay over to Seller all other expenses accrued or incurred, collections of accounts receivable in connection with the ownership Properties which have accrued as of Closing (the "Closing Accounts Receivable"). By no later than sixty (60) days after Closing, Purchaser shall pay to Seller an amount equal to the remaining Closing Accounts Receivable, minus those uncollectible Closing Accounts Receivable as agreed upon by Purchaser and Seller. Seller shall deliver to Purchaser or operation of Property before provide Purchaser a credit against the Purchase Price for the Properties in an amount equal to all guest reservation deposits held by the Motels for Motel guests arriving or staying after check-out time for the Motel on the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation . All collections of Property on or Motel receivables from any party after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts receivables due from such party which have accrued prior to Buyer Closing and then, second to the extent receivables due from such rents or other income relate to the period ending on or before the party which have accrued after Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 4 contracts
Samples: Purchase and Sale Agreement (Super 8 Economy Lodging Iv LTD), Purchase and Sale Agreement (Famous Host Lodging v Lp), Purchase and Sale Agreement (Famous Host Lodging v Lp)
Prorations. The following All income and expenses in connection with the operation of the Property shall be prorated between Buyer and Seller apportioned, as of 11:59 p.m. local time of (Eastern time) on the day immediately prior to the Closing Date, (the “Cut Off Time”) as if Purchaser were vested with title to the Property during the entire Closing Date, such that, except as otherwise expressly provided to the contrary in this Agreement, Seller shall have the benefit of income and the burden of expenses for the day preceding the Closing DateDate (including, without limitation, any deferred rent received after Closing which relates to a period prior Closing) and the Purchaser shall have the benefit of income and the burden of expenses for the Closing Date and thereafter (provided, however, that in the event that any of the Leases or subleases, if any, covering all or part of the Property provide that the tenants or subtenants thereunder are responsible for direct payment of any of the expenses and the tenants or subtenants are current with respect to such direct payment obligations, such expenses shall not be apportioned as between Seller and Purchaser):
(a) Property taxes (which for all purposes under this Article XI, shall include personal property taxes) as more particularly set forth below and in Section 11.3(b);
(b) Rents as and when collected including base rents, escalations, additional rent and percentage rent (“Rents”) as further described below;
(c) Water, sewer, gas, electric, vault and fuel charges, if any;
(d) Operating expenses for the Property including sums due or already paid pursuant to any Service Agreements;
(e) Amounts paid pursuant to all transferable licenses and permits, on the basis of the actual number of days elapsed during the month in fiscal year for which the Closing occurs: general and special county and city real property taxes and special assessments levied;
(collectively, "Taxes"f) Assessments but only for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available annual installment for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property ;
(or any portion of the Propertyg) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller Purchaser shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer a credit against the cash portion of the Purchase Price at Closing for the Closingamount of the termination fee paid by the tenants listed on Exhibit U (including the amount of such termination payments) in connection with Lease modification or termination agreements executed by such tenants; and
(h) Any other operating expenses or other items pertaining to the Property which are customarily prorated between a purchaser and a seller in comparable commercial transactions in the area in which the Property is located. Escrow Holder The provisions of this Section 11.2 shall not be concerned with any prorations that are to be made after survive the Closing pursuant to this Agreementand the delivery of the Deed.
Appears in 4 contracts
Samples: Purchase and Sale Agreement (Preferred Apartment Communities Inc), Purchase and Sale Agreement (Preferred Apartment Communities Inc), Purchase and Sale Agreement (Highwoods Realty LTD Partnership)
Prorations. The following 12.1. Rents (exclusive of delinquent rents, but including prepaid rents); refundable security deposits (which will be assigned to and assumed by Purchaser and credited to Purchaser at Closing); water and other utility charges; fuels; prepaid operating expenses; incentive fees paid pursuant to any laundry contract; provided, however, such fee shall only be prorated if actually received by Seller and only to the extent any fee was not used to improve the laundry facilities at the Property; real and personal property taxes and other similar items shall be prorated between Buyer and Seller adjusted ratably as of 11:59 p.m. local time of the day immediately preceding on the Closing Date, and credited to the balance of the cash due at Closing. Assessments payable in installments which are due subsequent to the Closing Date shall be paid by Purchaser. If the amount of any of the items to be prorated is not then ascertainable, the adjustments thereof shall be on the basis of the actual number of days elapsed during the month most recent ascertainable data. All prorations will be final except as to delinquent rent referred to in which Paragraph 12.2 below.
12.2. All basic rent paid following the Closing occurs: general Date by any tenant of the Property who is indebted under a lease for basic rent for any period prior to and special county and city real property taxes and special assessments (collectively, "Taxes") for including the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes Closing Date shall be based on the most recent official tax bills or notice deemed a "Post-Closing Receipt" until such time as all such indebtedness is paid in full. Within ten (10) days following each receipt by Purchaser of valuation available for the fiscal year in which the a Post-Closing occursReceipt, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and Purchaser shall pay such Post-Closing Receipt to Seller. Purchaser shall use its best efforts to collect all other expenses accrued or incurredamounts which, in connection with the ownership or operation of Property before the upon collection, would constitute Post-Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or Receipts hereunder. Within 120 days after the Closing Date, all Purchaser shall deliver to Seller a reconciliation statement of which rents, other income and expenses shall be prorated as of Post-Closing Receipts through the Closing. Rents and other income, if any, collected by Buyer first 90 days after the Closing Date. Upon the delivery of the Post-Closing Receipts reconciliation, Purchaser shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid deliver to Seller within ten (10) days after end any Post-Closing Receipts owing to Seller and not previously delivered to Seller in accordance with the terms hereof. Seller retains the right to conduct an audit, at reasonable times and upon reasonable notice, of Purchaser's books and records to verify the accuracy of the month in which such amounts were collected. Buyer Post-Closing Receipts reconciliation statement and upon the verification of additional funds owing to Seller, Purchaser shall incur no obligation pay to Seller for Buyersaid additional Post-Closing Receipts and the cost of performing Seller's failure to collect such rentals or other incomeaudit. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases Paragraph 12.2 of this Agreement shall be delivered by certified funds to Buyer at survive the Closing or, at Seller's option, credited to Buyer against and the cash portion delivery and recording of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementdeed.
Appears in 4 contracts
Samples: Agreement of Sale (Apple Residential Income Trust Inc), Sale Agreement (Balcor Realty Investors 83), Agreement of Sale (Apple Residential Income Trust Inc)
Prorations. (a) The following prorations relating to the Purchased Assets shall be prorated between Buyer made:
(i) Except as provided in Section 2.3(a)(v) and Seller as Section 2.3(a)(vi), in the case of 11:59 p.m. local time Taxes with respect to a Straddle Period, for purposes of Retained Liabilities, the day immediately preceding portion of any such Tax that is allocable to Sellers with respect to any Purchased Asset (including, for the avoidance of doubt, with respect to any Purchased Subsidiary) shall be:
(A) in the case of Taxes that are either (1) based upon or related to income or receipts, or (2) imposed in connection with any sale or other transfer or assignment of property (real or personal, tangible or intangible), other than Transfer Taxes, equal to the amount that would be payable if the taxable period ended on the Closing Date; and
(B) in the case of Taxes imposed on a periodic basis, or otherwise measured by the level of any item, deemed to be the amount of such Taxes for the entire Straddle Period (after giving effect to amounts which may be deducted from or offset against such Taxes) (or, in the case of such Taxes determined on an arrears basis, the basis amount of such Taxes for the actual immediately preceding period), multiplied by a fraction, the numerator of which is the number of days elapsed during in the month in which period ending on the Closing occurs: general Date and special county and city real property taxes and special assessments the denominator of which is the number of days in the entire Straddle Period. In the case of any Tax based upon or measured by capital (collectivelyincluding net worth or long-term debt) or intangibles, "Taxes"any amount thereof required to be allocated under this clause (i) for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions computed by reference to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion level of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before such items on the Closing Date. All determinations necessary to effect the foregoing allocations shall be made in a manner consistent with prior practice of the applicable Seller, and Buyer shall receive all rents Seller Group member, or Seller Subsidiary.
(ii) All charges for water, wastewater treatment, sewers, electricity, fuel, gas, telephone, garbage and other income accruing, and shall pay all other expenses accrued or incurred, in connection with utilities relating to the ownership or operation of Transferred Real Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other incomeClosing Date, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, with Sellers being liable to the extent such rents or other income items relate to the period ending on or before Pre-Closing Tax Period, and Purchaser being liable to the Closingextent such items relate to the Post-Closing Tax Period.
(b) If any of the foregoing proration amounts cannot be determined as of the Closing Date due to final invoices not being issued as of the Closing Date, Purchasers and Sellers shall prorate such rents or items as and when the actual invoices are issued to the appropriate Party. The Party owing amounts to the other income by means of such prorations shall be paid to Seller pay the same within ten thirty (1030) days after end delivery of a written request by the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementpaying Party.
Appears in 4 contracts
Samples: Master Sale and Purchase Agreement, Master Sale and Purchase Agreement, Master Sale and Purchase Agreement
Prorations. The following matters and items shall be apportioned between the parties hereto or, where applicable, credited in total to a particular party hereto, as of the Closing:
(a) Taxes, including, without limitation, real estate taxes and assessments, personal property, business, prepaid gaming and occupation taxes, if any (based on the most current available information), and water and sewer charges shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, or charged on the basis of applicable governmental records, and shall be readjusted when the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property bills are available pursuant to Section 13.10. Such taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available assessed for the fiscal year in shall be prorated as of the date on which the Closing occursxxxxxxxx are received with respect thereto, with due allowance to be made Seller being responsible for the maximum available discount or other exemptions taxes accrued with respect to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property periods before the Closing Date, and Buyer shall receive being responsible for all rents subsequent periods.
(b) Telephone and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses utility services shall be prorated as of the ClosingClosing Date. Rents and other incomeAll deposits, if any, collected made by Seller as security under any public service contract shall be credited to Seller if the same remain on deposit for the benefit of Buyer. Where possible, cut-off meter readings shall be secured for all utilities as of the Closing Date.
(c) Any amount prepaid or payable under any lease or option agreement shall be prorated at the Closing and any accrued rental and any percentage rental under space leases shall be prorated as and when collected. All security deposits held by Seller, including customer deposits held in the casino cage, shall be transferred to Buyer, and all obligations with respect to such security deposits shall be assumed by Buyer on the Closing Date.
(d) Fees paid or payable for transferable licenses and permits shall be prorated as of the Closing Date.
(e) With respect to the Business Assets and business operations then sold and conveyed to Buyer, Seller’s insurance shall be canceled on the Closing Date, and Seller shall retain all prepaid premiums and be responsible for any additional premiums due on or after the Closing shall be applied first Date due to any amounts due insurance audit or retrospective rating adjustments that were incurred prior to Buyer Closing and then, any payment of claims within the applicable deductibles required to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collectedthereunder. Buyer shall incur no obligation arrange for immediate effectiveness of Buyer’s own insurance coverage as of the Closing Date.
(f) On the Closing Date, such other items shall be prorated as are provided for in this Agreement or as are normally prorated and adjusted in the sale of a casino business, including, without limitation, all deposits and prepaid items that inure to Seller for Buyer's failure to collect such rentals or other income. All security the benefit of Buyer (including, but not limited to, prepaid insurance) and the interest on the Assumed Obligations and on any other refundable deposits paid obligations being assumed by tenants to Seller pursuant to tenant leases Buyer hereunder as of the Closing Date. In making apportionments, all prepaid rents and similar items shall be delivered by certified funds prorated on the basis of the number of days of occupancy before and after the time set for such adjustments to Buyer at be made, and all prepaid taxes, charges and impositions shall be prorated on the Closing basis of the number of days of the applicable tax year, or on the basis of unit costs or, at Seller's optionif this is not practicable, credited to Buyer against on the cash portion basis of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations number of days before and after that are to be made after the Closing pursuant to this Agreementtime.
Appears in 3 contracts
Samples: Asset Purchase and Sale Agreement (Herbst Gaming Inc), Asset Purchase and Sale Agreement (Herbst Gaming Inc), Asset Purchase and Sale Agreement (Herbst Gaming Inc)
Prorations. The following (a) Rents, assessments and real and personal property taxes, operating income and expenses (including without limitation, utilities) and, to the extent provided in Section 16(c)(iii) license fees, associated with the operation of the Assets, and current installments of any LID assessments which are included in the Permitted Exceptions shall be prorated between Buyer and Seller as of 11:59 p.m. local time the Closing Date based upon actual days involved. Real and personal property taxes and operating expenses shall be prorated on the basis of the day immediately preceding best information available as of Closing. If after Closing real or personal property taxes or other operating expenses or income are determined to be different from those apportioned at Closing, then the parties shall, within thirty (30) days of such determination, promptly adjust the prorated amount to actual by payment from the party who paid too little or received too much of a credit at Closing. If the Real Property is revalued as a result of the sale transaction, there shall be no additional proration of real and personal taxes as a result of the sale transaction;
(b) all expenses, other than the payroll and employee benefits covered in Section 19 of this Agreement, related to the ownership or operation of the Assets (including but not limited to the obligations under the Contracts assumed by Buyer), shall be prorated as of the Closing Date with Seller responsible therefor for the period prior to the Closing Date and with Buyer responsible therefor for the period from and after the Closing Date;
(c) if applicable, Buyer shall pay any filing fees and other costs associated with Seller’s or Buyer’s compliance with the Antitrust Improvements Act of 1976 (the “HSR Act”) as the same relates to the transaction provided for herein or in the Related Agreements; and
(d) All prorations shall be made on the basis of the actual number of days of the year and month which have elapsed during the month in which as of the Closing occurs: general Date. The amount of proration shall be adjusted in cash after the Closing, as and special county when complete and city real property taxes accurate information becomes available. Seller and special assessments Buyer shall cooperate in making post-Closing adjustments to prorations other than those described in Section 16(b) above, within thirty (collectively30) days following Closing and, "Taxes"if and to the extent possible, it shall make adjustments with respect to the prorations described in Section 16(b) within ninety (90) days following Closing; and
(e) Buyer and Seller agree that the following shall not be subject to proration at Closing:
(i) no provision is made for the tax period then proration of water charges, sewer, electricity, fuel charges, utility charges, refuse, solid waste disposal charges, telephone, gas or other utility charges as Seller shall terminate its account with the providers of all such services as of the Closing Date and Buyer shall, prior to the Closing Date, make application to the providers of such services for the continuation of such services in effect the name of Buyer. It is anticipated that in connection with all such services the meters will be read on or about the Closing Date and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes the Seller shall be based responsible for paying the bills for such services accruing on and prior to the most recent official tax bills or notice of valuation available Closing Date and Buyer shall be responsible for the fiscal payment of all such charges accruing after the Closing Date;
(ii) no provision has been made for the proration of premiums for any insurance policies relating to the Property whether for liability, fire, theft, damage or other casualty, and Seller shall terminate such policies as of the date of Closing. Buyer shall be responsible for obtaining as of the date of Closing all insurance necessary to insure Buyer for liability, theft, fire, and casualty; and
(iii) no provision has been made for the proration of any license fees paid by Seller for the year in which the Closing occurs, with due allowance to be made for occurs unless Buyer obtains the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or benefit of any portion such license fees as part of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurredits licensure application process, in connection with which case the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses same shall be prorated as of at closing based on the Closing. Rents and other income, if any, collected benefit derived by Buyer after each party from the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits fees so paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 3 contracts
Samples: Purchase and Sale Agreement (Emeritus Corp\wa\), Purchase and Sale Agreement (Emeritus Corp\wa\), Purchase and Sale Agreement (Emeritus Corp\wa\)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date:
(a) All taxes, on assessments and the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated on an accrual basis in accordance with generally accepted accounting principles with Seller responsible for all taxes, assessments and expenses and entitled to all income for the period prior to the Closing Date and the Buyer responsible for all taxes, assessments and expenses and entitled to all income for the period as of and subsequent to Closing Date. Notwithstanding the foregoing, Seller will satisfy any special assessments as of Closing.
(b) Buyer will receive a credit for the prorated amount of all rent (including Operating Expense as defined below) due prior to the Closing Date. Rents and other incomeNo prorations shall be made at Closing in relation to delinquent rents existing, if any, collected as of the Closing Date, nor for required tenant expense reimbursements which are not due as of the Closing Date; instead such items shall be prorated if and when received by Buyer, with (i) Buyer agreeing to use its good faith efforts to collect all amounts due and promptly forward Seller’s portion to Seller upon any such collection, (ii) Seller agreeing to cooperate with Buyer’s reasonable requests for information regarding prior lease histories and expense information, and (iii) both parties agreeing to provide reasonable information to the other as to the efforts of the reporting party. With regard to delinquent rentals and expense reimbursements, Seller shall not have the right to communicate with said tenants for collection of rent or other matters relating to the leases from and after the Closing. Buyer shall make a good faith attempt to collect such delinquent rentals and expense reimbursements after the Closing (although Buyer shall not be required to institute any eviction nor any suit or collection procedures for delinquencies), but all rents and expense reimbursements shall be applied first to any amounts due reasonable out-of-pocket expenses which Buyer may have incurred in collecting the delinquent rents and/or expense reimbursements and then to the rents and expense reimbursements owing to Buyer and then, before being applied to the extent such rents or other income relate any delinquencies which were owed to the period ending on or before Seller at Closing. If Buyer collects any delinquent rentals and/or expense reimbursements after the Closing, such rents or other income amounts owed to Seller based on the immediately preceding sentence shall be paid remitted to Seller within ten fifteen (1015) days after end from receipt by Buyer.
(c) Seller shall prepare a reconciliation as of the month in Closing Date of the amounts of all xxxxxxxx and charges for common area operating expenses or similar charges and tax escalations owed under the leases (collectively, “Operating Expenses”), which reconciliation shall include accurate information reasonably detailing such billing and charges. If more amounts were collected. have been expended for Operating Expenses than have been collected from tenants for Operating Expenses, Buyer shall incur no obligation pay such difference to Seller at Closing as an addition to the Purchase Price. If more amounts have been collected from tenants for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Operating Expenses than have been expended for Operating Expenses, Seller pursuant to tenant leases shall be delivered by certified funds will pay to Buyer at the Closing orClosing, at Seller's option, credited to Buyer as a credit against the cash portion Purchase Price, such excess collected amount. Buyer and Seller agree that such proration of the Purchase Price Operating Expenses at the ClosingClosing will fully relieve Seller from any responsibility to tenants and Buyer for such matters. Escrow Holder shall not In this regard, Buyer will be concerned with any prorations that are to be made solely responsible, from and after the Closing pursuant Date, for (i) collecting from tenants the amount of any outstanding Operating Expenses for periods before and after the Closing and (ii) where appropriate, reimbursing tenants for amounts attributable to Operating Expenses, as may be necessary based on annual reconciliations for Operating Expenses.
(d) If any errors or omissions are made at the Closing regarding prorations, the parties shall make the appropriate corrections promptly after the discovery thereof. The provisions of this AgreementSection 5.5 shall survive the Closing.
Appears in 3 contracts
Samples: Purchase and Sale Agreement, Purchase and Sale Agreement (Universal Health Realty Income Trust), Purchase and Sale Agreement (Universal Health Realty Income Trust)
Prorations. 5.4.1 The following shall be prorated between Buyer Seller and Seller Purchaser as of 11:59 p.m. local time of the day immediately preceding 12:01 a.m. on the Closing Date, Date (on the basis of the actual number of days elapsed during over the applicable period):
(a) All real estate taxes, water charges, sewer rents, vault charges and assessments on the Property on the basis of the fiscal year for which assessed. In no event shall Seller be charged with or be responsible for any increase in the taxes on the Property resulting from the sale of the Property or from any improvements made or leases entered into on or after the Closing Date. If any assessments on the Property are payable in installments, then the installment for the current period shall be prorated (with Purchaser assuming the obligation to pay any installments due after the Closing Date).
(b) Subject to this Section 5.4.1(b), all fixed rent and regularly scheduled items of additional rent under the Leases, and other tenant charges if, as and when received. Rent for the month of Closing actually collected by Seller shall be prorated between Purchaser and Seller with Purchaser receiving rent for the day of Closing. Seller shall deliver or provide a credit in an amount equal to all prepaid rentals for periods after the Closing Date and all cash security or other deposits (to the extent the foregoing were made by tenants under the Leases and are not applied or forfeited prior to the Closing Date) to Purchaser on the Closing Date. Seller shall deliver to Purchaser at Closing any tenant security deposits which are held in the form of letters of credit. Rents which are “delinquent” (i.e., due but not paid) as of the Closing Date (the “Delinquent Rent”) shall not be prorated on the Closing Date. Purchaser shall deliver or provide a credit in an amount equal to seventy-five percent (75%) of the Delinquent Rent to Seller on the Closing Date, and all rights to receive such Delinquent Rent shall be assigned to Purchaser.
(c) If any tenant of the Property is obligated to pay percentage rent based upon the calendar year or lease year in which the Closing Date occurs (the “Percentage Rent Year”), Purchaser shall, within thirty (30) days after receipt of such payment with respect to the Percentage Rent Year, remit to Seller that portion which is equal to the number of days which elapsed between the commencement date of the Percentage Rent Year for each such tenant, and the Closing Date, and the total number of days in such Percentage Rent Year. If Seller has received payments of percentage rent based on any Percentage Rent Year in which the date of Closing occurs: general , in excess of Seller’s share as calculated as set forth above in this Section 5.4.1(c), it shall promptly pay such excess to Purchaser. If any tenant of the Property is obligated to reimburse Seller for additional rental type items which are billed to the tenants on an estimated basis, then Seller shall prepare a reconciliation of such amounts prior to the Closing Date and special county shall provide Purchaser with a credit for any amounts allocable to periods following the Closing Date.
(d) All operating expenses customarily apportioned between sellers and city purchasers of real estate properties similar to the Property and located in the same geographic area as the Property.
(e) Charges and payments under the Assigned Contracts assigned to Purchaser pursuant to the Assignment and Assumption of Contracts.
(f) Any prepaid items, including, without limitation, fees for licenses which are transferred to Purchaser at the Closing and annual permit and inspection fees.
(g) Utilities, including, without limitation, telephone, steam, electricity and gas, on the basis of the most recently issued bills therefor, subject to adjustment after the Closing when the next bills are available, or if current meter readings are available, on the basis of such readings, it being the intent of the parties that Seller shall use commercially reasonable efforts to cause meter readings to be completed such that all utility bills will be paid by Seller relating to periods up to the Closing Date by Seller as of the Closing Date.
(h) Deposits with telephone and other utility companies, and any other persons or entities who supply goods or services in connection with the Property if the same are assigned to Purchaser at the Closing, which shall be credited in their entirety to Seller.
(i) Personal property taxes, if any, on the basis of the fiscal year for which assessed.
(j) Permitted administrative charges, if any, on those tenants’ security deposits transferred by Seller pursuant to the Assignment and Assumption of Leases.
(k) Taxes payable by Seller relating to operations of the Property, including, without limitation, business and occupancy taxes and special assessments sales taxes, if any.
(collectivelyl) Such other items as are customarily apportioned between sellers and purchasers of real properties of a type similar to the Property and located in the same geographic area as the Property subject to Section 7.2.3(a) hereof.
(m) If Purchaser shall be assuming the Existing Financing, "Taxes"interest payable on the Existing Financing.
(a) If any of the items described in Section 5.4.1 hereof cannot be apportioned at the Closing because of the unavailability of information as to the amounts which are to be apportioned or otherwise, or are incorrectly apportioned at Closing or subsequent thereto, such items shall be apportioned or reapportioned, as the case may be, as soon as practicable after the Closing Date or the date such error is discovered, as applicable; provided that (i) with the exception of any item required to be apportioned pursuant to Section 5.4.1(a), (b) or (g), neither party shall have the right to request apportionment or reapportionment of any such item at any time following the one hundred eightieth (180th ) day after the Closing Date and (ii) with respect to the items required to be apportioned pursuant to Section 5.4.1(a), (b) or (g), neither party shall have the right to request apportionment or reapportionment of any such item at any time following the one (1) year anniversary of the Closing Date. If the Closing shall occur before a real estate or personal property tax rate or assessment is fixed for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to the apportionment of taxes at the Closing shall be made upon the basis of the tax rate or assessment for the maximum available discount or other exemptions preceding fiscal year applied to the extent permissible latest assessed valuation. Promptly after the new tax rate or assessment is fixed, the apportionment of taxes or assessments shall be recomputed and any discrepancy resulting from such recomputation and any errors or omissions in computing apportionments at Closing shall be promptly corrected and the proper party reimbursed, which obligations shall survive the Closing.
(b) If Purchaser shall be assuming the Existing Financing, Purchaser shall be given a credit at the Closing for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion then current principal balance of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer Existing Financing and Seller shall adjust be given a credit for the actual Taxes between Buyer amount of all security, escrows and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, deposits held in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, Existing Financing (to the extent not replaced by Purchaser or released by Existing Lender). Seller agrees to provide Purchaser with a list of all such rents or other income relate to security, escrows and deposits currently held by Existing Lender, together with the period ending on or before the Closingapproximate current balances thereof, such rents or other income shall be paid to Seller within ten five (105) days after end following the date of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
5.4.3 The provisions of this Section 5.4 shall survive the Closing.
Appears in 3 contracts
Samples: Contract of Sale (Strategic Storage Trust, Inc.), Contract of Sale (Strategic Storage Trust, Inc.), Contract of Sale (Strategic Storage Trust, Inc.)
Prorations. The following shall be prorated between Buyer and Seller as (a) As of 11:59 p.m. local time of the day immediately preceding the Closing Date, each Subsequent Closing Date and the Distribution Center Closing Date (as applicable) all items set forth on the basis Section 2.11 of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses Disclosure Schedules shall be prorated as of the Closing, such Subsequent Closing or Distribution Center Closing (collectively, the “Prorated Charges”). Rents Whenever possible, such prorations shall be based on actual, current payments by Seller or its Affiliates and other incometo the extent such actual amounts are not available, such prorations shall be estimated as of the Closing, such Subsequent Closing and Distribution Center Closing (as applicable) based on actual amounts for the most recent comparable billing period. When the actual amounts become known, such prorations shall be recalculated by Buyer and Parent, and Buyer or Parent, as the case may be, promptly (but not later than ten (10) Business Days after notice of payment due) shall make any additional payment or refund so that the correct prorated amount is paid by each of Buyer and Parent.
(b) Percentage rent payable under each Acquired Lease shall be prorated at the end of the current lease year for each Acquired Lease in accordance with the terms of the applicable Acquired Lease, and otherwise the percentage rent payable, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid by Buyer when due and Seller shall promptly reimburse Buyer a portion thereof determined by multiplying (A) a fraction, the numerator of which is the amount of Seller’s or its Affiliates’ gross annual sales at such Acquired Store from the first day of such lease year to Seller (and excluding) the Closing Date or the applicable Subsequent Closing Date (as applicable), and the denominator of which is the sum of Buyer’s and its Affiliates’ and Seller’s and its Affiliates’ gross annual sales at such Acquired Store for the entire lease year, times (B) the amount of percentage rent actually due under the Acquired Lease for such Acquired Store. Seller, upon the request of Buyer, shall promptly provide Buyer with such information as Buyer shall be required to submit to landlords under the Acquired Leases in connection with the payment of percentage rent with respect to the Acquired Stores.
(c) Buyer and Parent shall cooperate in good faith to resolve any dispute with respect to prorations. In the event Buyer and Parent are unable to resolve such dispute within ten twenty (1020) days Business Days after end the date such dispute arose, Buyer and Parent shall submit the items remaining for resolution in writing, together with such written evidence as Buyer or Parent may elect to include, to an Independent Accounting Firm. The Independent Accounting Firm shall, within twenty (20) Business Days of such submission, resolve any differences between Buyer and Parent and such resolution shall, in the absence of manifest error, be final, binding and conclusive upon each of the month in which such amounts were collectedparties. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security The costs, fees and any other refundable deposits paid by tenants to Seller pursuant to tenant leases expenses of the Independent Accounting Firm shall be delivered borne equally by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementand Parent.
Appears in 3 contracts
Samples: Asset Purchase Agreement (Rite Aid Corp), Asset Purchase Agreement (Freds Inc), Asset Purchase Agreement (Walgreens Boots Alliance, Inc.)
Prorations. The following (a) Subject to the terms and provisions of the Purchase Agreement, utility charges for the billing period in which the Closing Date occurs, real and personal property taxes attributable to the Facility, and any other items of revenue or expense attributable to the Facility (the “Prorated Items”) shall be prorated between Buyer Transferor and Seller New Operator as of 11:59 p.m. local time of the day immediately preceding the Closing Date, such that all items of income and expense accruing on the Closing Date shall be for the account of New Operator. In general, such prorations shall be made so as to reimburse Transferor for prepaid expense to the extent such expense is attributable to periods from and after the Closing Date and to charge Transferor for expenses accrued but unpaid as of the Closing Date. The intent of this provision shall be implemented by New Operator remitting to Transferor any invoices for Prorated Items that reflect a service date before the Closing Date and by New Operator assuming responsibility for the payment of any invoices for Prorated Items that reflect a service date after the Closing Date with any overage or shortage in payments by either party to be adjusted and paid as provided in Sections 1.8(b) and (c). Transferor agrees to assist in the orderly transfer of utilities, phone systems, alarm systems, and any other specialized equipment requiring dedicated lines and to provide to New Operator contact information for all requested services.
(b) All such prorations shall be made on the basis of the actual number of days elapsed during in the month in which the Closing occurs: general relevant accounting, billing or revenue period and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice information available to Transferor. Utility charges which are not metered and read as of valuation available for the fiscal year in which the Closing occurs, with due allowance to Date shall be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accruedestimated based on prior charges, and shall pay be re-prorated upon receipt of statements therefor.
(c) To the extent possible and based on reasonable estimates, the parties shall make all other expenses accrued or incurred, in connection with the ownership or operation of Property before prorations on the Closing Date, and Buyer . All amounts owing from one party hereto to the other party hereto that require adjustment after the Closing Date shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurredbe settled within thirty (30) days after the Closing Date or, in connection with the ownership or operation of Property on or event the information necessary for such adjustment is not available within said thirty (30) day period, then as soon thereafter as practicable; provided, however, that all such adjustments shall be made within one (1) year after the Closing Date.
(d) Within thirty (30) days after the Closing Date, all of which rents, other income and expenses New Operator shall be prorated as of transfer to Transferor an amount equal to any xxxxx cash remaining at the Closing. Rents and other income, if any, collected by Buyer after Facility on the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementDate.
Appears in 3 contracts
Samples: Operations Transfer Agreement (Adcare Health Systems Inc), Operations Transfer Agreement (Adcare Health Systems Inc), Operations Transfer Agreement (Adcare Health Systems Inc)
Prorations. The following All items of income and expense arising from the operation of the Stations with respect to the Purchased Assets and the Assumed Contracts on or before the close of business on the Closing Date shall be prorated for the account of the Seller and thereafter shall be for the account of the Purchaser. Proration of the items described below between Buyer the Seller and Seller the Purchaser shall be effective as of 11:59 p.m. p.m., local time time, on such date and shall occur as follows with respect to those rights, liabilities and obligations of the day immediately preceding Seller transferred to and assumed by the Purchaser hereunder.
(a) Liability for state and local taxes assessed on the Purchased Assets payable with respect to the tax year in which the Closing Date, Date falls and the annual FCC regulatory fee for the Stations payable with respect to the year in which the Closing Date falls shall each be prorated as between the Seller and the Purchaser on the basis of the actual number of days of the tax year elapsed during to and including such date.
(b) Prepaid items, deposits, credits and accruals such as water, electricity, telephone, other utility and service charges, lease expenses, license fees (if any) and payments under any contracts or utility services to be assumed by the month in Purchaser shall be prorated between the Seller and the Purchaser on the basis of the period of time to which such liabilities, prepaid items and accruals apply. All prorations shall be made and paid insofar as feasible on the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes Date; any prorations not made on such date shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following practicable (not to exceed 90 days) thereafter. The Seller and the Closing. In addition Purchaser agree to the foregoing apportionmentsassume, Seller shall receive pay and perform all rents and other income accruedcosts, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income liabilities and expenses shall be prorated as allocated to each of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing them pursuant to this AgreementSection 15.2.
Appears in 3 contracts
Samples: Asset Purchase Agreement (Hispanic Broadcasting Corp), Asset Purchase Agreement (Big City Radio Inc), Asset Purchase Agreement (Big City Radio Inc)
Prorations. (a) All items that affect the Business or the Purchased Assets and that relate, in whole or in part, to periods on or prior to the effective time of the Closing, will be apportioned as of the Closing Date (the “Proration Items”), and representatives of Seller and Buyer will, if practicable, examine all relevant books and records as of the Closing Date in order to make the determination of such apportionments. The following shall net amount of all Proration Items will be prorated between settled and paid on the Closing Date to the extent practicable, or as soon thereafter as is reasonably possible. In the event that the amount of any of the Proration Items is not known by Seller and Buyer at the Closing, the proration will be made based upon the amount of the most recent cost of such Proration Item to Seller. After Closing, Buyer and Seller as each will provide to the other prompt written notice of 11:59 p.m. local time of each invoice relating to any Proration Item so estimated. Within ten days thereafter, Buyer and Seller will make any payment to the day immediately preceding other that is necessary to compensate for any difference between the proration made at the Closing Date, on and the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be correct proration based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and invoice. Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first will each fully cooperate to any amounts due to Buyer and thenavoid, to the extent such rents legally possible, the payment of duplicate personal property taxes, and each will furnish, at the request of the other, proof of payment of any personal property taxes or other income relate documentation that is a prerequisite to avoiding payment of a duplicate tax.
(b) If either Buyer or Seller (a “Payor”) pays a Proration Item for which the other (a “Payee”) is obligated in whole or in part under this Section 7.6, the Payor will present to the period ending on Payee evidence of payment and a statement setting forth the Payee’s proportionate share of such Proration Item, and the Payee will promptly pay its share to the Payor. In the event either Buyer or before Seller (as applicable, a “Recipient”) receives payments, or the Closingbenefit of payments, such rents of a Proration Item to which the other (a “Beneficiary”) is entitled in whole or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to part under this Agreement, the Recipient will promptly pay such amount to the Beneficiary.
Appears in 3 contracts
Samples: Asset Purchase Agreement (Amish Naturals, Inc.), Asset Purchase Agreement (Amish Naturals, Inc.), Asset Purchase Agreement (Amish Naturals, Inc.)
Prorations. The following shall be prorated between Buyer Except as otherwise set forth in this Agreement, all taxes and Seller as of 11:59 p.m. local time other operating expenses and revenue of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the ClosingClosing Date. Rents and other income, if any, collected by Buyer after Taxes shall be prorated based upon the current year's tax taking into account the maximum available discount. If the Closing takes place and the current year's taxes are not fixed and the current year's assessment is available, taxes shall be applied first prorated based upon such assessment and the prior year's millage. If the current year's assessment is not available, then taxes shall be prorated on the prior year's tax taking into account the maximum available discount. In the event the tax proration is incorrect on the Closing Date because the property is reassessed for the tax year of the Closing by the governmental agency having jurisdiction over the Property, subsequent to any amounts due to Buyer and thenthe Closing Date, BUYER or SELLER shall be entitled, as the case may be, to the extent a reproration of such rents or other income relate taxes upon written request made to the period ending on other party. SELLER or before BUYER shall remit the Closing, such rents or other income shall be paid to Seller reproration adjustment amount requested within ten (10) days after end of request therefor. In the event SELLER or BUYER fails to remit the reproration amount requested within said ten (10) day period, the party seeking reimbursement shall be entitled to all costs of collection, including all attorneys' fees and costs incurred in collection thereof and the amount owing shall bear interest at the highest lawful rate until paid, it being acknowledged that this right shall survive Closing and delivery of the month Special Warranty Deed. Any rents received by SELLER in which such amounts were collectedrespect of the period after the Closing Date shall be promptly remitted to BUYER. Buyer With regard to delinquent rents, if any, BUYER shall incur no obligation not be held responsible for and BUYER shall not be required to Seller for Buyer's failure institute any proceedings whatsoever to collect such rentals or other incomedelinquent rents. However, all rents received by BUYER attributable to periods prior to the Closing Date shall be promptly remitted by BUYER to SELLER. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases rents collected after the Closing shall be delivered by certified funds first applied to Buyer at current rents due, then to rents for periods prior to the Closing or, at Seller's option, credited Date unless they are clearly intended by the tenant to Buyer against apply for the cash portion period prior to Closing in which event they shall be promptly remitted to SELLER. This obligation to remit shall survive the Closing and delivery of the Purchase Price Special Warranty Deed. SELLER shall deliver to BUYER at the Closing. Escrow Holder , copies of such statements, invoices bills and receipts as shall not be concerned with requested by BUYER to enable BUYER to verify the accuracy of the amounts of any prorations that are made pursuant to this paragraph. BUYER shall be credited at Closing with all advance rentals and tenant security deposits previously paid to SELLER. All prorations shall be made so that SELLER has the benefit of all income and the burden of all expenses up to and including the Closing Date and BUYER has the benefit of all income and the burden of all expenses after the Closing pursuant to this AgreementDate.
Appears in 3 contracts
Samples: Agreement of Sale (Commercial Assets Inc), Agreement of Sale (Asset Investors Corp), Agreement of Sale (Commercial Assets Inc)
Prorations. As promptly as reasonably practicable after the Closing:
(i) Buyers and Sellers shall prorate all installments of real property Taxes and personal property taxes, special assessments, water and sewer rentals, vault charges and other real property related charges incurred in the Ordinary Course of Business with respect to the Owned Real Property and, to the extent constituting an obligation under the applicable Leases, the Leased Real Property leased pursuant to such Leases. The following Parties shall calculate such proration using current year real estate Tax information, if available. If current year Tax information is not available, then the Parties shall calculate such proration using the amount due and payable in the year immediately preceding the year of Closing, subject to subsequent adjustment when the current Tax bills become available. Sellers’ prorated portion of such Taxes shall be included in the calculation of the Tax Amount. At such time as Tax bills for such property Taxes are received, the Parties shall calculate any necessary adjustments to such prorations in order to reflect differences between such estimated Taxes and the actual Taxes as reflected in such Tax bills, and the Parties shall make the necessary payments to each other to account for such differences, which payments shall be treated as a supplemental Purchase Price Adjustment. All property and similar Taxes (but not including any Transfer Taxes covered by Section 6(h), and for the sake of clarity, not including any income Taxes) shall be prorated between Buyer Sellers and Seller Buyers as of 11:59 p.m. local time of the day immediately preceding the Closing Date. For this purpose, the amount of property and similar Taxes for any Tax year or period with respect to Sellers, the Target Companies and Tiwest that begins on or before and ends after the basis Closing Date (a “Straddle Period”) allocated to the period prior to the end of the actual Closing Date shall be the product of (A) the amount of such property and similar Taxes due for the entire Straddle Period and (B) a fraction with the numerator equal to the number of days elapsed during in the month in which Straddle Period up to and including the Closing occurs: general Date and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then denominator equal to the number of days in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies)the entire Straddle Period. Proration of Taxes Buyers shall be based on responsible for and control the most recent official tax bills or notice conduct of valuation available for the fiscal year in which the Closing occursany audit, with due allowance to be made for the maximum available discount litigation or other exemptions Tax proceeding with respect to property Taxes for any Straddle Period.
(ii) For purposes of this Section 6(e), the amount of any expense credited by one Party to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits deemed an expense paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementParty.
Appears in 2 contracts
Samples: Asset and Equity Purchase Agreement (Tronox Inc), Asset and Equity Purchase Agreement (Huntsman International LLC)
Prorations. The (a) Contributor and the Partnership shall jointly prepare not less than five (5) days prior to the Closing Date, a closing settlement statement estimating the closing prorations and adjustments of the following shall items (without duplication of one another or any other provision hereof):
(i) All rents billed for the month in which the Closing Date occurs will be prorated between Buyer and Seller as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the “Cut-Off Time”) based on the amounts billed and the actual number of days in the month during which the Closing Date occurs; and Contributor will be entitled to such rent for the period on and before the Cut-Off Time, and the Partnership will be entitled to such rent for the period after the Cut Off Time. All rents payable by each tenant whose Lease commences on or after the Closing shall belong entirely to the Partnership, including any pre-paid rents received by Contributor or the Company. Should rent be received subsequent to Closing by the Partnership or the Company which belongs to Contributor, it will be promptly remitted to Contributor, and should rent be received subsequent to Closing by Contributor which belongs to the Partnership, it will promptly be remitted to the Partnership. If the Company collects any rent after the Closing Date from any tenant who was delinquent in the payment of rent as of the Closing Date, such rent shall be applied by the Company (1) first to the reimbursement of any cost or expense (including attorney fees) incurred by the Company or its agents in collecting such rent, (2) second, the remainder to the calendar month in which the Closing Date occurred, (3) third, the remainder to any calendar month or months following the calendar month in which the Closing Date occurred, until the tenant is current with respect to all rents payable after the Closing Date, and (4) finally any remainder to calendar months prior to the month in which the Closing Date occurred.
(ii) An amount equal to all cash tenant security deposits previously received by Contributor (or its predecessors as landlord under the Leases), to the extent not previously returned to such tenants or applied against rent or other obligations of tenants, will be credited to the Partnership.
(iii) Rent and other charges owed or paid by Contributor under any ground lease, if applicable, will be prorated as of the Cut-Off Time.
(iv) Personal property Taxes, gas, electric, steam, water and sewer charges, and other utility charges (utility charges will be prorated based on the last reading of meters prior to Closing performed at Contributor’s request, if possible) as of the Cut-Off Time.
(v) Real property Taxes will be prorated as of the Cut-Off Time.
(vi) Amounts owed or paid by Contributor under the Licenses will be prorated as of the Cut-Off Time.
(vii) Amounts owed or paid by Contributor under any reciprocal easement agreement will be prorated as of the Cut-Off Time.
(viii) Leasing commissions, tenant improvement allowances and other leasing costs for each Lease will be amortized over the term of the Lease in accordance with US GAAP. Leasing costs paid by the Company prior to the Cut-Off Time in excess of the portion of such costs amortized prior to the Cut-Off Time will be treated in accordance with US GAAP and credited to Contributor.
(ix) An amount equal to any utility deposits posted by the Company with utilities as of the Cut-Off Time will be credited to Contributor.
(x) An amount equal to any escrows posted by the Company with the Lenders pursuant to the Loan Documents will be credited to Contributor.
(xi) The principal amount of, and all accrued and unpaid interest on the Loan as of the Cut-Off Time will be credited to the Partnership in computing the Capital Contribution Amount.
(xii) Except as otherwise provided herein, all other cash, including working capital, bank account balances or other cash-equivalents, held by the Company as of the Cut-Off Date will be credited to Contributor (and will continue to be held by the Company).
(xiii) Except as otherwise provided herein, all other liabilities of the Company, current or contingent (e.g., accrued expenses or accounts payable), as of the Cut-Off Time will be credited to the Partnership, to the extent that such liabilities would be required to appear on the Company’s balance sheet prepared in accordance with GAAP.
(xiv) Except as otherwise provided herein, all other pre-paid expenses of the Company as of the Cut-Off Time will be credited to Contributor.
(xv) All amounts for costs of Closing in accordance with Section 5.2.
(xvi) Such other matters as are customarily prorated in similar transactions where the Property is located will be prorated as of the Cut-Off Time.
(b) Prorations and/or adjustments shall be effected at Closing by increasing the Capital Contribution Amount (if the prorations and/or adjustments result in a net credit to Contributor) or by reducing the Capital Contribution Amount (if the prorations and/or adjustments result in a net credit to the Partnership).
(c) If the actual amounts of the items prorated and/or adjusted are not known as of the Closing Date, the prorations and/or adjustments will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations and/or re-adjustments will be made on the basis of the actual number figures, and a final computation of the Capital Contribution Amount will be made by Contributor and the Partnership not later than the date that is one hundred eighty (180) days elapsed following the end of the calendar year during which Closing occurs.
(d) If the month Closing Date shall occur before the real property tax rate is fixed, the apportionment of Taxes shall be upon the basis of the tax rate for the preceding fiscal year applied to the latest assessed valuation. If, subsequent to the Closing Date, Taxes are determined to be higher or lower than those that were apportioned, a new computation shall be made, and a re-proration or adjustment of the Capital Contribution Amount will be effected.
(e) Percentage rent, if any, payable under any Lease shall be prorated with respect to the full lease year or other applicable full period provided for under the Lease in which the Closing occurs: general occurs on a per diem basis as and special county and city real property taxes and special assessments (collectivelywhen collected. The proration of percentage rent, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes any, shall be based on the most recent official tax bills or notice of valuation available aggregate sales for the fiscal full lease year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to applicable full period under the extent permissible for said yearLease, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either by attributing tenant’s specific periodic sales amount to the period before the Closing or to Date and the period after the Closing, then Buyer from and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income Date and expenses shall be prorated as of then applying the Closingapplicable percentage rent percentage. Rents and other income, if any, Any percentage rent collected by Buyer the Company after Closing (including any percentage rent which is delinquent) and pertaining to (i) an entire lease year or accounting period of a tenant under a Lease which ends on a date prior to the Closing shall be applied first to any amounts due to Buyer and then, Date or (ii) that portion of a lease year or accounting period of such tenant covering a period prior to the extent Closing Date where such rents lease year or other income relate accounting period begins prior to the period ending on or before the ClosingClosing Date and ends thereafter, such rents or other income shall in both cases be paid to Seller within ten (10) days Contributor promptly after end of receipt by the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementCompany.
Appears in 2 contracts
Samples: Limited Partnership Agreement (Phillips Edison - ARC Shopping Center REIT Inc.), Limited Partnership Agreement (Phillips Edison - ARC Shopping Center REIT Inc.)
Prorations. The following Except for the income and obligations which are the subject of the TBA, Seller shall be prorated entitled to all income earned or accrued and shall be responsible for all liabilities and obligations incurred or payable in connection with the operation of the Stations through the close of business on the day preceding the Closing Date. Buyer shall be entitled to all income earned or accrued and shall be responsible for all liabilities and obligations incurred or payable in connection with the operation of the Stations after the close of business on the day preceding the Closing Date. All overlapping items of income or expense for which Buyer is not entitled to receive or responsible to pay under the TBA shall be apportioned between Seller and Buyer and Seller as of 11:59 p.m. local time the close of business on the day immediately preceding the Closing Date, in accordance with generally accepted accounting principles with the understanding that Buyer shall only have responsibility for the Assumed Obligations. Items to be apportioned include, but are not limited to, the following:
(a) Prepaid expenses arising from payments made for goods or services prior to the Closing Date if all or part of the goods or services have not been received or used prior to the Closing Date (for example, rents paid in advance for a rental period extending beyond the Closing Date);
(b) Liabilities, customarily accrued, arising from expenses incurred but unpaid as of the close of business on the basis of the actual number of days elapsed during the month in which day preceding the Closing occurs: general Date (for example, frequency discounts; rent; and special county and city real sales commissions); and
(c) Personal property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions utility charges relating to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property Stations. Within thirty (or any portion of the Property30) and allocable either to the period before the Closing or to the period days after the Closing, then Buyer and shall deliver to Seller shall adjust a statement setting forth in reasonable detail the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition basis for prorations pursuant to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Datethis Section, and Buyer shall receive all rents and other income accruingpay to Seller, and or Seller shall pay all other expenses accrued to Buyer, as the case may be, any net amount due as the result of the proration statement (or, if there is a dispute, the undisputed amount thereof). If Seller disputes Buyer's determinations, or, if at any time after delivery of Buyer's statement of determinations any party determines that any item included in the proration is inaccurate or incurredthat an additional item should be included in the prorations, in connection the parties shall confer with regard to the ownership or operation matter and an appropriate adjustment and payment shall be made as agreed upon by them or, if they are unable to resolve the matter, by a firm of Property independent certified public accountants mutually agreeable to the parties, whose decision on or after the Closing Date, all of which rents, other income matter shall be binding and whose fees and expenses shall be prorated as of the Closing. Rents and other income, if any, collected borne equally by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementthem.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Nassau Broadcasting Corp), Asset Purchase Agreement (Nassau Broadcasting Corp)
Prorations. The following shall be prorated between Buyer (a) For purposes of determining the Purchase Price, personal property and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes Taxes, fees with respect to any Transferable Permits, rents under any leases of real or personal property, or other similar expenses, that are not due or assessed until after the Effective Time but which are attributable in whole or in part to any period commencing prior to the Effective Time, and special assessments (collectively, "Taxes") for any other amounts that by the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration terms of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance this Agreement are to be made for allocated between the maximum available discount or other exemptions to the extent permissible for said yearParties, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall will be prorated as of the Closing. Rents and other incomeEffective Time, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, with Seller liable to the extent such rents items relate to any period prior to the Effective Time, and Buyer liable to the extent such items relate to any period from and after the Effective Time. If the actual amounts to be prorated are not known, Seller shall include an itemized estimate in the Post-Closing Adjustment Statement based upon the most recent available rates, assessments, valuations, or other income relate to data, and the period ending on or before Parties shall adjust the Closing, such rents or other income shall be amounts paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing orto reflect such prorations. Any prorations shall be made so as to avoid duplication of any amounts, at Seller's optionand will be adjusted to properly take into account any amounts thereof used in determining the Purchase Price.
(b) The proration of all items under this Section 3.4 will be recalculated by Buyer within a reasonable period of time following the date upon which the actual amounts become available to Buyer. Buyer will notify Seller of such recalculated amounts, credited and will provide Seller with all documentation relating to Buyer against the cash portion such recalculations, including tax statements and other notices from third parties. The Parties will make such payments to each other as are necessary to reconcile any estimated amounts prorated as of the Purchase Price at Effective Time with the Closing. Escrow Holder shall not be concerned with any prorations that are final amounts to be prorated. Seller and Buyer agree to furnish each other with such documents and other records as may be reasonably requested in order to confirm all proration calculations made after the Closing pursuant to this AgreementSection 3.4.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Algonquin Power & Utilities Corp.), Asset Purchase Agreement (Atmos Energy Corp)
Prorations. The following shall items are to be prorated apportioned between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding before the Closing Date, except as otherwise set forth below:
(a) Rents and Charges. Basic rents, percentage rents and payments or reimbursements for taxes, utilities and operating expenses and all other charges or reimbursables as and when collected under the Leases including without limitation charges for any special services provided to any Tenant, overtime HVAC or special cleaning (collectively, the "Rents"); provided, however, that all Rents collected after the Closing under the Leases shall be applied, on a Lease by Lease basis and unless any Tenant specifies otherwise with respect to a payment, first, to satisfy obligations attributable to the payment period in which Closing occurs, second, in payment of Rents due and payable for the period after the Closing Date, and third, after Rents for all current periods have been satisfied in full, in payment of Rents in arrears for the periods prior to the payment period in which the Closing occurs. At Closing, Seller shall assign to Buyer all of its claims or causes of action against existing Tenants, if any, provided, however, that if any such Tenant files a counterclaim or initiates an action against Seller which is not covered by Buyer's indemnity provided for under Section 33 below, then Seller shall retain such claims or causes of action (or such claims or causes of action shall be reassigned to Seller) to the extent necessary for Seller to assert a complete setoff or other defense against such Tenant's counterclaim or other action. If at the time of Closing (as reflected in a schedule to be delivered by Seller at Closing of all amounts known to Seller as due and payable by any Tenant for the period prior to Closing but uncollected as of Closing, whether or not past due) or thereafter there are Rents owed by Tenants to Seller, then Buyer will make commercially reasonable efforts, without suit, to collect the same for the account of Seller and any such Rents, if received, shall have been received by Buyer for the account of Seller and will be remitted by Buyer to Seller within 15 days of receipt. If, however, Buyer, in its sole discretion, elects to sxx any Tenant for Rents in arrears for periods after Closing, Buyer shall include in such suit (and, upon recovery, pay to Seller) amounts due Seller from such Tenant (net of any prior collections and payments to Seller) for periods prior to Closing and Seller shall be responsible for incremental legal fees and expenses, if any, reasonably incurred by Buyer's counsel in prosecuting such action on Seller's behalf at the same time it is prosecuting such action on Buyer's behalf. Notwithstanding the foregoing, as to any Rents due Seller which are unpaid as of the date which is 45 days after such Rents are due, at Seller's option upon written notice to Buyer, Seller may for its own account, take such action as it may deem advisable to recover such past due Rents including the exercise of all legal or equitable remedies (except that Seller may not exercise any right to terminate a Lease, evict a Tenant or attach any Rents that become due after Closing) and from and after the date Seller gives Buyer notice of the exercise of such right, that part of the Rents due Seller which Seller elects to collect shall be deemed reassigned to Seller without any further document or instrument, and Buyer shall be released from any further obligation to make any efforts to collect such amounts except to reasonably cooperate with Seller's collection efforts (and Seller further agrees promptly to deliver to Buyer copies of all correspondence and legal papers filed in connection with such recovery efforts by Seller). Subject to the foregoing, Buyer shall also provide Seller with a written report on a monthly basis setting forth the status of the billing and collection of the Rents attributable to all periods prior to Closing. Seller expressly agrees that if Seller receives any Rents directly from Tenants after the Closing Date, Seller shall remit same to Buyer (but only to the extent such Rents have not been reassigned to Seller as provided herein) within 15 days after receipt thereof and Buyer shall deliver to Seller the amount thereof, if any, to which Seller is entitled pursuant to the terms hereof within 15 days after receipt thereof. All prepaid Rents and charges for the period following the Closing and all cash security or other cash deposits of Tenants held by Seller shall be paid over (or credited) by Seller to Buyer at Closing. Buyer shall also provide Seller with a written report on a monthly basis setting forth the status of the billing and collection of the Rents attributable to all periods prior to Closing. Except as set forth herein, Seller shall not be entitled to collect or attempt to collect Rents from Tenants except those whose Leases or rights to possession under the Leases have been terminated and have vacated their premises.
(b) All percentage rentals received under the Leases for the year in which the Closing Date occurs shall be apportioned between Buyer and Seller pro-rata based on the percentage of such year the Project is owned by each. All other charges to or contributions by Tenants under the Leases for the period under such Leases which includes the Closing Date, including without limitation, payments or reimbursements, whether for taxes, utilities, other operating expenses or otherwise, shall be apportioned on the basis of the ratio which the expenses actually paid by each party for such period bears to the total of all expenses with respect to such period for which such payment was made by the Tenant. Such apportionments shall be adjusted as soon as practicable after the end of the current lease year, and at such time Buyer shall furnish Seller with statements in reasonable detail showing the calculation of such apportionments, rents and payments, and any adjustments shall be allocated for the portion to which it applies. If either Seller or Buyer shall have collected more than its share of such amounts payable under any Lease pursuant to this Section, such party shall promptly remit to the other the amount of such excess. If any Tenant is entitled to refunds of any such rents or charges, such refunds shall be paid by the party hereto that received such rents or charges.
(c) Real property taxes and assessments and refunds for the tax year in which the Closing occurs. In the event a final tax bxxx is not available for such year at the Closing, the required proration shall be made on the basis of the most recent available tax bxxx and a further proration shall be made between the parties when the tax bxxx for the tax year in which the Closing occurs becomes available. If any proceeding for certiorari or other proceeding to determine the assessed value of the Project or the real property taxes payable with respect to the Project shall have been commenced prior to, and is pending as of, the Closing Date (a "Tax Protest"), Buyer and Seller shall agree upon the certiorari counsel who shall continue the prosecution of such proceeding or proceedings to completion. Buyer shall have the authority to settle or compromise any claim relating solely to the tax year in which the Closing Date occurs and the tax years thereafter and to receive and deliver to Seller any real estate tax refunds or abatements due to Seller net of costs of collection and refunds due to Tenants. Buyer shall consult with Seller with respect to settling or compromising claims relating to the tax year in which the Closing Date occurs. Seller shall have the right to be promptly informed as to the status of such proceedings. Seller shall have the authority to settle or compromise any claim relating solely to any tax year prior to the tax year in which the Closing Date occurs and to keep all amounts received on such claims, net of any refunds due to Tenants. The parties agree to cooperate with each other, and to execute any and all documents reasonably requested by the other party, in furtherance of the foregoing.
(d) Fees and charges under such of the Service Contracts as are being assigned to and assumed by Buyer at the Closing, on the basis of the actual number periods to which such Service Contracts relate.
(e) Utility charges, including water, sewer, steam, electricity and gas, vault taxes and maintenance charges, if any, for sewers (other than those charges required to be paid directly to the utility companies by any Tenant under its Lease). In conjunction with such prorations, Seller will assign to Buyer all utility deposits which are assignable (and Seller shall be credited with such amounts) and notify, or cause to be notified, all utilities servicing the Project of days elapsed during the month change in which ownership and direct that all future bxxxxxxx be made to Buyer at the address of the Project with no interruption of service. Seller shall use its reasonable efforts to procure final meter readings for all utilities as of the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, Date and to the extent the tax have bills do not accurately reflect the actual Taxes assessed against the Property rendered directly to Seller.
(or any portion of the Propertyf) and allocable either At least three (3) business days prior to the period before the Closing or to the period after the Closing, then Buyer and Seller jointly shall adjust prepare a closing statement, subject to and in accordance with the actual Taxes between Buyer terms hereof, indicating the net amount due to either party as a result of the adjustments and Seller, outside prorations provided for herein. Any errors in the calculation of Escrow, apportionments shall be corrected or adjusted as soon as reasonably possible following practicable (but not more often than monthly) after the ClosingClosing Date. In addition If it is impracticable to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before apportion certain items hereunder on the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses such items shall be prorated apportioned and paid as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collectedsoon as practicable thereafter. Buyer shall incur no obligation agrees to Seller take necessary actions after Closing in a timely manner in order to make the adjustments and reprorations provided for hereunder, including, without limitation bxxxxxxx to Tenants and completion of Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller undertakings pursuant to tenant leases Subsection (b) above (other than collections) no later than April 30, 2000.
(g) The provisions of this Section 5.1 shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the survive Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (Carlyle Real Estate LTD Partnership Xiv /Il/), Purchase and Sale Agreement (Carlyle Real Estate LTD Partnership Xv)
Prorations. The following shall be prorated between Buyer Rents and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Dateany other amounts payable by Tenant, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectivelyand, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said yearnot otherwise paid directly by the Tenant under the Tenant Lease, personal property taxes, installment payments of special assessment liens, vault charges, sewer charges, utility charges and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (normally prorated operating expenses actually collected, billed or any portion paid as of the Property) and allocable either to the period before the date of Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the date of Closing and be adjusted against the Purchase Price due at the Closing, provided that within sixty (60) days after the Closing, Purchaser and Seller will make a further adjustment for such rents, taxes or charges which may have accrued or been incurred prior to the date of Closing, but not collected or paid at that date. Rents All prorations shall be based upon the actual number of days of ownership of the Property. Seller shall be responsible for all leasing commissions and other income, if any, collected by Buyer leasing costs due and payable prior to the Closing Date with respect to the Tenant Lease. Purchaser shall be responsible for all leasing commissions and other leasing costs attributable to any new leases executed on or after the Closing shall be applied first to Date or the renewal, extension or expansion of any amounts due to Buyer and then, existing lease after the Closing Date to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month Purchaser enters into any leasing agreement in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals leasing commissions and other leasing costs are payable in connection with the renewal, extension or other income. All security and expansion of any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made existing lease after the Closing pursuant Date. Seller represents and warrants that there are no leasing commissions or other leasing costs due and payable now or in the future under any agreement to which Seller or any of its affiliates is a party with respect to the Tenant Lease. The terms and provisions of this Agreementsection shall survive Closing hereunder.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (Cole Corporate Income Trust, Inc.), Purchase and Sale Agreement (Cole Corporate Income Trust, Inc.)
Prorations. The following items shall be prorated between Buyer Seller and Seller Purchaser (with Purchaser deemed to be holding title as of 11:59 p.m. local time of the day immediately preceding the Closing Date):
a. All ad valorem and other real estate taxes with respect to the Property (collectively, the “Taxes”) shall be prorated as of 12:01 a.m. on the Closing Date. If the Closing shall occur before the tax rate is fixed for the then current year, the apportionment of the Taxes shall be made upon the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") tax rate for the immediately preceding tax period then in effect and insurance premiums year applied to the latest assessed valuation of the Property. Within thirty (but only if Buyer is assuming Seller's insurance policy or policies). Proration 30) days after the actual amount of the Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occursoccurs are determined, with due allowance to be made for Seller and Purchaser shall adjust the maximum available discount proration of the Taxes and Seller or other exemptions Purchaser, as the case may be, shall pay to the extent permissible for said year, other any amount required as a result of such adjustment. All unpaid taxes and to the extent the tax bills do not accurately reflect the actual Taxes taxes assessed against the Property for prior years due to a change in use or ownership of the Property shall be paid by Seller. Notwithstanding the foregoing, there will be no proration of taxes among the parties pursuant to this provisions for which the payor is entitled to or has received a reimbursement from USPS.
b. All rent and other amounts payable under the Lease shall be prorated as of 12:01 a.m. on the Closing Date. Seller shall be charged with, and Purchaser shall receive, a credit against the Purchase Price for (i) any rent and other amounts collected by Seller or the Contributed Entity with respect to the Property prior to the Closing Date, but applicable to any period after the Closing Date and (ii) any security deposits held by Seller or the Contributed Entity with respect to the Property and prepaid rents received by Seller or the Contributed Entity with respect to the Property under the Lease. Rent is deemed to be delinquent when payment thereof is due on or prior to Closing but has not been made by Closing. Delinquent rent shall be prorated between Purchaser and Seller as of the Closing as if Seller or the Contributed Entity had received such rent and consequently, Seller shall not be entitled to any credit or increase to the Purchase Price as a result of such delinquent rent. Seller is permitted to pursue Tenant for delinquent rent that was due prior to Closing, but agrees to do so in a commercially reasonable manner (provided, however, that: (a) Seller shall not seek to have Tenant’s possession of the Land and the Improvements under the Lease terminated; and (b) Seller shall not be entitled to any rent received from Tenant after the Closing unless Tenant is current in its rent obligations to Purchaser for periods occurring from and after Closing). Delinquent rent collected by Purchaser (if any), net of the costs of collection (including attorneys’ fees), shall be applied first against those amounts currently due (or any portion of the Propertyto be due within ten (10) days) and allocable either then to amounts most recently overdue. Any payments due to Seller as a result of collected delinquent rent shall be payable by Purchaser to Seller upon receipt thereof. In the period before event Seller receives the Closing or to the period rental check from Tenant after the Closing, then Buyer and Seller shall adjust it was not a part of the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionmentsrent proration, Seller shall receive all immediately remit to Purchaser the full amount of the check received. Both parties acknowledge that USPS rents and other income accruedare paid in arrears, at the end of month, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, be adjusted accordingly.
c. All other income and operating expenses of the Contributed Entity or the Property, including, without limitation, public utility charges, maintenance, management, and other service charges, and all other normal operating charges shall be prorated as of the Closing. Rents Closing Date based upon the best available information (it being understood that, unless otherwise indicated, Seller, on behalf of the Contributed Entity, shall pay all amounts due with respect to the Property that accrue prior to the Closing Date), or, in Purchaser’s sole discretion, moved into Purchaser’s name as of the Closing Date.
d. With respect to leasing commissions, tenant finish costs, costs associated with architectural plans and other incomespecifications, utility splits, and demising costs, if any, collected by Buyer after the Closing Seller shall be applied first to any amounts due to Buyer and then, to responsible for the extent payment of all such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price costs at the Closing. Escrow Holder .
e. For purposes of proration only, Purchaser is deemed to own on the Property on the Closing Date.
f. This Section 3.06 shall not be concerned merge with any prorations that are to be made after the Closing pursuant to this AgreementDeed and shall survive the Closing.
Appears in 2 contracts
Samples: Agreement of Purchase and Sale (Postal Realty Trust, Inc.), Agreement of Purchase and Sale (Postal Realty Trust, Inc.)
Prorations. The following 16.1 Real estate and personal property taxes and ground rents under the Ground Leases shall be prorated between Buyer and Seller as of 11:59 p.m. local time midnight of the day immediately before the Closing Date. In the event that the taxes for the year of the Closing are unknown, the tax proration will be based upon such taxes for the prior year and, at the request of either party, such taxes for the year of the Closing shall be reprorated and adjusted when the tax bill for the year xx xhe Closing is received and the actual amount of taxes is known.
16.2 Utility bills or charges, where applicable, shall be prorated as of midnight of the day before the Closing Date. The parties shall, to the extent reasonably possible, have utility meters read the day preceding the Closing Date and Seller shall be responsible for paying all utility bills or charges which accrued against the Property prior to midnight of the day before the Closing Date and Purchaser shall be required to pay all utility bills or charges accruing against the Property on or subsequent to midnight of the day before the Closing Date, on the basis with any charge for which a reading could not be made as of the actual number of days elapsed during the month in which day preceding the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for Date being prorated as of midnight of the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be day before the Closing Date using an estimate based on the most recent official tax bills or notice reading for such utility. Purchaser shall, as of valuation available for the fiscal year in which day prior to the Closing occursDate, post with due allowance to be made for the maximum available discount or other exemptions each utility company such deposit as each such utility company shall require, to the extent permissible for said year, and end that Seller's utility deposits shall be refunded to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after Seller following the Closing, then Buyer and Seller after appropriate charge for Seller's utility bills. Purchaser shall adjust secure its own insurance on the actual Taxes between Buyer and Seller, outside Property as of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer Seller shall receive cancel all rents existing insurance policies as of the Closing Date. Purchaser and Seller shall, before and after the Closing, reasonably cooperate with each other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Datethis Section 16.2.
16.3 The parties agree that, except as otherwise specifically stated elsewhere in this Agreement, all of which rents, other income and expenses shall of the Property are intended to be prorated as of midnight of the Closingday before the Closing Date. Rents and other incomePurchaser shall be deemed the owner of the Property, if anyfor the purpose of such calculation, collected for the entire Closing Date. Income shall include all revenue of Seller derived from the operation of the Property. Expenses shall include all expenses from the operation of the Property. Income actually received by Buyer after Seller prior to the Closing in payment for a period subsequent to the Closing shall be applied first appear on the closing statement as a credit to any amounts due to Buyer and then, Purchaser. Expenses actually paid by Seller prior to the extent such rents or other income relate Closing in payment for a period subsequent to the period ending Closing shall appear on or before the Closingclosing statement as a credit to Seller.
16.4 Notwithstanding anything to the contrary in Section 16.3 above, such rents or other income under the Leases, including, without limitation, fixed rent and additional rent, including operating expense and real estate tax pass-throughs (collectively, "Rents"), shall be paid to Seller within ten (10) days after end of addressed in the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.manner set forth in
Appears in 2 contracts
Samples: Purchase and Sale Agreement (Highwoods Realty LTD Partnership), Purchase and Sale Agreement (Highwoods Properties Inc)
Prorations. The following shall be prorated between Buyer (a) Seller and Seller Purchaser agree to adjust, as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the "PRORATION TIME"), the following (collectively, the "PRORATION ITEMS"):
(i) Rentals, in accordance with Section 10.4(b) below.
(ii) Cash Security Deposits and any prepaid rents, together with interest required to be paid thereon.
(iii) Utility charges payable by Seller, including, without limitation, electricity, water charges and sewer charges. If there are meters on the Real Property, Seller will cause readings of all said meters to be performed not more than five (5) days prior to the Closing Date, on and a per diem adjustment shall be made for the basis of days between the actual number of days elapsed during the month in which meter reading date and the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be Date based on the most recent official tax bills or notice of valuation available meter reading.
(iv) Amounts payable under the Spectrasite Agreements and amounts payable under the Service Contracts other than those Service Contracts which Purchaser has elected not to assume.
(v) Real estate taxes due and payable for the fiscal year in which calendar year. If the Closing occursDate shall occur before the tax rate is fixed, with due allowance to the apportionment of real estate taxes shall be made upon the basis of the tax rate for the maximum available discount or other exemptions preceding year applied to the extent permissible for said yearlatest assessed valuation. If, and subsequent to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, real estate taxes (by reason of change in either assessment or rate or for any other reason) for the Real Property and Buyer Improvements should be determined to be higher or lower than those that are apportioned, a new computation shall receive all rents and other income accruingbe made, and shall Seller agrees to pay Purchaser any increase shown by such recomputation and vice versa. Purchaser shall, at Closing, assume all other expenses accrued incurred or incurred, to be incurred in connection with any real estate tax appeals that are pending at the ownership or operation time of Property on or after Closing. Seller will be charged and credited for the Closing Date, amounts of all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate Proration Items relating to the period ending up to the Proration Time, and Purchaser will be charged and credited for all of the Proration Items relating to the period from and after the Proration Time. The estimated Closing prorations shall be set forth on or before a preliminary closing statement to be prepared by Seller and submitted to Purchaser prior to the ClosingClosing Date (the "CLOSING STATEMENT"). The Closing Statement, such rents or other income once agreed upon, shall be signed by Purchaser and Seller. The proration shall be paid at Closing by Purchaser to Seller within ten (10if the prorations result in a net credit to Seller) days after end of or by Seller to Purchaser (if the month prorations result in which such amounts were collected. Buyer shall incur no obligation a net credit to Seller for Buyer's failure Purchaser) by increasing or reducing the cash to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion Purchaser in payment of the Purchase Price at the Closing. Escrow Holder shall If the actual amounts of the Proration Items are not known as of the Closing Date, the prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations will be made on the basis of the actual figures, and a final cash settlement will be made between Seller and Purchaser. No prorations will be made in relation to insurance premiums, and Seller's insurance policies will not be concerned assigned to Purchaser. Final readings and final xxxxxxxx for utilities will be made if possible as of the Closing Date, in which event no proration will be made at the Closing with respect to utility bills. Seller will be entitled to all deposits presently in effect with the utility providers, and Purchaser will be obligated to make its own arrangements for any prorations that are deposits with the utility providers. The provisions of this Section 10.4(a) will survive the Closing for twelve (12) months.
(b) Purchaser will receive a credit on the Closing Statement for the prorated amount (as of the Proration Time) of all Rental previously paid to or collected by Seller and attributable to any period from and after the Proration Time. After the Closing, Seller will cause to be made paid or turned over to Purchaser all Rental, if any, received by Seller after Closing and attributable to any period from and after the Closing pursuant Proration Time. "RENTAL" as used herein includes fixed monthly rentals, additional rentals, percentage rentals, escalation rentals (which include each Tenant's proration share of building operation and maintenance costs and expenses as provided for under the Lease, to this Agreement.the extent the same exceeds any expense stop specified in such Lease), retroactive rentals, all administrative charges, utility charges, tenant or real property
Appears in 2 contracts
Samples: Agreement of Sale and Purchase (Mack Cali Realty L P), Agreement of Sale and Purchase (Mack Cali Realty Corp)
Prorations. The following (a) All collected rents and other income and all operating expenses with respect to the Property for the month in which the Closing occurs, and real estate and personal property taxes and other assessments with respect to the Property for the year in which Closing occurs, shall be prorated between Buyer and Seller as of 11:59 p.m. local time the close of business of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property Rent collected by Purchaser on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due current rent due, with any additional amount owed to Buyer Seller to be remitted to Seller within 10 days of receipt. Purchaser shall make a good faith effort to collect any back rents owed to Seller, but shall not be obligated to initiate any litigation to collect such rents. If the amount of any item to be adjusted is not ascertainable on the Closing Date, the item shall be prorated by the Purchaser and then, Seller based on the best available information. Those items shall be reprorated as promptly after the Closing as possible. Any errors or omissions in computing the prorations at the Closing shall be corrected promptly. The obligation to the extent such rents or other income relate to the reprorate shall survive for a period ending on or before of six (6) months after the Closing, such rents or other income . Any payments due as a result of reproration shall be paid to Seller within ten (10) days after end of the month reproration.
(b) If the Closing occurs before the tax xxxx for the year of closing is available, taxes shall be prorated using the taxes paid in which such prior year. After the tax xxxx is available, the taxes shall be reprorated at the request of the Seller or Purchaser based on the tax xxxx for the year of closing. Any amounts were collecteddue as a result of the reproration shall be paid within ten (10) days of the reproration. Buyer Special assessment liens, if any, that are a charge or lien on the Property or that are due and payable at the time of Closing shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits be paid by tenants to Seller pursuant to tenant leases Seller.
(c) To the extent possible, Purchaser shall be delivered by certified funds to Buyer at responsible for arranging all utility service and insurance coverage for the Project in its own name commencing as of 12:01 a.m. on the Closing or, at Seller's option, credited Date. Seller shall be responsible for all utility charges accrued prior to Buyer against the cash portion Closing Date and Seller shall receive a refund of the Purchase Price at the Closingall utility deposits and insurance premiums. Escrow Holder shall If a change in utility service cannot be concerned with any prorations that are to be made after effected on the Closing pursuant to this AgreementDate, utility charges will be estimated and prorated as provided in Section 4.8(a).
Appears in 2 contracts
Samples: Assignment and Assumption of Agreement for Purchase and Sale of Property (Boston Capital Real Estate Investment Trust Inc), Assignment and Assumption of Agreement for Purchase and Sale of Property (Boston Capital Real Estate Investment Trust Inc)
Prorations. The following shall be prorated between Buyer and Seller Seller, as of 11:59 p.m. local time the Close of the day immediately preceding the Closing DateEscrow, on the basis of the actual number of days elapsed during the month in which the Closing Close of Escrow occurs: (a) general and special county and city real property taxes and special assessments (collectively, "Taxes"); (b) for utilities; and (c) any service agreements transferred to Buyer at the tax period then in effect Close of Escrow. The amount of any utility deposit, or any other deposit transferred to Buyer pursuant hereto, shall be credited to Seller and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies)debited to Buyer. Proration of Taxes shall must be based on the most recent official tax bills or notice of valuation available to the general public for the fiscal year in which the Closing Close of Escrow (such obligation to survive the Close of Escrow) occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing), then Buyer and Seller shall adjust the such actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Close of Escrow. In the event that after the Closing, there shall be a retroactive increase in any Taxes imposed on the owner of the Property: (i) if such increase shall relate to the tax year in which the Close of Escrow occurred, such increase shall be prorated by Seller and Buyer on a per diem basis based on their respective periods of ownership during the period such increase is effective, (ii) if such increase shall relate to any tax year subsequent to the tax year during which the Close of Escrow occurred, such increase shall be the obligation of Buyer, and (iii) if such increase shall relate to any tax year prior to the tax year during which the Close of Escrow occurred, such increase shall be the obligation of Seller. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, accrued prior to the a Close of Escrow and shall pay all other expenses accrued or incurred, incurred in connection with the ownership or operation of the Property before prior to the Closing Date, Close of Escrow and Buyer shall receive all rents and other income accruing, accruing on or after the Close of Escrow and shall pay all other expenses incurred or accrued or incurred, in connection with the ownership or operation of the Property on or after the Closing Date, all Close of which rents, other income Escrow. If and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent Escrow Holder requires any information or instructions from Buyer and Seller in order to perform such rents or other income relate to the period ending on or before the Closingprorations, such rents or other income Buyer and Seller shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closingfurnish Escrow Holder with further mutual instructions. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing Close of Escrow pursuant to this Agreement.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (Neurocrine Biosciences Inc), Purchase and Sale Agreement (Neurocrine Biosciences Inc)
Prorations. The (a) On the Closing Date, or as promptly as practicable following the Closing Date, but in no event later than one hundred and twenty (120) calendar days thereafter, the water, gas, electricity and other utilities, local business or other license fees to the extent assigned and other similar periodic charges payable with respect to the Acquired Assets shall be prorated between Buyer Seller, on the one hand, and Seller Buyer, on the other hand, effective as of 11:59 p.m. local time of the day immediately preceding Effective Time with Seller being responsible for amounts related to the period prior to but excluding the Closing Date and Buyer being responsible for amounts related to the period on and after the Closing Date. The Parties shall use commercially reasonable efforts to cause utility meter readings to be determined as of the Effective Time or as close thereto as reasonably practicable; provided, however, that if a Party’s proration for a particular amount owed under this Section 2.4 cannot be determined due to the unavailability of the necessary information on the appropriate invoice or remittance statement, then the proration shall be calculated on a per day basis of using the actual number of days elapsed during in the month in which respective Party’s period.
(b) All income, proceeds and receipts attributable to the Closing occurs: general and special county and city real property taxes and special assessments (collectivelyoperation, "Taxes") for use, ownership, or otherwise of the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes Acquired Assets prior to the Effective Time shall be based on the most recent official tax bills or notice property of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions Seller and to the extent permissible received by Buyer or its Affiliates, Buyer shall promptly and fully disclose, account for said yearand transmit same to Seller. All income, proceeds and receipts attributable to the operation, use, ownership, or otherwise of the Acquired Assets on and after the Effective Time shall be the property of Buyer and to the extent received by Seller or its Affiliates, Seller shall promptly and fully disclose, account for and transmit same to Buyer. In addition, all invoices, costs, expenses, disbursements and payables attributable to the Acquired Assets prior to the Effective Time shall be the sole obligation of Seller, and Seller shall promptly pay, or if paid by Buyer, Seller shall promptly reimburse Buyer for same. All invoices, costs, expenses, disbursements and payables attributable to the Acquired Assets on and after the Effective Time shall be the sole obligation of Buyer, and Buyer shall promptly pay, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property paid by Seller, Buyer shall promptly reimburse Seller for same.
(or any portion c) The provisions of the Property) and allocable either to the period before the Closing or to the period after this Section 2.4 shall survive the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Western Refining, Inc.), Asset Purchase Agreement (Western Refining, Inc.)
Prorations. The following (a) Buyer and Sellers agree that all of the items normally prorated, including those listed below (but not including Income Taxes), relating to the business and operation of the NMP-2 Assets shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions Sellers liable to the extent permissible for said year, of their respective Proportionate Ownership and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or such items relate to any portion of the Property) and allocable either time period prior to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive liable to the extent of the aggregate of Sellers' Proportionate Ownership and to the extent such items relate to periods commencing with the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days):
(i) Personal property, real estate and occupancy Taxes, assessments and other charges, if any, on or with respect to the business and operation of the NMP-2 Assets;
(ii) Rent, Taxes and all other items (including prepaid services or goods not included in Inventory) payable by or to Sellers under any of Sellers' Agreements or the Non-material Contracts;
(iii) Any permit, license, registration, compliance assurance fees or other fees with respect to any Transferable Permit;
(iv) Sewer rents and charges for water, telephone, electricity and other income accruing, utilities; and
(v) Rent and shall pay all Taxes and other expenses accrued or incurred, in items payable by Sellers under the Real Property Agreements assigned to Buyer.
(b) In connection with the ownership prorations referred to in (a) above, in the event that actual figures are not available at the Closing Date, the proration shall be based upon the actual Taxes or operation other amounts accrued through the Closing Date or paid for the most recent year (or other appropriate period) for which actual Taxes or other amounts paid are available. Such prorated Taxes or other amounts shall be re-prorated and paid to the appropriate Party within sixty (60) days of Property the date that the previously unavailable actual figures become available. The prorations shall be based on the number of days in a year or other appropriate period (i) before the Closing Date and (ii) including and after the Closing Date, all of which rents, . Sellers and Buyer agree to furnish each other income and expenses shall be prorated as of the Closing. Rents with such documents and other income, if any, collected by Buyer after the Closing shall records as may be applied first reasonably requested in order to any amounts due to Buyer confirm all adjustment and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be proration calculations made after the Closing pursuant to this AgreementSection 3.5.
Appears in 2 contracts
Samples: Asset Purchase Agreement (New York State Electric & Gas Corp), Asset Purchase Agreement (Ch Energy Group Inc)
Prorations. The following shall be prorated between Buyer (a) All normally and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Datecustomarily proratable items, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general including, without limitation, real estate and special county and city real personal property taxes (“Taxes”), utility expenses, and special assessments (collectively, "Taxes") for payments under the tax period then in effect and insurance premiums Property Agreements (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the such Property (or any portion of the PropertyAgreements are being assumed by Purchaser at Closing) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing Date, Seller being charged and credited for all of the same up to such date and Purchaser being charged and credited for all of the same on and after such date. If the actual amounts to be prorated are not known as of the Closing Date, the proration shall be made on the basis of the best information then available, and thereafter, when actual figures are received, a cash settlement will be made between Seller and Purchaser. Seller shall be obligated to pay any and all taxes and assessments that arise as a result of change in land usage or ownership, including without limitation all “rollback” or other additional taxes.
(b) If the Taxes for the year of Closing are not known as of the Closing Date, the proration for Taxes will be determined based upon the appraised value of the Property and the tax rates applicable to the Property during the year prior to the calendar year of the Closing.
(c) If the actual amounts to be prorated with respect to expenses other than Taxes are not known as of the Closing Date, the prorations with respect to those expenses shall be made on the best information then available.
(d) With respect to both Taxes and other expenses, after the actual amounts of the Taxes or other expenses are known, adjustments, if needed, will be made between Seller and Purchaser.
(e) The foregoing notwithstanding, it is acknowledged and agreed that the tenants under the HEB Lease, the Raising Cane’s Lease and the Hat Creek Lease are responsible to pay Taxes applicable to calendar year 2017 and subsequent calendar years for their respective leased premises (each a separate tax parcel) directly to the applicable taxing authority and, accordingly, Taxes for the tax parcels under the HEB Lease, the Raising Cane’s Lease and the Hat Creek Lease will not be pro-rated at the Closing.
(f) All deposits held by the providers of utility services to the Real Property shall, at Seller’s option, be refunded to the Seller by the appropriate utility providers, or be reimbursed to Seller by Purchaser at the Closing. Rents and other income, if any, collected by Buyer after the Closing Purchaser shall be applied first solely responsible to any amounts due to Buyer and then, make arrangements for the continuation of utility services to the extent such rents Real Property, including without limitation, the obligation to post new utility deposits in the event Seller elects to obtain a refund of Seller’s existing deposits from the providers of utility services. Notwithstanding the foregoing, Seller will not take any action or other income relate fail to take any action which would result in the cessation or termination of utility service to the period ending on or before Real Property.
(g) All security deposits actually in Seller’s possession under the terms of any existing leases shall be delivered to Purchaser at the Closing, and Purchaser will assume all liabilities and obligations of Seller in connection with such rents security deposits. As for any security deposits not in the form of cash (e.g., letters of credit), Seller must deliver to Purchaser at Closing the original letter of credit or other income shall non-cash instrument, together with all transfer documentation and transfer fees required by the issuing entity to cause same to be paid reissued to Purchaser immediately following the Closing. Seller and Purchaser agree to cooperate to ensure that fully executed Tenant Letters are sent to all of the Tenants at the Property within ten (10) days after end of the Closing.
(h) All rents collected with respect to the Property as of the Closing Date for the then current month shall be prorated as of the Closing Date. Purchaser shall make reasonable attempt after Closing to collect uncollected rents for any period prior to Closing (the “Delinquent Rents”) in which the usual course of operation of the Property; provided, however, Purchaser shall not be required to declare a lease default or institute any legal action in any court against any Tenant. Seller may not initiate (nor demand that Purchaser initiate) legal proceedings for collection of delinquent rentals against any Tenants. One hundred eighty (180) days after the Closing Date, upon written request from Seller, Purchaser shall provide Seller with a written accounting (the “Uncollected Rents Accounting”) of all of the Delinquent Rents and all other rents and expenses collected by Purchaser after Closing. Purchaser shall promptly pay to Seller all Delinquent Rents not previously remitted by Purchaser to Seller, but only to the extent Seller is entitled to the same under this section. In making the computations required by this Section, all amounts of Delinquent Rent collected from Tenants shall be applied: (i) first to Purchaser’s actual and reasonable costs of collection, including, without limitation, court costs and reasonable attorneys’ fees; (ii) next, to current rental owed by such amounts were collectedTenant; and (iii) finally, to delinquent rentals, if any, owed by such Tenant in the inverse order of their maturity. Buyer shall incur no Seller will deliver to Purchaser, within five (5) business days following receipt, any rents received by Seller after the Closing and attributable to the period from and after the Closing. If Seller has provided any Tenant with free rent under the terms of its Tenant Lease (the “Free Rent”), then Seller agrees, at the Closing, to provide Purchaser with a credit against the Purchase Price equal to that portion of the Free Rent, if any, covering the period after the Closing Date; provided, however, Purchaser will not be entitled to such credit if any such Free Rent would be paid to Purchaser under any Master Lease.
(i) The Hotel Lease, defined in the Rent Roll, includes an obligation to reimburse landlord for impact and subsequent user fees prepaid by Seller for Buyer's failure to Water Control and Improvement District No. 17 (“WCID 17”). The requirement to reimburse these impact and subsequent user fees are referred to herein as the “Impact Fees Reimbursements”. All Impact Fees Reimbursements will be paid to Seller when received from the applicable Tenant. After Closing, Purchaser agrees to use commercially reasonable efforts, at no cost or liability to Purchaser, to collect such rentals unpaid Impact Fees Reimbursements from the Tenant under the Hotel Lease when due in the usual course of operation of the Property and will promptly remit Impact Fees Reimbursements, if any, collected to Seller; provided, however, Purchaser shall not be required to declare a lease default or institute any legal or other incomeproceedings against any Tenant. All security and any other refundable deposits Purchaser agrees that it will, if permitted by the terms of the Hotel Lease, offset the Impact Fees Reimbursement due by the Tenant under the Hotel Lease (if the Impact Fees Reimbursement has not otherwise been paid by tenants such Tenant) from any Security Deposit due back to Tenant under the Hotel Lease at the time the Security Deposit refund is due Tenant and pay such offset amount to Seller. Seller pursuant may not initiate (nor demand that Purchaser initiate) legal or other proceedings for collection of Impact Fees Reimbursements from any Tenant.
(j) All (i) unpaid tenant finish out or construction allowances, landlord construction cost or reimbursement obligations, if any, under the Tenant Leases executed on or prior to tenant leases shall Closing (“Unpaid Allowances”) and (ii) unpaid leasing commissions, if any, for Tenant Leases executed on or prior to Closing (“Unpaid Leasing Commissions”), will be delivered paid by certified funds Seller to Buyer Purchaser at the Closing or, at Seller's option, credited to Buyer by credit against the cash portion Purchase Price, and Purchaser will assume all liabilities and obligations of Seller in connection with the payment of the Purchase Price Unpaid Allowances and the Unpaid Leasing Commissions so credited; provided, however, if Unpaid Allowances or Unpaid Leasing Commissions are outstanding under any Tenant Leases which are not Earn-Out Leases as of the Closing then, in lieu of such credit, such Unpaid Allowances and Unpaid Leasing Commissions will be funded by Seller into escrow in accordance with the Tenant Allowance/Commission Escrow Agreement at the Closing.
(k) Seller has entered into a Tenant Lease effective May 15, 2015 (the “RCR Lease”), with Raising Cane’s Restaurants, LLC (“RCR”). Escrow Holder Prior to Closing, Seller paid to RCR the entire $1,450,000 Allowance (as defined in the RCR Lease). Notwithstanding the terms of clause (i) above, if the Closing occurs, Purchaser will reimburse Seller at Closing the amount of the Allowance paid by Seller to RCR to the extent not already collected by Seller from RCR as Improvement Rent (as defined in the RCR Lease) under the RCR Lease.
(l) Seller shall not be concerned with any prorations that are has agreed to be made fund an escrow in the amount of $140,000.00 at the Closing in order to provide funding for certain landscape improvements on the Property after the Closing pursuant to in accordance with a landscape escrow agreement in the form attached hereto and incorporated herein for all purposes as Exhibit “G-1.” The provisions of this AgreementSection 5.05 shall survive the Closing.
Appears in 2 contracts
Samples: Agreement of Sale and Purchase, Agreement of Sale and Purchase (Stratus Properties Inc)
Prorations. The following shall (a) Ad valorem taxes and assessments (whether for real estate or personal property) against the Property will be prorated between Buyer and Seller at Closing as of 11:59 p.m. local time the Closing Date based on the tax bills for the year of the day immediately preceding Closing. Buyer will receive at Closing a credit against the Purchase Price in an amount equal to the portion of the taxes and assessments on the Property from the beginning of the current tax year to the Closing Date. If Closing occurs before that year's tax bills are available, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall proration will be based on the most recent official latest tax bills or notice of valuation available rate applied to the latest unappealed tax value. If an estimated proration is made, then after the taxes and assessments for the fiscal year in which the Closing occursoccurs are finally assessed, with due allowance within 30 days after demand, Buyer shall refund to be made for Seller any amount overpaid by Seller or Seller shall pay to Buyer the maximum available discount or other exemptions to amount of any deficiency in the extent permissible for said year, proration. Buyer shall pay all taxes and to the extent the tax bills do not accurately reflect the actual Taxes assessed assessments against the Property before they become delinquent.
(or any b) All income and expenses of the Real Property and Improvements (other than ad valorem taxes and assessments) will be prorated at Closing as of the Closing Date on an accrual basis. All rents actually prepaid for a portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property term on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer offset against the cash portion of Purchase Price. All other income and expense items subject to proration pertaining to the Purchase Price period prior to the Closing Date will be allocated to and paid by Sellers and all income and expense items subject to proration pertaining to the period starting on the Closing Date will be allocated to and paid by Buyer. Seller is responsible for Lease commissions due Seller's employees and locator fees for Leases under which the tenant moves into a unit prior to the Closing Date. Buyer is responsible for locator fees for Leases under which the tenant moves into a unit on or after the Closing Date. All application fees which are not prepaid security deposits shall be retained by Seller. Any income payable in connection with any Service Contract will be prorated, but no lump sum or up front payments paid to Seller with respect to any Service Contract will be prorated. Rent will be prorated based on the Rent Roll provided by Seller at the Closing. Escrow Holder No later than 3 business days prior to the Closing Date, Buyer and each Seller shall not be concerned with mutually approve and provide to Closing Agent a schedule of prorations in as complete and accurate a form as possible. No later than 60 days after Closing, Seller and Buyer shall make appropriate post-closing adjustments to the prorations of income and expenses but in no event will any prorations that are to readjustment be made after the 60th day after the Closing pursuant Date, other than a readjustment of ad valorem taxes and assessments.
(c) All Deposits paid as refundable security for rent, cleaning, pet deposits, or any other purposes will be paid to Buyer at Closing and the obligation, if any, to refund the cash deposits to tenants is assumed by Buyer. Except as provided in SECTION 6.3(d), no non-refundable deposits or fees paid by tenants shall be paid or payable to Buyer.
(d) Any amounts of so-called "hassle free move-out" payments paid to Seller for current leases on the Properties shall be equally split between Seller and Buyer and, at Closing, Seller shall pay to Buyer its share thereof.
(e) All deposits and escrows made by Seller with the respective Lenders will be delivered to the Sellers at Closing and will be retained by the Seller or will be credited to the Seller at Closing.
(f) The obligations of Sellers and Buyer under this AgreementSECTION 6.3 survive the Closing.
Appears in 2 contracts
Samples: Contract of Sale/Contribution (Education Realty Trust, Inc.), Contract of Sale/Contribution (Education Realty Trust, Inc.)
Prorations. The following prorations relating to the Purchased Assets and the ownership and operation of the Business set forth in this Section 4.6 will be made as of the Closing. The prorations shall be estimated and prepared by Sellers and included in the Estimated Closing Statement and the Final Closing Statement delivered to Buyer pursuant to Section 4.1 and Section 4.3, respectively (in each case to the extent not already reflected in the Estimated Closing Net Working Capital).
(a) Utility meters will be read, to the extent that the utility company will do so, during the daylight hours on the Closing Date (or as near as practicable prior thereto), with charges to that time paid by Sellers and charges thereafter paid by Buyer. Prepaid utility charges shall be adjusted on the Estimated Closing Statement and Final Closing Statement. Charges for utilities which are un-metered, or the meters for which have not been read on the Closing Date, will be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated Sellers as of the Closing. Rents Sellers or Buyer, as appropriate, shall, upon receipt, submit a copy of the utility xxxxxxxx for any such charges to the other party and such receiving party shall pay its pro-rata share of such charges to the submitting party within seven (7) days from the date of any such submission (to the extent not already reflected in the Estimated Closing Net Working Capital).
(b) All income and expenses pursuant to the Assumed Contracts will be prorated between Buyer and Sellers as of the Closing Date on the Estimated Closing Statement and Final Closing Statement. Sellers shall receive a credit on the Estimated Closing Statement and Final Closing Statement for (i) the amount of any prepaid rents related to periods from and after the Closing, and (ii) security deposits, or other incomedeposits previously paid by Sellers under the Assumed Contracts, if any, less any such amounts paid to and collected by Sellers under the Assumed Contracts. Any amounts received by Buyer under the Assumed Contracts related to any period prior to the Closing shall be promptly paid to Sellers. Any amounts received by Sellers under the Assumed Contracts related to any period after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be promptly paid to Seller within ten (10) days after end of Buyer. Except as otherwise specified in this Section 4.6 or agreed by the month in which such amounts were collected. Buyer shall incur no obligation parties or with respect to Seller for Buyer's failure adjustments to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at made pursuant to Section 4.3, the Closing. Escrow Holder shall not net amount of all such prorations will be concerned with any prorations that are to be made after settled and paid on the Closing pursuant to this AgreementDate.
Appears in 2 contracts
Samples: Equity Interest Purchase Agreement (CAESARS ENTERTAINMENT Corp), Equity Interest Purchase Agreement (Penn National Gaming Inc)
Prorations. The following shall be prorated between Buyer All Taxes other than Transfer Taxes or Taxes based upon or related to income or receipts, including but not limited to, all personal property taxes, ad valorem obligations and Seller as of 11:59 p.m. local time of similar taxes imposed on a periodic basis, in each case levied with respect to the day immediately preceding International Assets for a taxable period which includes (but does not end on) the Assets Call Closing Date, shall be apportioned between the Seller and DISH as of the Assets Call Closing Date based on the basis of the actual number of days elapsed during in such taxable period prior to the month Assets Call Closing Date (the “Pre-Closing Period”) and the number of days in which such taxable period following the Assets Call Closing occurs: general and special county and city real property taxes and special assessments Date (collectively, "Taxes") the “Post-Closing Period”). The Seller shall be liable for the tax period then in effect and insurance premiums (but only if Buyer proportionate amount of such Taxes that is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions attributable to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property Pre-Closing Period. Within ninety (or any portion of the Property90) and allocable either to the period before the Closing or to the period days after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Assets Call Closing Date, the Seller and Buyer DISH shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection present a reimbursement to which each is entitled under this Section 9.4 together with such supporting evidence as is reasonably necessary to calculate the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closingproration amount. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income The proration amount shall be paid by the Party owing it to Seller the other within ten (10) days after end delivery of such statement. Thereafter, the Seller shall notify DISH upon receipt of any xxxx for personal property Taxes relating to the International Assets, part or all of which are attributable to the Post-Closing Period, and shall promptly deliver such xxxx to DISH who shall pay the same to the appropriate taxing authority, provided that if such xxxx covers the Pre-Closing Period, the Seller shall also remit, prior to the due date of assessment, to DISH payment for the proportionate amount of such xxxx that is attributable to the Pre-Closing Period. In the event that either the Seller or DISH shall thereafter make a payment for which it is entitled to reimbursement under this Section 9.4, the other Party shall make such reimbursement promptly but in no event later than thirty (30) days after the presentation of a statement setting forth the amount of reimbursement to which the presenting Party is entitled along with such supporting evidence as is reasonably necessary to calculate the amount of reimbursement. Any payment required under this Section 9.4 and not made within ten (10) days of delivery of the month in which such amounts were collected. Buyer statement shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer bear interest at the Closing orrate per annum determined, at Seller's optionfrom time to time, credited to Buyer against under the cash portion provisions of Section 6621(a)(2) of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementCode for each day until paid.
Appears in 2 contracts
Samples: Implementation Agreement, Implementation Agreement (ICO Global Communications (Holdings) LTD)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses accounts shall be prorated as of the Closing Date and purchased in cash by Purchaser or credited against cash due to Seller or due from Purchaser, as applicable:
(a) Real estate, personal property taxes, ad valorem taxes and sanitary sewer assessments and similar impositions on the Property (the “Taxes”) if any, for the period prior to Closing shall be prorated as of the Closing Date. The Taxes for the year in which the Closing occurs shall be prorated as of the Closing Date based on the assessment for that year if the assessed value and applicable rates are known at the time of Closing. Rents ; otherwise, Taxes shall be prorated on the basis of the most recent ascertainable assessed value and other incomerates.
(b) All prepaid rents and amounts payable under the leases, license agreements, service, operating and maintenance contracts assigned to and assumed by the Purchaser, as set forth herein, to the extent same shall cover periods subsequent to Closing shall be credited to Seller.
(c) Amounts prepaid as fees for business permits and licenses which are permitted by law to be assigned to and credited to Seller.
(d) Refundable deposits paid to Seller as lessor under leases or agreements that Purchaser agrees to assume and advance deposits received by Seller for reservations on and after the date of Closing shall transfer to Purchaser, and Purchaser shall thereupon acquire and assume all of Seller’s rights and obligations, if any, collected by Buyer after in and to such deposits.
(e) All charges for utilities and telephones shall be prorated as of the Closing Date. Purchaser shall transfer all utilities including telephones into its name as of the Closing Date and shall pay all charges therefor from and after Closing.
(f) All Lender Held Escrows shall be applied first to any amounts due to Buyer assumed by Purchaser and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid credited to Seller within ten (10) days after end as of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementDate.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (Sotherly Hotels Lp), Purchase and Sale Agreement (Sotherly Hotels Lp)
Prorations. (a) The following parties intend that Seller shall operate for its own account the business conducted at the Branch Offices until the Effective Time, and that Purchaser shall operate such business for its own account on and after the Effective Time. Thus, for purposes of this Agreement, items of proration and other adjustments shall include, without limitation: (i) rental payments under the Leases and payments under the Assumed Contracts; (ii) sales, transfer, excise and use taxes and personal and real property Taxes and assessments arising from the Leases, or otherwise from the Branch Offices (determined by assuming that the taxable year or period ended at the Effective Time and in accordance with Section 2.4(b)); (iii) Federal Deposit Insurance Corporation (“FDIC”) deposit insurance assessments for Deposit Liabilities (excluding any special or prepaid assessments paid or to be paid by Seller, including the prepaid assessment collected by the FDIC on December 30, 2009, which in either case shall not be prorated and the total amount of which shall remain with Seller), (iv) trustee or custodian fees on XXX accounts that are transferred to Purchaser as part of the Transferred Assets; (v) prepaid expenses and items and accrued but unpaid liabilities a portion of which is attributable to periods after the Effective Time (it being understood that Purchaser shall have no liability for any accrued but unpaid liabilities attributable to Excluded Assets or Excluded Liabilities), as of the close of business on the Closing Date; and (vi) prepaid safe deposit rental payments previously received by Seller, reduced by applicable past due payments with respect to corresponding safe deposit box rentals.
(b) Seller shall be prorated between Buyer responsible for fifty percent (50%) of all Transfer Taxes that may be imposed on the purchase and sale of the Transferred Assets and Purchaser shall be responsible for the other fifty percent (50%) of such Transfer Taxes. “Transfer Taxes” means all sales, use, value added, excise, registration, documentary, stamp, transfer, real property transfer, recording, and other similar Taxes and fees (together with any interest, penalties or additions to Tax or additional amount imposed). The parties shall cooperate in good faith to minimize such Transfer Taxes to the extent legally permissible. Purchaser and Seller shall apportion pro rata all real property and personal property Taxes paid or payable in connection with the Transferred Assets. Such apportionment shall be made on a per diem basis as of 11:59 p.m. local time of the day immediately preceding Closing Date and shall be based upon the fiscal year for which the same are assessed. In the event that the applicable tax xxxx, or other information reasonably necessary for computing any such apportionment is not available on the Closing Date, the apportionment shall be made at Closing on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city next-preceding fiscal year’s real property taxes and special assessments personal property Taxes. Within thirty (collectively, "Taxes"30) for calendar days after receipt by the parties of the applicable tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount xxxx or other exemptions to the extent permissible information reasonably necessary for said yearcomputing such apportionment, Purchaser and to the extent the tax bills do not accurately reflect Seller shall apportion the actual Taxes assessed against the Property (or any portion of the Property) and allocable and, if either to the period before the Closing or to the period after the party paid more than its proper share thereof at Closing, then Buyer and Seller the other party shall adjust promptly reimburse such party for the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementamount so expended.
Appears in 2 contracts
Samples: Branch Purchase and Assumption Agreement (Green Bancorp, Inc.), Branch Purchase and Assumption Agreement (Green Bancorp, Inc.)
Prorations. The (a) Contributor and the Partnership shall jointly prepare not less than five (5) days prior to the Closing Date, a closing settlement statement estimating the closing prorations and adjustments of the following shall items (without duplication of one another or any other provision hereof):
(i) All rents billed for the month in which the Closing Date occurs will be prorated between Buyer and Seller as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the “Cut-Off Time”) based on the amounts billed and the actual number of days in the month during which the Closing Date occurs; and Contributor will be entitled to such rent for the period on and before the Cut-Off Time, and the Partnership will be entitled to such rent for the period after the Cut Off Time. All rents payable by each tenant whose Lease commences on or after the Closing shall belong entirely to the Partnership, including any pre-paid rents received by Contributor or the Company. Should rent be received subsequent to Closing by the Partnership or the Company which belongs to Contributor, it will be promptly remitted to Contributor, and should rent be received subsequent to Closing by Contributor which belongs to the Partnership, it will promptly be remitted to the Partnership. If the Company collects any rent after the Closing Date from any tenant who was delinquent in the payment of rent as of the Closing Date, such rent shall be applied by the Company (1) first to the reimbursement of any cost or expense (including attorney fees) incurred by the Company or its agents in collecting such rent, (2) second, the remainder to the calendar month in which the Closing Date occurred, (3) third, the remainder to any calendar month or months following the calendar month in which the Closing Date occurred, until the tenant is current with respect to all rents payable after the Closing Date, and (4) finally any remainder to calendar months prior to the month in which the Closing Date occurred.
(ii) An amount equal to all cash tenant security deposits previously received by Contributor (or its predecessors as landlord under the Leases), to the extent not previously returned to such tenants or applied against rent or other obligations of tenants, will be credited to the Partnership.
(iii) Rent and other charges owed or paid by Contributor under any ground lease, if applicable, will be prorated as of the Cut-Off Time.
(iv) Personal property Taxes, gas, electric, steam, water and sewer charges, and other utility charges (utility charges will be prorated based on the last reading of meters prior to Closing performed at Contributor’s request, if possible) as of the Cut-Off Time.
(v) Real property Taxes will be prorated as of the Cut-Off Time.
(vi) Amounts owed or paid by Contributor under the Licenses will be prorated as of the Cut-Off Time.
(vii) Amounts owed or paid by Contributor under any reciprocal easement agreement will be prorated as of the Cut-Off Time.
(viii) Leasing commissions, tenant improvement allowances and other leasing costs for each Lease will be amortized over the term of the Lease in accordance with US GAAP. Leasing costs paid by the Company prior to the Cut-Off Time in excess of the portion of such costs amortized prior to the Cut-Off Time will be treated in accordance with GAAP and credited to Contributor.
(ix) An amount equal to any utility deposits posted by the Company with utilities as of the Cut-Off Time will be credited to Contributor.
(x) An amount equal to any escrows posted by the Company with the Lenders pursuant to the Loan Documents will be credited to Contributor.
(xi) The principal amount of, and all accrued and unpaid interest on the Loan as of the Cut-Off Time will be credited to the Partnership in computing the Capital Contribution Amount.
(xii) Except as otherwise provided herein, all other cash, including working capital, bank account balances or other cash-equivalents, held by the Company as of the Cut-Off Date will be credited to Contributor (and will continue to be held by the Company).
(xiii) Except as otherwise provided herein, all other liabilities of the Company, current or contingent (e.g., accrued expenses or accounts payable), as of the Cut-Off Time will be credited to the Partnership, to the extent that such liabilities would be required to appear on the Company’s balance sheet prepared in accordance with GAAP.
(xiv) Except as otherwise provided herein, all other pre-paid expenses of the Company as of the Cut-Off Time will be credited to Contributor.
(xv) All amounts for costs of Closing in accordance with Section 5.2.
(xvi) Such other matters as are customarily prorated in similar transactions where the Property is located will be prorated as of the Cut-Off Time.
(b) Prorations and/or adjustments shall be effected at Closing by increasing the Capital Contribution Amount (if the prorations and/or adjustments result in a net credit to Contributor) or by reducing the Capital Contribution Amount (if the prorations and/or adjustments result in a net credit to the Partnership).
(c) If the actual amounts of the items prorated and/or adjusted are not known as of the Closing Date, the prorations and/or adjustments will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations and/or re-adjustments will be made on the basis of the actual number figures, and a final computation of the Capital Contribution Amount will be made by Contributor and the Partnership not later than the date that is one hundred eighty (180) days elapsed following the end of the calendar year during which Closing occurs.
(d) If the month Closing Date shall occur before the real property tax rate is fixed, the apportionment of Taxes shall be upon the basis of the tax rate for the preceding fiscal year applied to the latest assessed valuation. If, subsequent to the Closing Date, Taxes are determined to be higher or lower than those that were apportioned, a new computation shall be made, and a re-proration or adjustment of the Capital Contribution Amount will be effected.
(e) Percentage rent, if any, payable under any Lease shall be prorated with respect to the full lease year or other applicable full period provided for under the Lease in which the Closing occurs: general occurs on a per diem basis as and special county and city real property taxes and special assessments (collectivelywhen collected. The proration of percentage rent, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes any, shall be based on the most recent official tax bills or notice of valuation available aggregate sales for the fiscal full lease year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to applicable full period under the extent permissible for said yearLease, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either by attributing tenant’s specific periodic sales amount to the period before the Closing or to Date and the period after the Closing, then Buyer from and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income Date and expenses shall be prorated as of then applying the Closingapplicable percentage rent percentage. Rents and other income, if any, Any percentage rent collected by Buyer the Company after Closing (including any percentage rent which is delinquent) and pertaining to (i) an entire lease year or accounting period of a tenant under a Lease which ends on a date prior to the Closing shall be applied first to any amounts due to Buyer and then, Date or (ii) that portion of a lease year or accounting period of such tenant covering a period prior to the extent Closing Date where such rents lease year or other income relate accounting period begins prior to the period ending on or before the ClosingClosing Date and ends thereafter, such rents or other income shall in both cases be paid to Seller within ten (10) days Contributor promptly after end of receipt by the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementCompany.
Appears in 2 contracts
Samples: Contribution Agreement (Phillips Edison - ARC Shopping Center REIT Inc.), Contribution Agreement (Phillips Edison - ARC Shopping Center REIT Inc.)
Prorations. The At Closing, the following prorations shall be prorated between Buyer and Seller made as of 11:59 p.m. local time of the day immediately preceding midnight on the Closing Date. Seller shall furnish to Purchaser and Title Company a draft Closing Statement three (3) days prior to the expected Closing Date containing the following pro-rations of income and expense and the apportionment of taxes:
(a) All collected rents and other income with respect to the Property, on the basis of the actual number of days elapsed during if any, for the month in which the Closing occurs: general , and special county real estate and city real personal property taxes and special other assessments (collectively, "Taxes") with respect to the Property for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the date of Closing. Rents If the Closing shall occur before all of the rents from the Property have actually been paid for the month in which the Closing occurs, the apportionment of any such rent shall be upon the basis of such rents actually received by the Seller. Subsequent to the Closing, if any rents for the month of closing, or for prior rental periods, are actually received by Purchaser, promptly after its receipt of such rents, Purchaser shall apply first, to satisfy such tenant’s current due and owing rent obligations relating to the period after the Closing Date; second, to satisfy such delinquent rent obligations relating to the period in which the Closing Date occurred; and third, to satisfy such delinquent rent obligations relating to the period prior to the Closing Date. Purchaser shall make a good faith effort and attempt to collect any such rents not apportioned at the Closing, for the benefit of Seller. Purchaser shall receive credit against the Purchase Price for the amount of any refundable and non-refundable security deposits and fees for which the Seller is accountable (plus accrued interest thereon as required by law), cleaning, administrative, redecorating, pet, key or other incomedeposits and fees (with the exception of application fees) and prepaid rentals for a later calendar month. Upon Closing, Purchaser shall assume Seller’s obligations for such fees as noted herein to the extent Purchaser has received credit against the Purchase Price for such fees. Purchaser will defend, indemnify, and hold Seller harmless from and against all demands and claims made by tenants arising out of the transfer or disposition of any security deposits or other fees credited to Purchaser. Seller will indemnify and hold Purchaser harmless from and against any demands and claims made by tenants arising out of any security deposits not credited to Purchaser. For utility charges, Seller and Purchaser shall use their best efforts to cause all utility xxxxxxxx to be closed and billed by the respective utility companies as of the Closing Date in order that utility charges may be separately billed for the periods prior to and after the Closing Date. In the event any such utility charges are not separately billed, the same shall be prorated. In connection with any such proration, it shall be presumed that utility charges were uniformly incurred during the billing period in which the Closing Date occurs.
(b) If the Closing shall occur before the tax rate or the assessed valuation of the Property is fixed for the then current year, the apportionment of taxes shall be upon one hundred five percent (105%) the basis of the tax rate for the preceding year applied to the latest assessed valuation. Subsequent to the Closing, when the tax rate and the assessed valuation of the Property is fixed for the year in which the Closing occurs, the parties agree to adjust the proration of taxes and, if necessary, to refund or repay such sums as shall be necessary to effect such adjustment; provided, however, if the taxes for such period increase due to a valuation of the Property that is due solely to the sale of the Property to Purchaser, Seller shall not be allocated any portion of said increase resulting from such revaluation. Seller shall pay all special tax assessments, if any, collected by Buyer after pending against the Closing shall be applied first to any amounts due to Buyer and then, Property prior to the extent such rents or Closing.
(c) The monthly installment of principal and interest and any other income relate charges due under the Existing Loan with respect to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation Closing occurs will be prorated as of the Closing Date, Seller will transfer its interest in all escrows held by VHDA to Purchaser, and Purchaser will pay to Seller at Closing, in addition to the Purchase Price, the principal amount of all such escrows, provided that Seller assigns the escrows and VHDA acknowledges the transfer. However, if VHDA does not permit Seller to assign the escrows to Purchaser or the transfer of the escrows is otherwise impractical, Seller shall be entitled to receive the full amount of all escrow accounts, Purchaser shall have no interest in any funds escrowed or deposited by Seller with VHDA, and Purchaser shall be responsible for Buyer's failure to collect such rentals or other income. All security funding all escrows as required by VHDA.
(d) Seller shall be charged, and the Purchaser credited, with interest accrued but unpaid on the indebtedness secured by the First Deed of Trust, together with any other refundable deposits paid by tenants to monthly charges and amounts normally due thereunder through the Closing.
(e) Seller pursuant to tenant leases shall be delivered by certified credited, and Purchaser charged, for the existing balances as of the date of Closing for all escrow, reserve and deposit accounts or funds held for the holder of the First Deed of Trust for real and personal property ad valorem taxes, insurance, replacement reserves, debt service reserves for principal and interest, rebate reserves, and the like, all of which account balances shall be transferred to Buyer Purchaser at Closing.
(f) Any xxxxx cash maintained at the Closing or, Property for day-to-day operations shall remain the property of Seller at Seller's option, credited to Buyer against the cash portion Closing.
(g) The agreements of the Purchase Price at Seller and Purchaser set forth in this Section 6.3 shall survive the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (Berkshire Income Realty Inc), Purchase and Sale Agreement (Berkshire Income Realty Inc)
Prorations. The following items shall be prorated between Buyer Seller and Seller Purchaser (with Purchaser deemed to be holding title as of 11:59 p.m. local time of the day immediately preceding the Closing Date):
a. All ad valorem and other real estate taxes with respect to the Property (collectively, the “Taxes”) shall be prorated as of 12:01 a.m. on the Closing Date. If the Closing shall occur before the tax rate is fixed for the then current year, the apportionment of the Taxes shall be made upon the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") tax rate for the immediately preceding tax period then in effect and insurance premiums year applied to the latest assessed valuation of the Property. Within thirty (but only if Buyer is assuming Seller's insurance policy or policies). Proration 30) days after the actual amount of the Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occursoccurs are determined, with due allowance to be made for Seller and Purchaser shall adjust the maximum available discount proration of the Taxes and Seller or other exemptions Purchaser, as the case may be, shall pay to the extent permissible for said year, other any amount required as a result of such adjustment. All unpaid taxes and to the extent the tax bills do not accurately reflect the actual Taxes taxes assessed against the Property for prior years due to a change in use or ownership of the Property shall be paid by Seller. Notwithstanding the foregoing, there will be no proration of taxes between the parties pursuant to this provision for which the payor is entitled to or has received a reimbursement from USPS.
b. All rent and other amounts payable under the Lease shall be prorated as of 12:01 a.m. on the Closing Date. Seller shall be charged with and Purchaser shall receive a credit against the Purchase Price for (i) any rent and other amounts collected by Seller prior to the Closing Date, but applicable to any period after the Closing Date and (ii) any security deposits held by Seller and prepaid rents received by Seller under the Lease. Rent is deemed to be delinquent when payment thereof is due on or prior to Closing but has not been made by Closing. Delinquent rent shall be prorated between Purchaser and Seller as of the Closing as if Seller had received such rent and consequently, Seller shall not be entitled to any credit or increase to the Purchase Price as a result of such delinquent rent. Seller is permitted to pursue Tenant for delinquent rent that was due prior to Closing, but agrees to do so in a commercially reasonable manner (provided, however, that: (a) Seller shall not seek to have Tenant’s possession of the Land and the Improvements under the Lease terminated; and (b) Seller shall not be entitled to any rent received from Tenant after the Closing unless Tenant is current in its rent obligations to Purchaser for periods occurring from and after Closing). Delinquent rent collected by Purchaser (if any), net of the costs of collection (including attorneys’ fees), shall be applied first against those amounts currently due (or any portion of the Propertyto be due within ten (10) days) and allocable either then to amounts most recently overdue. Any payments due to Seller as a result of collected delinquent rent shall be payable by Purchaser to Seller upon receipt thereof. In the period before event Seller receives the Closing or to the period rental check from Tenant after the Closing, then Buyer and Seller shall adjust it was not a part of the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionmentsrent proration, Seller shall receive all immediately remit to Purchaser the full amount of the check received. Both parties acknowledge that USPS rents and other income accruedare paid in arrears, at the end of month, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, be adjusted accordingly.
c. All other income and operating expenses of the Property, including, without limitation, public utility charges, maintenance, management, and other service charges, and all other normal operating charges shall be prorated as of the Closing. Rents Closing Date based upon the best available information (it being understood that, unless otherwise indicated, Seller shall pay all amounts due with respect to the Property that accrue prior to the Closing Date), or, in Purchaser’s sole discretion, moved into Purchaser’s name as of the Closing Date.
d. With respect to leasing commissions, tenant finish costs, costs associated with architectural plans and other incomespecifications, utility splits, and demising costs, if any, collected by Buyer after the Closing Seller shall be applied first to any amounts due to Buyer and then, to responsible for the extent payment of all such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price costs at the Closing. Escrow Holder .
e. For purposes of proration only, Purchaser is deemed to own the Property on the Closing Date.
f. This Section 3.06 shall not be concerned merge with any prorations that are to be made after the Closing pursuant to this AgreementDeed and shall survive the Closing.
Appears in 2 contracts
Samples: Agreement of Purchase and Sale (Postal Realty Trust, Inc.), Agreement of Purchase and Sale (Postal Realty Trust, Inc.)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing DateAll current rent (including without limitation percentage rent), on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectivelyestate taxes, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurscommon area charges, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said yearutility charges, and to other obligations of Seller under the extent - 7 - Leases or income or obligations of Seller under the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) Subleases and allocable either to the period before the Closing or to the period after the ClosingLicenses, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the ClosingEffective Time with respect to each Assumed Lease Store in accordance with the payment terms of the Lease applicable thereto (collectively the "Prorated Charges"). Rents and other incomeWhenever possible, if any, collected by Buyer after the Closing such prorations shall be applied first based on actual, current payments by or income to any amounts due to Buyer Seller and then, to the extent such rents or other income relate actual amounts are not available, such prorations shall be estimated as of the Effective Time for the applicable Store based on actual amounts for the most recent comparable billing period and such prorations shall be final (absent manifest error) without further reconciliations. Notwithstanding anything to the period ending on or before contrary in this Agreement, for any Lease for which a proration is not set forth in a Lease, for the ClosingNew Leases, such rents or other income and for the Fixed Assets, the property taxes shall be paid to prorated on a "calendar year or lien basis" for any such Assumed Leased Store, Owned Store or Fixed Asset not located in Xxxxx County, and on a "last tax due date basis" for any such Assumed Leased Store, Owned Store or Fixed Asset located in Xxxxx County. Seller within shall pay the Buyer a pro rata amount of percentage rent payable by Buyer under a Lease for an Assumed Lease Store for the lease year including the Effective Time for such Lease, not later than ten (10) business days after end prior to the date that Buyer is obligated to pay such percentage rent. Seller's prorated share shall be determined by multiplying (A) a fraction, the numerator of which is the amount of Seller's gross annual sales at such Assumed Lease Store from the first day of such lease year to (but not including) the Effective Time for the applicable Store, and the denominator of which is the sum of Buyer's and Seller's gross annual sales at such store for the entire lease year, times (B) the amount of percentage rent actually due under the Lease for such Assumed Lease Store. Seller, upon the request of Buyer, shall promptly provide the Buyer such information as Buyer shall be required to submit to landlords under the Leases in connection with the payment of percentage rent with respect to an Assumed Lease Store. Notwithstanding any of the month foregoing, the fixed percentage rent set out in which such amounts were collected. Buyer shall incur no obligation the Fourth Amendment to Seller Lease for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases Store #6103 of $106,145.40 shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion prorated on a per diem basis as of the Purchase Price at Effective Time for the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementapplicable Store based on a lease year commencing July 1, 2007, and ending June 30, 2008.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Spartan Stores Inc), Asset Purchase Agreement (Spartan Stores Inc)
Prorations. Income and expenses from the operation of the System ---------- through the Closing Date shall be for the account of Seller and after the Closing Date for the account of Buyer. The following items of income, cost and expense shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, Date (or such other date or dates as the parties may hereafter agree upon in writing) in the manner set forth below:
(a) Subscriber and other revenue shall be prorated on the basis of the actual number of days of the time period to which such revenue relates elapsed through the Closing Date, provided that subscriber and other revenue represented by accounts receivable shall be for the account of Seller, only to the extent that (i) such accounts receivable have been outstanding less than Sixty-One (61) days as of the Closing Date based on a statement certified by authorized officers to be true, correct and complete to the best of such officers' information, knowledge and belief and (ii) the aggregate amount of such accounts receivable is reduced by Five Percent (5%) of the amount thereof. For purposes of this Section 5.1(a), an account receivable shall be deemed outstanding for the number of days elapsed during from the month in which date of the statement giving rise to such account receivable through and including the Closing occurs: general Date;
(b) Copyright, pole attachment or other fees or charges, not delinquent, arising under any of the Franchises, Authorities and special county Assumed Contracts, or otherwise shall be prorated on the basis of the number of days of the time period to which such fees or charges relate elapsed through the Closing Date;
(c) All real and city real personal property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy levied or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property Assets and all assessments and excise taxes payable with regard to cable television services and related sales to Subscribers (or any portion excluding penalties and interest and except such taxes as are referred to in Section 3.2) shall be prorated on the basis of the Property) and allocable either to number of days of the relevant tax year or period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before elapsed through the Closing Date, based on the latest available information;
(d) Rents, utilities and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and similar recurring expenses shall be prorated as on the basis of the Closing. Rents number of days of the time period to which such expenses relate elapsed through the Closing Date; and
(e) Wages, salaries, payroll taxes (other than withholding taxes) and other income, if any, collected by fringe benefits of employees who continue in the employ of Buyer after the Closing Date shall be applied first prorated on the basis of the number of working days (including paid holidays) during the payroll period through the Closing Date relative to the total number of such days during that payroll period, provided that any amounts due wages, salaries or other benefits payable to Buyer and thenor for any employee on account of that employee's termination of employment shall not be prorated but shall be paid by the party which effects the termination of that employee's employment;
(f) Accrued vacation shall be prorated separately on the basis of the number of vacation days accrued through the Closing Date relative to the maximum number of vacation days accruable under the established policies of Seller as set forth in its Associate Policy Guide, a copy of which has been delivered to Buyer; and
(g) Any income or expense under any Assumed Contract, to the extent such rents or other income relate not expressly referred to above in this Section 5.1, shall be prorated on a basis reasonably related to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in basis upon which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals income or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementexpense is determined.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Ids Jones Growth Partners 87-a LTD/Co/), Asset Purchase Agreement (Ids Jones Growth Partners 87-a LTD/Co/)
Prorations. The At Closing, the following prorations shall be prorated between Buyer and Seller made as of 11:59 p.m. local time of the day immediately preceding midnight on the Closing Date. Seller shall furnish to Purchaser and Title Company a draft Closing Statement three (3) days prior to the expected Closing Date containing the following pro-rations of income and expense and the apportionment of taxes:
(a) All collected rents and other income with respect to the Property, on the basis of the actual number of days elapsed during if any, for the month in which the Closing occurs: general , and special county real estate and city real personal property taxes and special other assessments (collectively, "Taxes") with respect to the Property for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the date of Closing. Rents If the Closing shall occur before all of the rents from the Property have actually been paid for the month in which the Closing occurs, the apportionment of any such rent shall be upon the basis of such rents actually received by the Seller. Subsequent to the Closing, if any rents for the month of closing, or for prior rental periods, are actually received by Purchaser, promptly after its receipt of such rents, Purchaser shall apply first, to satisfy such tenant’s current due and owing rent obligations relating to the period after the Closing Date; second, to satisfy such delinquent rent obligations relating to the period in which the Closing Date occurred; and third, to satisfy such delinquent rent obligations relating to the period prior to the Closing Date. Purchaser shall make a good faith effort and attempt to collect any such rents not apportioned at the Closing, for the benefit of Seller. Purchaser shall receive credit against the Purchase Price for the amount of any refundable and non-refundable security deposits and fees for which the Seller is accountable (plus accrued interest thereon as required by law), cleaning, administrative, redecorating, pet, key or other incomedeposits and fees (with the exception of application fees) and prepaid rentals for a later calendar month. Upon Closing, Purchaser shall assume Seller’s obligations for such fees as noted herein to the extent Purchaser has received credit against the Purchase Price for such fees. Purchaser will defend, indemnify, and hold Seller harmless from and against all demands and claims made by tenants arising out of the transfer or disposition of any security deposits or other fees credited to Purchaser. Seller will indemnify and hold Purchaser harmless from and against any demands and claims made by tenants arising out of any security deposits not credited to Purchaser. For utility charges, Seller and Purchaser shall use their best efforts to cause all utility xxxxxxxx to be closed and billed by the respective utility companies as of the Closing Date in order that utility charges may be separately billed for the periods prior to and after the Closing Date. In the event any such utility charges are not separately billed, the same shall be prorated. In connection with any such proration, it shall be presumed that utility charges were uniformly incurred during the billing period in which the Closing Date occurs.
(b) If the Closing shall occur before the tax rate or the assessed valuation of the Property is fixed for the then current year, the apportionment of taxes shall be upon one hundred five percent (105%) the basis of the tax rate for the preceding year applied to the latest assessed valuation. Subsequent to the Closing, when the tax rate and the assessed valuation of the Property is fixed for the year in which the Closing occurs, the parties agree to adjust the proration of taxes and, if necessary, to refund or repay such sums as shall be necessary to effect such adjustment; provided, however, if the taxes for such period increase due to a valuation of the Property that is due solely to the sale of the Property to Purchaser, Seller shall not be allocated any portion of said increase resulting from such revaluation. Seller shall pay all special tax assessments, if any, collected by Buyer after pending against the Closing shall be applied first to any amounts due to Buyer and then, Property prior to the extent such rents or other income relate to Closing.
(c) Intentionally omitted
(d) Intentionally omitted
(e) Intentionally omitted
(f) Any xxxxx cash maintained at the period ending on or before Property for day-to-day operations shall remain the property of Seller at Closing.
(g) The agreements of Seller and Purchaser set forth in this Section 6.3 shall survive the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (Berkshire Income Realty Inc), Purchase and Sale Agreement (Berkshire Income Realty Inc)
Prorations. The following shall (a) Ad valorem taxes and assessments (whether for real estate or personal property) against the Property will be prorated between Buyer and Seller at Closing as of 11:59 p.m. local time the Closing Date based on the tax bills for the year of the day immediately preceding Closing. Buyer will receive at Closing a credit against the Purchase Price in an amount equal to the portion of the taxes and assessments on the Property from the beginning of the current year to the Closing Date. If Closing occurs before that year's tax bills are available, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall proration will be based on the most recent official latest tax bills or notice of valuation available rate applied to the latest unappealed tax value. If an estimated proration is made, then after the taxes and assessments for the fiscal year in which the Closing occursoccurs are finally assessed, with due allowance within 30 days after demand, Buyer shall refund to be made for Seller any amount overpaid by Seller or Seller shall pay to Buyer the maximum available discount or other exemptions to amount of any deficiency in the extent permissible for said year, proration. Buyer shall pay all taxes and to the extent the tax bills do not accurately reflect the actual Taxes assessed assessments against the Property before they become delinquent.
(or any b) All income and expenses of the Real Property and Improvements (other than ad valorem taxes and assessments) will be prorated at Closing as of the Closing Date on an accrual basis. All rents actually prepaid for a portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property term on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer offset against the cash portion of Purchase Price. All other income and expense items subject to proration pertaining to the Purchase Price period prior to the Closing Date will be allocated to and paid by Sellers and all income and expense items subject to proration pertaining to the period starting on the Closing Date will be allocated to and paid by Buyer. Seller is responsible for Lease commissions due Seller's employees and locator fees for Leases under which the tenant moves into a unit prior to the Closing Date. Buyer is responsible for locator fees for Leases under which the tenant moves into a unit on or after the Closing Date. All application fees which are not prepaid security deposits shall be retained by Seller. Any income payable in connection with any Service Contract will be prorated, but no lump sum or up front payments paid to Seller with respect to any Service Contract will be prorated. Rent will be prorated based on the Rent Roll provided by Seller at the Closing. Escrow Holder No later than 3 business days prior to the Closing Date, Buyer and each Seller shall not be concerned with mutually approve and provide to Closing Agent a schedule of prorations in as complete and accurate a form as possible. No later than 60 days after Closing, Seller and Buyer shall make appropriate post-closing adjustments to the prorations of income and expenses but in no event will any prorations that are to readjustment be made after the 60th day after the Closing pursuant Date, other than a readjustment of ad valorem taxes and assessments.
(c) All Deposits paid as refundable security for rent, cleaning, pet deposits, or any other purposes will be paid to Buyer at Closing and the obligation, if any, to refund the cash deposits to tenants is assumed by Buyer. Except as provided in SECTION 6.3(d), no non-refundable deposits or fees paid by tenants shall be paid or payable to Buyer.
(d) Any amounts of so-called "hassle free move-out" payments paid to Seller for current leases on the Properties shall be equally split between Seller and Buyer and, at Closing, Seller shall pay to Buyer its share thereof.
(e) All deposits and escrows made by Seller with the respective Lenders will be delivered to the Sellers at Closing and will be retained by the Seller or will be credited to the Seller at Closing.
(f) The obligations of Sellers and Buyer under this AgreementSECTION 6.3 survive the Closing.
Appears in 2 contracts
Samples: Contract of Sale (Education Realty Trust, Inc.), Contract of Sale (Education Realty Trust, Inc.)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local If the Purchase Price is received by Seller’s depository bank in time of the day immediately preceding to credit to Seller’s account on the Closing Date, on the basis day of the actual number of days elapsed during the month in which the Closing occurs: general shall belong to Buyer and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance all prorations hereinafter provided to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion as of the Property) and allocable either to Closing shall each be made as of the period before end of the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property day before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against If the cash portion of the Purchase Price at is not so received by Seller’s depository bank on the ClosingClosing Date, then the day of Closing shall belong to Seller and such proration shall be made as of the end of the day that is the Closing Date. Escrow Holder In each such proration set forth below, the portion thereof applicable to periods beginning as of Closing shall be credited to Buyer or charged to Buyer as applicable and the portion thereof applicable to periods ending as of Closing shall be credited to Seller or charged to Seller as applicable. The parties acknowledge and agree that the Lease is a fully triple net lease such that Buyer, as tenant, is responsible to pay directly, or reimburse Seller for, any and all expenses incident to the ownership, operation and maintenance of the Premises, in each case as required under the Lease. As a result, the parties shall not be concerned engage in normal and customary prorations. However, at Closing, Buyer shall pay or credit to Seller any and all of the following: (i) all Rent (as defined in the Lease) owing from Buyer, as tenant, to Seller (such amounts, “Rental Amounts”) under the Lease for the portion of the month in which closing occurs occurring prior to Closing and any period prior to Closing to the extent not previously paid by Buyer to Seller, including, but not limited to, any rental delinquencies; and (ii) all sums advanced or paid by Seller for real estate taxes, operating expenses, general assessments or special assessments related to the Premises for any period prior to or subsequent to the Closing to the extent not previously paid or reimbursed by Buyer, including, but not limited to, real estate taxes paid by Seller with respect to any prorations period prior to or subsequent to the Closing and not yet reimbursed. At Closing, Seller shall credit to Buyer any Rental Amounts paid by Buyer that are allocable to be made the period from and after Closing; provided, however, that Seller shall retain all amounts of additional rent previously paid by Buyer to Seller on account of common area maintenance expenses, real estate taxes, insurance expenses or other expenses to the extent incurred by Seller on account of expenses allocable to the Premises prior to or after Closing pursuant to this Agreementand previously paid by Seller.
Appears in 2 contracts
Samples: Lease Agreement (Isis Pharmaceuticals Inc), Lease Agreement (Isis Pharmaceuticals Inc)
Prorations. The following All items which would normally and customarily be prorated in a real estate sale, including real estate taxes, personal property or use taxes, and sales taxes, installments of general and special assessments due and payable in the year of Closing, utility bills, annual installments of any assessment, amounts due or revenues under the Assumed Property Contracts and any prepaid amounts related to the foregoing, shall be prorated between Buyer and Seller as of 11:59 p.m. local time of on the day immediately preceding before the Closing Date, with Seller being charged and credited for all of same prior to the Closing Date, and Purchaser being charged and credited for all of same on and after the Closing Date. Rent and other amounts due by the GSA Tenant under the GSA Lease will be prorated as of the Closing Date and will be paid to the party entitled to receive such payment promptly upon being collected. Taxes will be prorated using the maximum discount allowed by law. If the actual amounts of certain agreed upon items to be prorated are not known as of the Closing Date, the prorations shall be made on the basis of the actual number of best evidence then available; provided that, within one hundred twenty (120) days elapsed during the month in after Closing, Purchaser and Seller will make a further adjustment for all such amounts which may have accrued or been incurred prior to the Closing occurs: general and special county and city Date (including, but not limited to, real property taxes and special assessments (collectivelyestate taxes), "Taxes") for but not received or paid at that date. In the tax period then event that any item of income or expense is prorated at Closing in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy error or policies). Proration of Taxes shall be based on the most recent official tax bills basis of an estimate, or notice if it is determined that the parties failed to prorate an item at Closing which should have been prorated, Purchaser and Seller agree to make a further adjustment of valuation available for the fiscal year in which the Closing occurs, with due allowance such item(s) at a final reconciliation to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property performed within one (or any portion of the Property1) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or year after the Closing Date, all of which rents, other income and expenses shall be prorated as of . To the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first extent that either party is required to any amounts due to Buyer and then, pay to the extent other any sum based on the foregoing post-Closing adjustments of prorated items, Purchaser and Seller each agree to make such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller payments within ten fifteen (1015) days after end of the month in which such amounts were collectedpost-Closing adjustments have been calculated and agreed to. Buyer This provision shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the survive Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Samples: Contract of Sale (US Federal Properties Trust Inc.), Contract of Sale (US Federal Properties Trust Inc.)
Prorations. The following shall be prorated between (a) Seller and Buyer and Seller agree to adjust, as of 11:59 p.m. local time of on the day immediately preceding the Closing Date, Date (the “Proration Time”) on the basis of then applicable six (6) month real property tax billing period, the actual number of days elapsed during following (collectively, the month in which the Closing occurs: general “Proration Items”): real estate and special county and city real personal property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions subject to the extent permissible for said yearterms of Section 9.7.1(b) below), utility bills (except as hereinafter provided), and collected Rents (subject to the extent terms of Section 9.7.1(b) below) payable by the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion owner of the Property) . Seller will be charged and allocable either credited for the amounts of all of the Proration Items relating to the period before up to and including the Closing or Proration Time, and Buyer will be charged and credited for all of the Proration Items relating to the period after the Proration Time. Such preliminary estimated Closing prorations shall be set forth on a preliminary closing statement to be prepared by Seller and submitted to Buyer for Buyer’s approval prior to the Closing Date (the “Closing Statement”). Seller agrees that twenty-four (24) hours prior to the Closing, then Seller will discontinue data entry operations in the on-site computer system, including making deposits of rental income and will forward final reports as soon as practicable to Buyer’s representative so as to enable Buyer and Seller to work together to transition the management of the Property and complete work on prorations as set forth herein. The Closing Statement, once agreed upon, shall adjust the actual Taxes between be signed by Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition Seller and delivered to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with Escrow Agent for purposes of making the ownership or operation of Property before the preliminary proration adjustment at Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, subject to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income final cash settlement provided for below. The preliminary proration shall be paid at Closing by Buyer to Seller within ten (10if the preliminary prorations result in a net credit to Seller) days after end of or by Seller to Buyer (if the month preliminary prorations result in which such amounts were collected. Buyer shall incur no obligation a net credit to Seller for Buyer's failure ) by increasing or reducing the cash to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion in payment of the Purchase Price at the Closing. Escrow Holder If the actual amounts of the Proration Items are not known as of the Proration Time, the prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received (not to exceed 120 days after closing), re-prorations will be made on the basis of the actual figures, and a final cash settlement will be made between Seller and Buyer. No prorations will be made in relation to insurance premiums, and Seller’s insurance policies will not be assigned to Buyer. The provisions of this Section 9.7.1(a) will survive the Closing for a period of twelve (12) months.
(b) Buyer will receive a credit on the Closing Statement for the prorated amount (as of the Proration Time) of all Rent previously paid to or collected by Seller and attributable to any period following the Proration Time. Rents are “Delinquent” when they were due prior to the Closing Date, and payment thereof has not been made on or before the Closing Date. Delinquent Rents will not be prorated. All sums collected by Buyer from and after Closing from each Tenant will be applied first to current amounts owed by such Tenant and then to Delinquent Rent owed by such Tenant to the extent not previously collected by Seller. Buyer shall deliver to Seller all Delinquent Rent collected hereunder on a monthly basis within five (5) days of the end of each calendar month. Buyer shall not have an exclusive right to collect any sums due Seller from Tenant under the Leases and Seller hereby retains the right to collect any sums due Seller from Tenants under the Leases for any sums due Seller for period attributable to Seller’s ownership of the Property; provided, however, Seller shall not be concerned with permitted to commence or pursue any prorations that are to be made after legal proceedings including eviction against any current Tenant. The provisions of this Section 9.7.1(b) will survive the Closing pursuant to this AgreementClosing.
Appears in 2 contracts
Samples: Agreement of Sale and Purchase (Behringer Harvard Multifamily Reit I Inc), Agreement of Sale and Purchase (Behringer Harvard Multifamily Reit I Inc)
Prorations. The following All utility accounts at the Facilities shall be read as of the Effective Time, and Seller shall be responsible for all utility charges prior to such reading and Buyer shall be responsible for all utility charges primarily related to the Business thereafter. All rent and other charges due under the Contracts shall be prorated between Seller and Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding Effective Time. Except with respect to real and personal property Taxes subject to Tax abatement or incentive arrangements which are allocated in accordance with the Closing Datefollowing sentence, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general real and special county personal property Taxes, assessments and city real property taxes and special assessments (collectivelysimilar items, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occursany, due with due allowance to be made for the maximum available discount or other exemptions respect to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses Assets shall be prorated as of the Closing. Rents Effective Time, and other incomeall such Taxes, if any, collected by Buyer after assessments and similar items allocable to any period prior to the Closing Effective Time shall be applied first paid by Seller, and all such Taxes, assessments and similar items allocable to any amounts due to Buyer and then, period subsequent to the extent Effective Time shall be paid by Buyer. With respect to real and personal property Taxes which are subject to Tax abatement or incentive arrangements, the portion of such rents or other income relate Taxes that shall be allocable to the period ending on or before as of the Closing, such rents or other income Effective Time shall be paid to Seller within ten (10) days after end computed as if such period ended and the books of the month in which such amounts Business were collected. Buyer closed each as of the Effective Time; provided, however, the foregoing shall incur no obligation not relieve Seller of any liability or responsibility under Section 11.13 and shall not apply if and to Seller for Buyer's failure the extent the result would be to collect such rentals or other income. All security and any other refundable deposits paid by tenants allocate to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against period after the cash Effective Time more than a pro rata portion of the Purchase Price at amount of any such Tax determined as if there were no abatement or incentive for any portion of the Closingactual Tax period. Escrow Holder shall not be concerned with Notwithstanding any prorations that are to be made after the Closing pursuant to other provision of this Agreement, (i) if Seller pays any amount allocated to Buyer under this Section 17 Buyer will reimburse Seller upon demand for the amount paid to the extent it is not reflected as an asset on the final Statement of Net Working Capital; and (ii) if Buyer pays any amount allocated to Seller under this Section 17 Seller will reimburse Buyer upon demand for the amount paid to the extent it is not reflected as a liability on the final Statement of Net Working Capital. Notwithstanding the above, there shall be no duplication of adjustments reflected in the final Statement of Net Working Capital.
Appears in 2 contracts
Samples: Asset Purchase Agreement, Asset Purchase Agreement (Smithfield Foods Inc)
Prorations. 5.4.1 The following provisions shall govern the adjustments and prorations that shall be prorated made at Closing and the allocation of income and expenses from the Property between Buyer Seller and Seller Purchaser. Except as expressly provided in this Section 5.4.1, all items of operating revenue and operating expenses of the Property, with respect to the period prior to and ending at 11:59 p.m. local time of at the Property on the day immediately preceding the Closing DateDate (the “Cut-off Time”), shall be for the account of Seller and all items of operating revenue and operating expenses of the Property with respect to the period from and after the Cut-off Time, shall be for the account of Purchaser. Without limitation on the foregoing the following shall be prorated between Purchaser and Seller as of the Cut-off Time:
(a) All non-delinquent real estate taxes, water charges, sewer rents, vault charges and assessments on the Property on the basis of the actual number fiscal year for which assessed. In no event shall Seller be charged with or be responsible for any increase in the taxes on the Property resulting from the sale of days elapsed during the month in which Property or from any improvements made or leases entered into on or after the Closing occurs: general and special county and city real property taxes and special Date. If any assessments (collectivelyon the Property are payable in installments, "Taxes") then the installment for the tax current period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on prorated (with Purchaser assuming the most recent official tax bills or notice of valuation available for the fiscal year in which obligation to pay any installments due after the Closing occursDate).
(b) Subject to this Section 5.4.1(b), with due allowance to be made for all fixed rent and regularly scheduled items of additional rent under the maximum available discount or other exemptions to the extent permissible for said yearLeases, and other tenant charges if, as and when received. Seller shall deliver or provide a credit in an amount equal to all prepaid rentals for periods after the Closing Date and all refundable cash security deposits (to the extent the tax bills do foregoing were made by tenants under the Leases and are not accurately reflect the actual Taxes assessed against the Property (applied or any portion of the Property) and allocable either forfeited prior to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer ) to Purchaser on the Closing Date. Rents which are delinquent as of the Closing Date shall receive all rents and other income accruing, not be prorated on the Closing Date. Purchaser shall include such delinquencies in its normal billing and shall pay all other expenses accrued diligently pursue the collection thereof in good faith after the Closing Date (but Purchaser shall not be required to litigate or incurred, declare a default in connection with any Lease and in no event shall Purchaser incur any liability to Seller for failure to collect such delinquencies). To the ownership or operation of Property extent Purchaser receives rents on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing such payments shall be applied first to any amounts due to Buyer and then, to toward the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of for the month in which such payment is collected, second to the rents for the month in which Closing occurs, third to any delinquent rents owed to Seller, with Seller’s share thereof being held by Purchaser in trust for Seller and promptly delivered to Seller by Purchaser, and fourth toward any rents that shall then be due and payable to Purchaser. Purchaser may not waive any delinquent rents nor modify a Lease so as to reduce or otherwise affect amounts were collectedowed thereunder for any period in which Seller is entitled to receive a share of charges or amounts without first obtaining Seller’s written consent. Buyer Seller reserves the right to pursue any remedy against any tenant owing delinquent rents and any other amounts to Seller (but shall not be entitled to terminate or threaten to terminate any lease or any tenant’s right to possession), which right shall include the right to continue or commence legal actions or proceedings against any tenant, provided that with respect to any rents or other amounts so collected by Seller, Purchaser’s share thereof, if any, shall be held by Seller in trust for Purchaser and promptly delivered to Purchaser by Seller following the conclusion of such legal action or proceeding, if any. Delivery of the Assignment and Assumption of Leases and Contracts shall not constitute a waiver by Seller of such right, and such right shall survive the Closing. Purchaser shall reasonably cooperate with Seller in any collection efforts hereunder (but shall not be required to litigate or declare a default under any Lease). With respect to delinquent rents and any other amounts or other rights of any kind respecting tenants who are no longer tenants of the Property as of the Closing Date, Seller shall retain all rights relating thereto.
(c) Tenants of the Property may be obligated to pay, as additional rent, certain percentage rent, escalations in base rent and pass throughs of operating and similar expenses pursuant to the terms of the Leases (collectively, “Additional Rents”). Seller shall send all tenants at the Property reconciliation statements for calendar year 2011 prior to Closing and shall remain exclusively liable for any Additional Rents attributable to such calendar year. Purchaser shall cooperate with Seller and the applicable tenants to conduct and conclude such reconciliation; provided, however, Purchaser shall not be required to incur any third party out-of-pocket costs or expenses in connection with such cooperation with Seller. If Seller collected estimated prepayments of Additional Rents during calendar year 2011 in excess of any tenant’s share of such expenses, then Seller shall be solely responsible for crediting or repaying those amounts to the appropriate tenants under the Leases. If Seller under-collected estimated prepayments of Additional Rents during calendar year 2011, then Seller shall be solely entitled to any reimbursement from the tenants with respect to such amounts and Purchaser shall promptly remit to Seller any amounts received by Purchaser from such tenants with respect to such Additional Rents if received after Closing; Purchaser shall reasonably cooperate with Seller to pursue the collection of any such amount in the ordinary course of business (but Purchaser shall not be required to incur any third party out-of-pocket costs or expenses in connection therewith or litigate or declare a default in any Lease and, provided that Purchaser shall have complied with the foregoing obligations, in no obligation event shall Purchaser incur any liability to Seller for Buyer's failure to collect such rentals amounts). With respect to any Additional Rents for calendar year 2012, the only proration to be made at Closing, if any, shall be a credit to Seller if Seller fully paid the operating expenses but did not receive payment of the Additional Rents for the period commencing on January 1, 2012 and ending on the Closing Date (the “Stub Period”), or a credit to Purchaser if Seller did not pay the operating expenses but received the Additional Rents for the Stub Period (in each case the credit being the amount of the Additional Rents billed to the tenants for the Stub Period). There shall be no further reconciliation after the Closing with respect to 2012 Additional Rents. Seller shall be entitled to collect any Additional Rents directly from tenants who are no longer in occupancy of space at the Property, to the extent relating to its period of ownership.
(d) Charges and payments under Contracts or permitted renewals or replacements thereof assigned to Purchaser pursuant to the Assignment and Assumption of Leases and Contracts and any fees or expenses in connection with any agreements recorded against the Property and which are not eliminated as an Unpermitted Exception pursuant to Section 4.1.
(e) Any prepaid items, including fees for licenses which are transferred to Purchaser at the Closing and annual permit and inspection fees required by applicable law.
(f) Utilities, including telephone, steam, electricity and gas, on the basis of the most recently issued bills therefor, subject to adjustment after the Closing when the next bills are available (but in no event later than one hundred twenty (120) days following the date of Closing), or if current meter readings are available, on the basis of such readings.
(g) Deposits with telephone and other income. All security utility companies, and any other refundable deposits paid by tenants persons or entities who supply goods or services in connection with the Property if the same are assigned to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price Purchaser at the Closing, which shall be credited in their entirety to Seller.
(h) Such other items as are customarily apportioned between sellers and purchasers of real properties of a type similar to the Property and located in the same geographic area as the Property, subject to Section 7.2.3(a).
5.4.2 At Closing Seller shall receive a credit for the “Purchaser Leasing Costs” (as defined below) incurred by Seller in connection with the “CytoSport Lease” (as defined below). Escrow Holder As used herein, the term “Purchaser Leasing Costs” shall mean any brokerage and leasing commissions (in an amount not be concerned to exceed $17,000), tenant improvement costs and other costs and expenses in connection with the lease with “CytoSport” (as defined below). If Purchaser has approved any prorations that are to be made extension, renewal or expansion of any existing Lease exercised or entered into from and after the Closing pursuant Effective Date in accordance with Section 7.2.3, then the parties shall agree to this Agreementprorate any cost or expense incurred in connection with such extension, renewal or expansion at the time of such approval. Notwithstanding the foregoing, Seller shall be solely responsible for any attorneys’ fees incurred by Seller in connection with the execution of the CytoSport Lease.
Appears in 2 contracts
Samples: Contract of Sale, Contract of Sale (Bebe Stores, Inc.)
Prorations. The following shall be prorated apportioned on a per diem basis as of 12:01 a.m. of the Closing Date ("Adjustment Date") and adjusted between Buyer the parties on the basis of the number of days in the month of the Closing with respect to each Property for items that are payable on a monthly basis and, for items that are not paid on a monthly basis, such items shall be adjusted on the basis of the number of days applicable to such period, with Seller receiving a credit for all amounts prepaid by Seller for any period from and after the Closing Date and Seller as of 11:59 p.m. local time of charged with any unpaid charges for the day immediately preceding period prior to the Closing Date:
(a) Real estate and other taxes, assessments and charges, and other municipal and State charges, license and permit fees, water and sewer rents and charges, if any, on the basis of the actual number fiscal period for which assessed or charged;
(b) Water, electric, gas, steam and other utility charges for service furnished to the Property;
(c) Fuel, if any, and all taxes thereon, on the basis of days elapsed during a reading taken as close as possible to the Adjustment Date;
(d) Base rents and any other rental payments (the "Rents") paid under the terms of the Leases for the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or thereafter;
(e) Any amounts paid or payable under any Service Contracts being assigned to the period after the Closing, then Buyer Buyer;
(f) All costs associated with telephone directory listings and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and any other income accrued, and shall pay all prepaid advertising;
(g) Any other expenses accrued or incurred, customary adjustments made in connection with the ownership or operation sale of Property before similar type buildings. There will be no proration of insurance costs at Closing. Except as may be otherwise provided herein, all other expenses and liabilities which are attributable to the period prior to the Closing DateDate shall be the obligation of Seller and those which are attributable to the period from and after the Closing Date shall be the obligation of Buyer. To the extent there are items of prepaid income, and Buyer shall receive all rents a credit attributable to the period from and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (Prudential Bache Ag Spanos Genesis Income Partners L P I), Purchase and Sale Agreement (Prudential Bache a G Spanos Realty Partners L P I)
Prorations. The following Buyer and Seller agree that all of the items normally prorated, including those listed below (but not including Income Taxes), relating to the Business and operation of the Assets shall be prorated between Buyer and Seller as of 11:59 p.m. local the Closing Date, with Seller liable for such items to the extent such items relate to any time period prior to the Closing Date, and Buyer liable for such items to the extent such items relate to periods commencing with the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days). The Base Purchase Price shall be increased to the extent Buyer will benefit financially due to Seller's payment prior to the Closing Date of the portion of any such item allocable to Buyer, and (except with respect to the items addressed in clause (a) below) shall be decreased to the extent Seller will benefit financially due to Buyer's payment on or after the Closing Date of the portion of any such item allocable to Seller. The items subject to proration include the following:
(a) Subject to Section 6.10(b), personal property, real estate and occupancy Taxes, assessments and other charges, if any, on or with respect to the Business and operation of the Assets;
(b) rent, Taxes (other than Income Taxes) and all other items (including prepaid services or goods not included in Inventories) payable by or to Seller under any of the Assigned Agreements to the extent not included in the account payables of the Business outstanding as of the day immediately preceding the Closing Date;
(c) any permit, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectivelylicense, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occursregistration, with due allowance to be made for the maximum available discount compliance assurance fees or other exemptions fees with respect to any Transferable Permit or other Asset;
(d) sewer rents and charges for water, telephone, electricity and other utilities with respect to the Assets;
(e) rent and Taxes payable by or to Seller under the Real Property Leases assigned to Buyer to the extent permissible for said year, and not included in the account payables of the Business outstanding as of the day immediately preceding the Closing Date;
(f) deposits made by Seller to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property transferred to Buyer;
(or any portion of the Propertyg) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and prepaid expenses paid by Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate transferred to Buyer; and
(h) petty cash held locally for the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end benefit of the month in which such amounts were collected. Buyer shall incur no obligation Business xx xxe extent transferred to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Citizens Communications Co), Asset Purchase Agreement (Citizens Communications Co)
Prorations. The following To the extent not included in the Assumed Reserved Liabilities, (i) Sellers shall be prorated between Buyer bear all personal property and Seller as of 11:59 p.m. local time of ad valorem Tax liability with respect to the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions Acquired Assets to the extent permissible for said yearsuch Tax relates to periods prior to the Closing, and (ii) Purchaser shall bear all personal property and ad valorem Tax liability with respect to the Acquired Assets to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) such Tax relates to periods from and allocable either to the period before the Closing or to the period after the Closing, then Buyer in each instance irrespective of the reporting and Seller payment dates of such Taxes. To the extent not included in the Assumed Reserved Liabilities, (i) Sellers shall adjust bear all salaries and other compensation payable to employees or officers who are Transferred Employees, and other recurring payments under Contracts that are Designated Contracts with respect to the actual Taxes between Buyer Acquired Assets to the extent such salaries and Seller, outside of Escrow, as soon as reasonably possible following compensation and recurring payments relate to periods prior to the Closing. In addition , and (ii) Purchaser shall bear all salaries and other compensation payable to employees or officers who are Transferred Employees and other recurring payments under Contracts that are Designated Contracts with respect to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and thenAcquired Assets, to the extent such rents or other income salaries and compensation and recurring payments relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days periods from and after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall To the extent not be concerned with any prorations included in the Assumed Reserved Liabilities, all other property Taxes, ad valorem Taxes, and similar recurring Taxes and fees on the Acquired Assets, and all salaries and other compensation payable to employees or officers who are Transferred Employees, and other recurring payments under Contracts that are Designated Contracts, shall be pro rated for the applicable period between Purchaser and the applicable Seller as of 12:01 a.m. local time on the Closing Date. All payments to be made after by Purchaser or any Seller in accordance with this Section 2.9 shall be made, to the extent then determinable within 5 Business Days of the determination of the Final Closing pursuant Net Current Assets, or to this Agreementthe extent not determinable as of the determination of the Final Closing Net Current Assets, promptly following the determination thereof, with such payments paid to the appropriate Party when due. Each Party shall have the right of reasonable review and approval of the other's property Tax Returns and assessments for which any other Party bears any economic responsibility. The Parties shall reasonably cooperate with respect to any review, contest, or challenge of any Tax Return or assessment. The Parties shall undertake a reconciliation and allocation procedure using the mechanism set out above for the reconciliation and allocation of payroll expenses and costs, and other recurring payments under Contracts that are Designated Contracts; it being understood that the processing and payment of vendor invoices shall be performed in accordance with the procedures set forth in Schedule 2.9 hereto.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Genesis Health Ventures Inc /Pa), Asset Purchase Agreement (Mariner Post Acute Network Inc)
Prorations. The following Except to the extent otherwise specifically provided for herein and except to the extent the Book Value of such Liabilities are not deducted from the Aggregate Purchase Price in accordance with Section 2.03(a), Schedule 2.03(a)(1) and Schedule 2.03(a)(2), (i) all payments under or pursuant to any Assumed Contract (including document custodial arrangements and applicable insurance policies) or Contract for the Seller Licensed Intellectual Property, (ii) all items of income and expense with respect to the Owned Real Property and the Leased Real Property, and (iii) all real and personal property Taxes related to the Purchased Assets, whether or not payable after the Second Closing Date, shall be prorated between Buyer the Sellers and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, Purchaser on the basis of a 365 day year, or for contracts payable on a monthly basis on the actual basis of a 30 day month, and the number of days elapsed during and days remaining in the month in which applicable period through the end of the Second Closing occurs: general Date. With respect to the real and special county and city real personal property taxes and special assessments (collectivelyTaxes, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes such proration shall be based on the most recent official tax bills or notice assessments of valuation available the real property and the personal property located thereon for the fiscal year in which Taxing period(s) prior to the Second Closing occurs, with due allowance Date and the then applicable Tax rates. With respect to be made any products sold (or services rendered) pursuant to any Assumed Contract or Contract for the maximum available discount or other exemptions Seller Licensed Intellectual Property, the Sellers and Purchaser shall use commercially reasonable efforts to arrange for vendors to xxxx the extent permissible for said yearSellers directly, through and to including the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Second Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or Purchaser directly after the Second Closing Date. To the extent that vendors xxxx the Sellers after the Second Closing Date for any such products or services provided after the Second Closing Date, all of which rentsthe Sellers shall forward such bills to Purchaser, other income and expenses Purchaser shall be prorated as of pay such bills when due. To the Closing. Rents and other income, if any, collected by Buyer extent that vendors xxxx Purchaser after the Second Closing Date for any such products or services provided before the Second Closing Date, Purchaser shall be applied first forward such bills to any amounts the Sellers, and the Sellers shall pay such bills when due to Buyer and then, to the extent such rents bills are not otherwise included in the calculation of the Aggregate Purchase Price or other income relate otherwise included in the True-up Payment. A final determination of all amounts prorated pursuant to this Section 2.03(g) shall occur at the time Purchaser prepares and delivers to the period ending on Sellers the Post-Closing Statement in accordance with Section 2.04, and any payment required by the Sellers or before the Closing, Purchaser pursuant to such rents or other income determination (“True-up Payment”) shall be paid to Seller within ten (10) days after end of the month reflected in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementAdjustment.
Appears in 2 contracts
Samples: Asset Purchase Agreement, Residential Servicing Asset Purchase Agreement (Nationstar Mortgage Holdings Inc.)
Prorations. The following items shall be prorated by the parties at the Closing Conference as of the Close of Escrow:
(a) Real property taxes and special assessments with respect to the Land and Improvements based upon the latest available tax information such that Seller shall be responsible for all such taxes levied against the Property and all installments of special assessments then payable, to and including the day prior to the earlier of the Close of Escrow or the “Commencement Date” of the Lease, and Buyer shall be responsible for all taxes levied against the Property and all installments of special assessments payable thereafter. In the event Seller receives any payment from FedEx for any taxes or assessments, Seller shall credit Buyer for all such amounts received. In the event the actual real property taxes and special assessments differ from the latest available information used to prorate such amounts, Buyer and Seller shall re-prorate such amounts promptly upon reciept of information regarding such actual amounts; and
(b) Rents and other receivables under the Lease (collectively, “Rents”) shall be accounted for as follows:
(i) Rents due and payable in the month of the Close of Escrow shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments that Seller has collected all current Rents;
(collectively, "Taxes"ii) for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on entitled to all Rents and other receivables accruing after the most recent official tax bills or notice Close of valuation available for the fiscal year in which the Closing occurs, with due allowance Escrow; and
(iii) Seller shall promptly remit to be made for the maximum available discount or other exemptions Buyer all sums received by Seller from FedEx (including advanced rentals) to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period accruing after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside Close of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all Escrow other than for rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and receivables for which Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementreceived credit hereunder.
Appears in 2 contracts
Samples: Purchase and Sale Agreement (O'Donnell Strategic Industrial REIT, Inc.), Purchase and Sale Agreement (O'Donnell Strategic Industrial REIT, Inc.)
Prorations. The Purchase Price set forth in Paragraph 3.0 is subject to the following shall be prorated between adjustments and prorations:
9.1 Plus an amount which will credit SELLER for lease payments which have been paid in advance for time periods on and after Closing ("Prepaid Leases"). Attached as Exhibit 9.1 is a list of Prepaid Leases which Buyer and Seller agree shall be added to the Purchase Price.
9.2 Minus the amounts which will credit Buyer for the following:
9.2.1 Any lease payments for which Buyer becomes obligated relating to any period of time prior to Closing.
9.2.2 Any advertising services delivered by Parent or Buyer on and after Closing for which Seller has already billed or otherwise receives payment.
9.2.3 All items of income and expense listed below relating to the Assets will be prorated as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions Seller liable to the extent permissible for said year, such items relate to any time period up to and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before including the Closing Date, and Buyer shall receive all liable to the extent such items relate to periods on or subsequent to the Closing Date; including without limitation (a) personal property, real estate, occupancy and water taxes, if any, on or with respect to the Assets; (b) rents, taxes and other items payable by Seller under any contract to be assigned to or assumed by Buyer; (c) the amount of sewer rents and charges for water, telephone, electricity and other income accruing, utilities and shall pay fuel; (d) all other expenses rentals that are or would be payable or have accrued pursuant to "percentage rental" lease provisions with respect to periods after the Closing Date; and (e) all items paid or incurred, in connection with the ownership or operation of Property payable on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to Date under any amounts due to Buyer and then, obligation specifically assumed to the extent such rents or other income relate not specifically referenced in clauses (a) - (d) above which are normally prorated in connection with similar transactions. A list of percentage leases with the date of expiration is attached hereto as Exhibit 9.2.3;
9.2.4 If current payments with respect to the period ending items to be prorated pursuant to this Section 9.2 are not ascertainable on or before the ClosingClosing Date, such rents or other income payments shall be paid prorated on the basis of the most recently ascertainable xxxx therefor and shall be reprobated between Seller and Buyer when the current bills with respect to Seller such items have been issued and a cash settlement shall be made within ten thirty (1030) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementthereafter.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Universal Outdoor Inc), Asset Purchase Agreement (Universal Outdoor Holdings Inc)
Prorations. The following All current rent, reimbursements and other income from the Property and all current taxes, assessments, utilities, maintenance charges and similar expenses of the Property, determined using the accrual method of accounting, shall be prorated between Buyer Optionor and Seller Optionee as of 11:59 p.m. local time the Closing Date and, to the extent of information then available, such prorations shall be made at the day immediately preceding Closing. Optionor and Optionee shall use their best efforts prior to the Closing Date to prepare a schedule of prorations covering as many items to be prorated as practicable so such prorations can be made at the Closing. Such prorations shall be adjusted, if necessary, and completed after the Closing as soon as final information becomes available. Optionor and Optionee agree to cooperate and to use their best efforts to complete such prorations no later than thirty (30) days after the Closing Date, except for any annual reconciliation of expense reimbursements payable by tenants which cannot be completed until the final accounting for the year has been prepared. Monthly income and expense items shall be prorated on the basis of a thirty (30) day month. Such income and expenses of the actual number of days elapsed during Property for the month in which period before the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") Date shall be for the tax account of Optionor and such income and expenses for the period then in effect on and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes after the Closing Date shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which account of Optionee. Security deposits, other refundable deposits, and similar prepaid rents shall be credited to Optionee and charged to Optionor at the Closing occursClosing. Optionor shall pay all taxes, with due allowance to be made assessments, invoices for the maximum available discount goods furnished or services supplied, and other exemptions expenses relating to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and that are allocable either to the period before the Closing or Date. Optionor shall immediately pay to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive Optionee all rents and other income accrued, and shall pay all other expenses accrued received by Optionor either before or incurred, in connection with the ownership or operation of Property before after the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with Date that are allocable to the ownership or operation of Property period on or after the Closing Date, all of which rents, other income and expenses . Optionor shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after solely responsible for collecting rents or charges that became due from tenants before the Closing Date. If any such rents or charges are received by Optionee, then Optionee shall pay such rents or charges to Optionor but all money received by Optionee shall be applied first to any amounts rent that accrues or becomes due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementDate.
Appears in 2 contracts
Samples: Option Agreement (Archon Corp), Option Agreement (Archon Corp)
Prorations. The following (a) Non-delinquent real property taxes and any current installments on any improvement assessment liens, Xxxxx-Xxxx bond payments and similar assessments affecting the Real Property and any personal property taxes affecting the Personal Property shall be prorated between based on the most recent available tax bills using a 30-day month and a 360-day year. Any increase in real property taxes and assessments arising out of the sale of the Real Property to Buyer (or its assignee), or a sale or change in ownership after the sale to Buyer, and any supplemental real property taxes and assessments arising out of any construction pertaining to the Real Property completed following the Close of Escrow shall be paid by Buyer when assessed, and Buyer shall indemnify Seller from and against all such taxes. Any supplemental real property taxes or private assessments arising out of any occurrence before the Close of Escrow shall be paid by Seller when assessed to the extent such taxes or assessments are attributable to any period before the Close of Escrow, and Seller shall indemnify Buyer from and against all such taxes and assessments. The parties’ indemnification obligations under this Section shall survive the Close of Escrow.
(b) Non-delinquent rentals and other charges payable by tenants shall be prorated based on the updated Rent Roll delivered pursuant to Section 5(c)(v). Rentals are delinquent when payment thereof is more than thirty (30) days past due as of the Close of Escrow. In addition, rentals from a tenant less than thirty (30) days past due will be considered delinquent if that tenant also has at least one month of rental more than thirty days past due (e.g. if a tenant has not paid its monthly rental for January of a year, and assuming a date after February 1 for the Close of Escrow, due to the January delinquency the rental for the month of February also will be considered delinquent even though it is less than thirty ((30) days past due). Escrow Holder shall credit the amount of security deposits held by Seller as shown on the Rent Roll against the Purchase Price payable by Buyer. Rentals collected by Seller not shown on the updated Rent Roll and delinquent rentals collected by Buyer as hereafter provided shall be prorated by the parties outside of escrow as of the Closing Date and paid to the entitled party as soon as practical from time to time as collected. After the Close of Escrow Buyer shall use its commercially reasonable efforts to collect any delinquent rentals, but Buyer shall not be required to file suit or evict a tenant. If, after making diligent efforts to collect delinquent rentals from any tenant or tenants, or ninety (90) days after the Close of Escrow, whichever first occurs, Buyer elects not to file a legal action against such tenant or tenants, Buyer shall notify Seller, and Seller may file a legal action or actions against such tenant or tenants for the delinquent rentals owing to Seller except that Seller shall not pursue an eviction remedy. Delinquent rentals collected by Buyer, net of the reasonable costs of collection (including attorney’s fees), shall be applied first against rent accruing for the month in which the Closing occurs, then against any other amounts owing Buyer, then against other amounts most overdue. Percentage rent, if applicable and if any, for the rental period including Closing shall be prorated upon receipt, based upon the tenant’s sales for the portion of the lease year allocable to Seller’s and Buyer’s respective ownership of the Property.
(c) No later than two (2) business days before the Close of Escrow, the parties will prorate outside of escrow on an accrual basis all known deposits and operating expenses concerning the Property, refundable deposits held by any governmental agency or utility that will be assigned to Buyer at the Close of Escrow. If any of the foregoing cannot be apportioned at the Closing Date because of the unavailability of the amounts which are to be apportioned, such items shall be apportioned and paid to the entitled party as soon as practicable after the Closing Date, but in no event later than ninety (90) days after the Closing Date. Sewer, gas, electric, telephone and other utility charges, to the extent not reimbursed or paid directly by tenants, shall not be prorated but shall be paid by Seller to the utility company.
(d) Buyer and Seller shall take all steps necessary to effectuate the transfer of all utilities presently in Seller’s name into Buyer’s name as of 11:59 p.m. local time the Close of Escrow. Where necessary, Buyer will post deposits with the utility companies.
(e) All prorations and adjustments shall be made as of 12:00 midnight on the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Samples: Purchase and Sale Agreement, Purchase and Sale Agreement (RREEF Property Trust, Inc.)
Prorations. The following (a) Buyer and Seller agree that all of the items normally prorated, including those listed below (but not including Income Taxes), relating to the business and operation of the Purchased Assets shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions Seller liable to the extent permissible for said year, and such items relate to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either time period prior to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive liable to the extent such items relate to periods commencing with the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days):
(i) Personal property, real estate and occupancy Taxes, assessments and other charges, if any, on or with respect to the business and operation of the Purchased Assets;
(ii) Rent, Taxes and all other items (including prepaid services or goods not included in Inventory) payable by or to Seller under any of Seller's Agreements assigned to Buyer pursuant to Section 2.1(d) hereof; 176
(iii) Any permit, license, registration, compliance assurance fees or other fees with respect to any Transferable Permit;
(iv) Sewer rents and charges for water, telephone, electricity and other income accruing, utilities;
(v) Rent and shall pay all Taxes and other expenses accrued or incurred, in items payable by Seller under the Real Property Agreements assigned to Buyer; and
(vi) Dues and fees payable to industry organizations under Seller's Agreements assumed by Buyer pursuant to Section 2.1(d) hereof.
(b) In connection with the ownership prorations referred to in (a) above, in the event that actual figures are not available at the Closing Date, the proration shall be based upon the actual Taxes or operation other amounts accrued through the Closing Date or paid for the most recent year (or other appropriate period) for which actual Taxes or other amounts paid are available. Such prorated Taxes or other amounts shall be re-prorated and paid to the appropriate Party within sixty (60) days of Property the date that the previously unavailable actual figures become available. The prorations shall be based on the number of days in a year or other appropriate period (i) before the Closing Date and (ii) including and after the Closing Date, all of which rents, . Seller and Buyer agree to furnish each other income and expenses shall be prorated as of the Closing. Rents with such documents and other income, if any, collected by Buyer after the Closing shall records as may be applied first reasonably requested in order to any amounts due to Buyer confirm all adjustment and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be proration calculations made after the Closing pursuant to this AgreementSection 3.5.
Appears in 2 contracts
Samples: Asset Purchase Agreement (Illinova Corp), Asset Purchase Agreement (Illinois Power Co)
Prorations. The following shall (a) Ad valorem taxes and assessments (whether for real estate or personal property) against the Property will be prorated between Buyer and Seller at Closing as of 11:59 p.m. local time the Closing Date based on the tax bills for the year of the day immediately preceding Closing. Buyer will receive at Closing a credit against the Purchase Price in an amount equal to the portion of the taxes and assessments on the Property from the beginning of the current tax year to the Closing Date. If Closing occurs before that year's tax bills are available, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall proration will be based on the most recent official latest tax bills or notice of valuation available rate applied to the latest unappealed tax value. If an estimated proration is made, then after the taxes and assessments for the fiscal year in which the Closing occursoccurs are finally assessed, with due allowance within 30 days after demand, Buyer shall refund to be made for Seller any amount overpaid by Seller or Seller shall pay to Buyer the maximum available discount or other exemptions amount of any deficiency in the proration. Buyer shall cause the Partnership to the extent permissible for said year, pay all taxes and to the extent the tax bills do not accurately reflect the actual Taxes assessed assessments against the Property before they become delinquent.
(or any b) Buyer acknowledges that all cash assets of the Partnership will be distributed to Seller prior to the Closing. All income and expenses of the Real Property and Improvements (other than ad valorem taxes and assessments) will be prorated at Closing as of the Closing Date on an accrual basis. All rents actually prepaid for a portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property term on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer offset against the cash portion of Purchase Price. All other income and expense items subject to proration pertaining to the Purchase Price period prior to the Closing Date will be allocated to and paid by Sellers and all income and expense items subject to proration pertaining to the period starting on the Closing Date will be allocated to and paid by Buyer. Seller is responsible for Lease commissions due Seller's employees and locator fees for Leases under which the tenant moves into a unit prior to the Closing Date. Buyer is responsible for locator fees for Leases under which the tenant moves into a unit on or after the Closing Date. All application fees which are not prepaid security deposits shall be retained by Seller. Any income payable in connection with any Service Contract will be prorated, but no lump sum or up front payments paid to Seller with respect to any Service Contract will be prorated. Rent will be prorated based on the Rent Roll provided by the Partnership at the Closing. Escrow Holder No later than 3 business days prior to the Closing Date, Buyer and each Seller shall not be concerned with mutually approve and provide to Closing Agent a schedule of prorations in as complete and accurate a form as possible. No later than 60 days after Closing, each Seller and Buyer shall make appropriate post-closing adjustments to the prorations of income and expenses but in no event will any prorations that are to readjustment be made after the 60th day after the Closing pursuant Date, other than a readjustment of ad valorem taxes and assessments.
(c) All Deposits paid as refundable security for rent, cleaning, pet deposits, or any other purposes will be paid to Buyer at Closing and the obligation, if any, to refund the cash deposits to tenants is assumed by Buyer. Except as provided in SECTION 6.3(d), no non-refundable deposits or fees paid by tenants shall be paid or payable to Buyer.
(d) Any amounts of so-called "hassle free move-out" payments paid to the Partnership for current leases on the Properties shall be equally split between Seller and Buyer and, at Closing, Seller shall pay to Buyer its share thereof.
(e) All deposits and escrows made by Seller with the respective Lenders will be delivered to the Seller at Closing and will be retained by the Seller or will be credited to the Seller at Closing.
(f) The obligations of Sellers and Buyer under this AgreementSECTION 6.3 survive the Closing.
Appears in 2 contracts
Samples: Contract of Sale (Education Realty Trust, Inc.), Contract of Sale (Education Realty Trust, Inc.)
Prorations. The following shall be prorated between Buyer (a) Seller and Seller Purchaser agree to adjust, as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the "PRORATION TIME"), the following (collectively, the "PRORATION ITEMS"):
(i) Rentals, in accordance with Section 10.4(b) below.
(ii) Cash Security Deposits (to the extent such Security Deposits have not yet been applied toward the obligations of any Tenant under the Leases) and any prepaid rents, together with interest required to be paid to Tenants thereon.
(iii) Utility charges payable by Seller, including, without limitation, electricity, water charges and sewer charges. If there are meters on the Real Property, Seller will cause readings of all said meters to be performed not more than three (3) Business Days prior to the Closing Date, on and a per diem adjustment shall be made for the basis of days between the actual number of days elapsed during the month in which meter reading date and the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be Date based on the most recent official tax bills or notice of valuation available meter reading.
(iv) Amounts payable under the Construction Contracts.
(v) Amounts payable under the Spectrasite Agreements (unless Purchaser complies with the requirements in Section 3.2).
(vi) Ad valorem taxes due and payable for the fiscal year in which calendar year. If the Closing occursDate shall occur before the tax rate is fixed, with due allowance the apportionment of ad valorem taxes shall be upon the basis of the tax rate for the preceding year applied to the latest assessed valuation. If, subsequent to the Closing Date, ad valorem taxes (by reason of change in either assessment or rate or for any other reason) for the Real Property and Improvements should be determined to be made higher or lower than those that are apportioned, a new computation shall be made, and Seller agrees to pay Purchaser any increase shown by such recomputation and vice versa. Any and all expenses incurred or to be incurred in connection with any real estate tax appeals that are pending at the time of Closing shall be prorated in the same manner as ad valorem taxes set forth above. Seller will be charged and credited for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion amounts of all of the Property) and allocable either Proration Items relating to the period before up to and including the Closing or Proration Time, and Purchaser will be charged and credited for all of the Proration Items relating to the period after the ClosingProration Time. The estimated Closing prorations shall be set forth on a preliminary closing statement to be prepared by Seller and submitted to Purchaser prior to the Closing Date (the "CLOSING STATEMENT"). The Closing Statement, then Buyer and Seller once agreed upon, shall adjust the actual Taxes between Buyer be signed by Purchaser and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income The proration shall be paid at Closing by Purchaser to Seller within ten (10if the prorations result in a net credit to Seller) days after end of or by Seller to Purchaser (if the month prorations result in which such amounts were collected. Buyer shall incur no obligation a net credit to Seller for Buyer's failure Purchaser) by increasing or reducing the cash to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion Purchaser in payment of the Purchase Price at the Closing. Escrow Holder shall If the actual amounts of the Proration Items are not known as of the Closing Date, the prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations will be made on the basis of the actual figures, and a final cash settlement will be made between Seller and Purchaser. No prorations will be made in relation to insurance premiums, and Seller's insurance policies will not be concerned assigned to Purchaser. Final readings and final xxxxxxxx for utilities will be made if possible as of the Closing Date, in which event no proration will be made at the Closing with respect to utility bills. Seller will be entitled to all deposits presently in effect with the utility providers, and Purchaser will be obligated to make its own arrangements for any prorations that are deposits with the utility providers. The provisions of this Section 10.4(a) will survive the Closing for twelve (12) months.
(b) Purchaser will receive a credit on the Closing Statement for all unpaid amounts under the Construction Contracts assumed by Purchaser hereunder to the extent such amounts relate to incomplete tenant improvements contemplated by the relevant Lease. Purchaser will also receive a credit on the Closing Statement for the prorated amount (as of the Proration Time) of all Rental previously paid to or collected by Seller and attributable to any period following the Proration Time. After the Closing, Seller will cause to be made paid or turned over to Purchaser all Rental, if any, received by Seller after Closing and attributable to any period following the Proration Time. "RENTAL" as used herein includes fixed monthly rentals, additional rentals, percentage rentals, escalation rentals (which include each Tenant's proportionate share of building operation and maintenance costs and expenses as provided for under its Lease, to the extent the same exceeds any expense stop specified in such Lease), retroactive rentals, all administrative charges, utility charges, tenant or real property association dues, storage rentals, special event proceeds, temporary rents, telephone receipts, locker rentals, vending machine receipts and other sums and charges payable by Tenants under the Leases or from other occupants or users of the Property. Rental is "DELINQUENT" when it was due prior to the Closing pursuant Date, and payment thereof has not been made on or before the Proration Time. Delinquent Rental will not be prorated. With respect to this AgreementTenants still in occupancy, Purchaser agrees to use commercially reasonable efforts with respect to the collection of any Delinquent Rental, but Purchaser will have no liability for the failure to collect any such amounts and will not be required to pursue legal action to enforce collection of any such amounts owed to Seller by any Tenant. With respect to Tenants no longer in occupancy, Seller reserves the right to pursue the collection of Delinquent Rental. All sums collected by Purchaser from and after Closing from each Tenant (excluding tenant specific xxxxxxxx for tenant work orders and other specific services as described in and governed by Section 10.4(d) below) will be applied first to current Rental (which may include delinquencies owed to Seller for the calendar month of Closing) and then to delinquencies owed by such Tenant to Seller. Any sums due Seller will be promptly remitted to Seller.
Appears in 2 contracts
Samples: Sale Agreement (Mack Cali Realty L P), Agreement of Sale and Purchase (Mack Cali Realty L P)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time Notwithstanding anything to the contrary in any of the day immediately preceding the Closing Date, on the basis CAPCO Agreements:
(a) The Parties agree that all of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectivelyitems normally prorated, "Taxes") for the tax period then in effect and insurance premiums including those listed below (but only if Buyer is assuming Seller's insurance policy or policiesnot including Income Taxes). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions relating to the extent permissible for said year, business and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion operation of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses Exchange Assets shall be prorated as of the Closing. Rents Exchange Closing Date, with each Conveying Party remaining liable for such items to the extent such items relate to any time period prior to the Exchange Closing Date, and the Party that is acquiring such Conveying Party's Exchange Assets under this Agreement to be liable for such items to the extent such items relate to periods commencing with the Exchange Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days):
(i) personal property, real estate and occupancy Taxes, assessments and other incomecharges, if any, collected on or with respect to the business and operation of the Exchange Assets;
(ii) rent, Taxes and all other items (including prepaid services or goods not included in Inventories) payable by Buyer or to a Conveying Party under any of the Assigned Agreements conveyed by that Party;
(iii) any permit, license, registration, compliance assurance fees or other fees with respect to any Transferable Permit;
(iv) sewer rents and charges for water, telephone, electricity and other utilities with respect to the Exchange Assets;
(v) rent and Taxes payable by a Conveying Party under the Real Property Leases assigned to the Party that is acquiring such Real Property Leases under this Agreement; and
(vi) insurance premiums paid on or with respect to the business and operation of the Exchange Assets.
(b) In connection with the prorations referred to in Section 5.4 (a) above, in the event that actual figures are not available at the Exchange Closing Date, the proration shall be based upon the actual Taxes or other amounts accrued through the Exchange Closing Date or paid for the most recent year (or other appropriate period) for which actual Taxes or other amounts paid are available. Such prorated Taxes or other amounts shall be re-prorated and paid to the appropriate Party within sixty (60) days of the date that the previously unavailable actual figures become available. The prorations shall be based on the number of days in a year or other appropriate period (i) before the Exchange Closing Date and (ii) including and after the Exchange Closing shall Date. The Parties agree to furnish each other with such documents and other records as may be applied first reasonably requested in order to any amounts due to Buyer confirm all adjustment and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be proration calculations made after the Closing pursuant to this AgreementSection 5.4.
Appears in 2 contracts
Samples: Generation Exchange Agreement (Dqe Inc), Generation Exchange Agreement (Duquesne Light Co)
Prorations. The following parties intend that Seller shall be prorated between Buyer and Seller as operate for its own account the business conducted at the Branch Offices until the close of 11:59 p.m. local time of the day immediately preceding business on the Closing Date, and that the Buyer shall operate such business for its own account on and after the close of business on the Closing Date. Thus, except as otherwise specifically provided in this Agreement, items of expense directly attributable to the operation of the Branch Offices (which shall not include any general overhead expenses of Seller) shall be prorated as of the close of business on the Closing Date, whether or not such adjustment would normally be made as of such time, which may include, without limitation, property and casualty insurance (if such prorations are not made by the applicable insurer(s)), telephone, electric, gas, water, and other utility services, security services, taxes associated with the Real Property, assessments (including regulatory assessments) and similar expenses and revenue related to the operation of the Branch Offices and the Assets transferred hereunder. For purposes of calculating the prorations, the parties acknowledge that Illinois real estate taxes are typically paid in arrears; provided, however, that all Real Property taxes and assessments, to the extent payable by Seller and/or Buyer, shall be prorated at the Closing on the basis of 105% of the most recent ascertainable Real Estate taxes and assessments, and all other payments shall be prorated on the basis of the actual number of days elapsed during best information available at Closing. If, at Closing, the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer Owned Real Property is assuming Seller's insurance policy encumbered by an assessment that is a charge or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed lien against the Owned Real Property (arising on or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and such assessment is payable in installments, then all unpaid installments of such assessments which are due and payable after the Closing shall be paid and discharged by Buyer at or after Closing. Seller shall receive be responsible for payment at Closing of all rents accrued but unpaid installments of such assessments which are due and other income accruingpayable for the period prior to the Closing Date. The proration of FICO assessments and FDIC insurance premiums will be based on the amount of the Deposit Liabilities as of the Closing Date and the number of days during any period Buyer will hold the Deposit Liabilities. The parties will affect the proration of FDIC insurance premiums through the FDIC Connect system, as may be required, and will share with each other evidence of such proration. For prorations, if any, that cannot be reasonably calculated as of the Closing, a post-closing adjustment shall pay all other expenses accrued be made in the manner specified in Section 2.3(c). Notwithstanding anything to the contrary, to the extent that the FDIC imposes an assessment (special or incurred, in connection with the ownership or operation of Property on or otherwise) after the Closing Date, all of which rentsassessment is applicable to deposits that were attributable to the Deposits prior to the Closing Date, other income and expenses then such assessment shall be prorated as of the Closing. Rents appropriately apportioned between Seller and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent Date within five Business Days after payment of such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementassessment.
Appears in 1 contract
Samples: Branch Purchase and Assumption Agreement (First Mid Illinois Bancshares Inc)
Prorations. The following shall be prorated between Buyer Seller and Seller Purchaser as of 11:59 p.m. local the Closing Date:
(i) all real estate taxes and general or special assessments on the Real Property based on the most recently ascertainable taxes. Seller shall be responsible for all such taxes that are allocable to any period prior to the Closing Date and Purchaser shall be responsible for all such taxes allocable to any period from and after the Closing Date. If any taxes or assessments relating to the period prior to the Closing are paid in installments, then Seller shall pay on or before the Closing Date any remaining installments with respect to such taxes or assessments. If, at the time of Closing, the tax rate has not yet been fixed, the taxes shall be prorated based upon the tax rate established for the previous tax year applied to the latest assessed value; provided, however, that Seller and Purchaser agree that to the extent the actual taxes for the current year differ from the amount so apportioned at Closing, the parties hereto will make all necessary adjustments by appropriate payments between themselves following the Closing.
(ii) to the extent Property Contracts are not terminated pursuant to Section 5.3, Seller shall be credited for prepaid sums under such Property Contracts and Purchaser shall be credited for any amounts due or accrued thereunder as of Closing; and
(iii) to the extent that utility meters are not read and final bills rendered as of the day immediately preceding the Closing DateDate as set forth below, water, sewer, electricity and other public utility charges with respect to the Property shall be prorated effective as of the day immediately preceding the Closing Date utilizing an estimate of such charges reasonably approved by both Purchaser and Seller based on prior utility bills. Seller shall request and use reasonable efforts to obtain a final reading of all water, sewer, electricity, gas and other public utility meters as of the day immediately preceding the Closing Date and shall promptly pay any bills rendered pursuant to such meter readings. All prorations and closing payments shall be made on the basis of a closing statement reasonably approved by Purchaser and Seller. Except as otherwise stated, in the event any of the prorations or apportionments made under this Section 8.4 shall prove to be incorrect for any reason, then any party shall be entitled to a prompt adjustment to correct the same. Any item which cannot be finally prorated because of the unavailability of information shall be tentatively prorated on the basis of the actual number best data then available and re-prorated when the information is available. The provisions of days elapsed during the month in which this Section 8.4 shall survive the Closing occurs: general for a period of twelve (12) months. Purchaser and special county Seller acknowledge that, except as otherwise expressly provided herein, the purpose and city real property taxes intent of the provisions set forth in this Section 8.4 and special assessments (collectively, "Taxes") for elsewhere in this Agreement as to prorations and apportionments is that Seller shall bear all expenses of the tax period then in effect ownership and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration operation of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with therefrom accruing through midnight at the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month day preceding the Closing and Purchaser shall bear all such expenses and receive all income accruing thereafter. Any revenues and/or expenses affecting the Property that are not otherwise specifically addressed in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases Section 8.4(a) shall be delivered by certified funds to Buyer at apportioned consistently with the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementforegoing provisions.
Appears in 1 contract
Samples: Real Estate Purchase Agreement (Praecis Pharmaceuticals Inc)
Prorations. The following prorations relating to the Assets will be made as of the Closing Date, with the U.S. Sellers liable to the extent such items relate to any time period up to the day immediately preceding the Closing Date and Buyer liable to the extent that such items relate to periods on or after the Closing Date. The net amount of all such prorations will be settled and paid by the U.S. Sellers to Buyer or Buyer to the U.S. Sellers, as the case may be, on the Closing Date by wire transfer of immediately available funds to an account designated in writing by Buyer or the U.S. Sellers, as applicable, provided, however, that if any item cannot be prorated with specificity as of the Closing Date (including real estate taxes and assessments resulting from, among other things, any proposed or actual change in valuation prior to the Closing Date to the extent such changes affect Taxes in the period up to and including the Closing Date) due to final bills not being issued as of the Closing Date, the parties will calculate the prorations with respect to such items as soon as practicable after the actual bills are issued, and the net amount shall be prorated between paid by the responsible party to the other(s) by wire transfer of immediately available funds promptly thereafter:
(a) rents, additional rents, taxes and other items payable by the U.S. Sellers under any lease to be assigned to or assumed by Buyer pursuant to the terms of this Agreement;
(b) the amount of rents and Seller charges for sewer, water, fuel, telephone, electricity and other utilities, including Taxes thereon; provided, however, that no deposits or prepaid amounts will be prorated, but will be included in the Assets; and
(c) real estate and personal property Taxes and installments of assessments, if any, on or with respect to the Assets. Notwithstanding the foregoing, Buyer shall be liable for and pay such items set forth in clauses (a), (b) and (c) above to the extent such items are included as liabilities on the Final Closing Statement.
(d) The U.S. Sellers will use commercially reasonable efforts to cause all utility bills of 11:59 p.m. local time the U.S. Sellers to be closed and billed by their respective utility companies as of the day immediately preceding the Closing Date, on Date in order that utility charges may be separately billed for the basis of the actual number of days elapsed during the month in which period prior to the Closing occurs: general Date and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer on and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date. If any such utility charges are not separately billed, all of which rents, other income and expenses shall they will be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent presuming that such rents or other income relate to charges were uniformly incurred during the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementquestion.
Appears in 1 contract
Samples: Purchase Agreement (Smucker J M Co)
Prorations. The following All rents payable by Seller under the Golf Course Lease, taxes, assessments, utilities, maintenance charges and similar expenses of the Property, to be determined using the accrual method of accounting, shall be prorated between Seller and Buyer and Seller as of 11:59 p.m. local time the Effective Date and, to the extent of information then available, such prorations shall be made at the day immediately preceding Closing. Seller and Buyer shall use their best efforts prior to the Closing Date to prepare a schedule of prorations covering as many items to be prorated as practicable so such prorations can be made at the Closing. Such prorations shall be adjusted, if necessary, and completed after the Closing as soon as final information becomes available. Seller and Buyer agree to cooperate and to use their best efforts to complete such prorations no later than thirty (30) days after the Closing Date, except for any annual reconciliation of expense reimbursements payable by the tenant under the Golf Course Lease, which cannot be completed until the final accounting for the year has been prepared. Monthly income and expense items shall be prorated on the basis of a thirty (30) day month. Such income and expenses of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") Property for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes before the Effective Date shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made account of Seller and such income and expenses for the maximum available discount period on and after the Effective Date shall be for the account of Buyer. Seller shall pay all taxes, assessments, invoices for goods furnished or services supplied, and other exemptions expenses relating to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and that are allocable either to the period before the Closing or Effective Date. The net adjustment of all prorations pursuant to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income this PARAGRAPH 11.4 shall be paid by the party owing the same to Seller within ten (10) days after end of the month other in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals cash or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price or official bank check or wire transfer at the Closing. Escrow Holder The expenses and liabilities for which Seller shall not be concerned with any prorations that are to be made after the Closing liable pursuant to this AgreementPARAGRAPH 11.4 shall be a retained liability of Seller and the expenses and liabilities of the Buyer shall be an assumed liability of the Buyer.
Appears in 1 contract
Prorations. The following shall be prorated between Buyer Real estate taxes, personal property taxes, assessments and Seller as all items of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general income and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against expense regarding the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the date of Closing; provided, however, that assessment lien(s) which had been certified as of the date of Closing, and pending liens where the improvements have been substantially completed, shall be satisfied by Seller, in full, at Closing. Rents In the event that the tax xxxx for the year of Closing is not available, Seller shall comply with Section 196.295, Florida Statutes. Under this Section, in the event fee title to the Property is acquired between January 1, and other incomeNovember 1 of any year by Purchaser, if any, collected by Buyer after the Closing Seller shall be applied first required to any amounts due to Buyer and then, place in escrow with the county tax collector an amount equal to the extent such rents or other income relate current taxes prorated to the period ending date of transfer of title, based upon the current assessment and millage rates on or before the land involved. This fund shall be used to pay any ad valorem taxes due, and the remainder of taxes which would otherwise have been due for that current year shall stand cancelled. In the event fee title to the Property is acquired between November 2 and December 31, Seller, at least five (5) business days prior to Closing, such rents or other income shall be paid to Seller within ten notify the Property Appraiser’s Office (10“Appraiser’s Office”) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security impending closing date and provide the Appraisers Office with the legal description, address, folio number and any other refundable deposits paid by tenants relevant property information in order to Seller pursuant to tenant leases obtain from the Appraiser’s Office a final tax payoff, which will be collected at closing. There shall be delivered by certified funds no proration of taxes and the Purchaser shall be exempt from the payment of taxes effective on the day of closing. In the event any other expenses pertaining to Buyer the Property are not known at Closing, then such expenses shall be prorated based on an estimate and the Closing or, at Seller's option, credited to Buyer against the cash portion parties will reprorate same upon receipt of the Purchase Price actual xxxx for such expenses. In the event there is any recoupment or other consideration payable to applicable governmental authorities as the result of any change of the use by Seller of the Property prior to closing, then Seller shall satisfy such obligation at the Closing. Escrow Holder The provisions of this Paragraph 8 shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementsurvive Closing.
Appears in 1 contract
Samples: Purchase and Sale Agreement
Prorations. The following prorations shall be prorated made between Buyer and Seller as of 11:59 p.m. local time the date of Closing:
a. Seller shall receive a credit for any ad valorem taxes, assessments, maintenance costs or other costs and expenses advanced by Seller (collectively the day immediately preceding "Advances") which (i) are attributable to the Closing Date and the period subsequent thereto, (ii) are reimbursable to Landlord by Tenant pursuant to the Lease, but (iii) have not been received by Seller as of the Closing Date. Seller agrees to remit to Buyer, on within thirty (30) days of receipt of same, all reimbursements received from Tenant after the basis Closing Date for all such Advances that are credited to Seller at Closing.
b. All rent and additional rent under the Lease of the actual number Property (together the "Rent") attributable to the period prior to the Closing Date shall be the property of days elapsed during Seller, and all Rent attributable to the Closing Date and the period subsequent thereto shall be the property of Buyer. If Rent for the month in which the Closing occurs: general Date occurs has been paid by Tenant to Seller prior to the Closing Date, then such rent shall be the property of Seller and special county Buyer shall receive a credit for all such Rent attributable to the Closing Date and city real property taxes and special assessments (collectively, "Taxes") the period subsequent thereto. If Rent for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year month in which the Closing occurs, with due allowance Date occurs has not been paid by Tenant to be made for the maximum available discount or other exemptions Seller prior to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the ClosingDate, then such rent shall be the property of Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition receive a credit for all such Rent attributable to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before period prior to the Closing Date, . Any Rent prepaid or due and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with owing under the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses Prime Lease shall be prorated as of the Closing. Rents Buyer and other incomeSeller each agree to remit to the other, if anywithin thirty (30) days after receipt of same, collected all Rent received by Buyer them after the Closing shall be applied first to any amounts due to Buyer and then, Date which is defined as the property of the other party pursuant to the extent such rents or other income relate terms of this subparagraph, which obligation shall expressly survive Closing hereunder.
c. Ad valorem taxes and assessments for the year of closing hereunder which are not payable by Tenant under the Lease (together the "Taxes") and which are attributable to the period ending on or before prior to the Closing, such rents or other income Closing Date shall be paid the responsibility of Seller, and such Taxes which are attributable to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security Closing Date and any other refundable deposits paid by tenants to Seller pursuant to tenant leases the period subsequent thereto shall be delivered by certified funds to Buyer at the Closing orresponsibility of Buyer, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder and shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementprorated accordingly.
Appears in 1 contract
Samples: Real Estate Purchase Contract (Aei Income & Growth Fund 25 LLC)
Prorations. The following (a) Rents, including, without limitation, base rents, minimum guaranteed rents, percentage rents, if any, and any additional charges and expenses payable by tenants under Leases, all as and when actually collected; real property taxes and assessments; water, sewer and utility charges (if not separately metered and paid by tenants); amounts payable under any Service Contracts that survive Closing or other agreements or documents that survive Closing; annual permits and/or inspection fees (calculated on the basis of the period covered); and any other expenses of the operation and maintenance of the Property, shall all be prorated between Buyer and Seller as of 11:59 p.m. local time on the day immediately prior to Closing (i.e., Buyer is entitled to the income and responsible for the expenses of the day immediately preceding the Closing Dateof Closing), on the basis of a 365-day year. Buyer shall reimburse Seller for the actual number tenant improvement costs, leasing commissions, legal fees and other expenses, and free rent and other concessions, as and to the extent provided in Section 7.2. Delinquent rents or other delinquent sums that are due pursuant to the terms of days elapsed during the Leases shall not be prorated. Any prepaid rents attributable to periods from and after the Closing Date shall be transferred to Buyer either directly or by way of a credit against the Purchase Price in favor of Buyer. All rents collected after the Closing shall be applied and paid as provided in this Section 8.5(a). If a tenant shall specifically designate a payment as being attributable to, or if it is readily ascertainable that a payment received from a tenant is attributable to, a specific period of time or for a specific purpose, including, without limitation, for operating expenses or real estate tax payments which were not paid or were underpaid by such tenant or for reimbursement for work performed by Seller on the tenant's premises, such payment shall be so applied. If there is no such designation or if not so readily ascertainable, any payment received from a tenant after Closing shall be deemed a payment of rent and other sums due after the Closing until the tenant is current on rents and sums due under the applicable Lease on or after the Closing, and then such payments shall be applied to rents and other sums owing for the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income payments shall be paid to Seller within ten (10) days after end to the extent of the month in which such amounts were collectedany rent or other sums owing to Seller for periods prior to Closing. Buyer shall incur no obligation use reasonable efforts to collect such rents and other sums owing to Seller for Buyer's failure a period of six (6) months after Closing. Seller retains the right to collect any such rentals rents and other sums from tenants after Closing; provided, however, that Seller shall have no right to terminate a Lease, cause any such tenant to be evicted or to exercise any other landlord remedy against such tenant. Without limiting the generality of the immediately preceding sentence, in no event shall Seller commence any legal proceedings against any tenant after the Closing with respect to any matter relating to a Lease. Reconciliations of taxes, insurance charges and other expenses owed by tenants under Leases for the calendar year (or fiscal year if different from the calendar year) in which the Closing occurs shall be prepared by Buyer with the cooperation of Seller within one hundred eighty (180) days following the end of such year in accordance with the requirements set forth in the Leases and as provided in this Section 8.5(a). For those Leases in which tenants pay a proportionate share of taxes, insurance charges or other income. All security and any other refundable deposits paid by expenses over a base year amount or expense stop, the proration between the parties of the income received from tenants to Seller pursuant to tenant leases over such base year amount or expense stop shall be delivered calculated based on the total amount of such expenses for the Property incurred by certified funds both Seller and Buyer for the entire calendar (or, if applicable, fiscal) year, rather than on the amount of such expenses actually incurred by each party for such year, in order to Buyer at enable the parties to determine if the base year amount or expense stop for such year is exceeded. Such income as so calculated shall be prorated between the parties based on the number of days each party owned the Property during such year and otherwise in accordance with this Section 8.5(a). By way of illustration but without limiting the foregoing, if: (i) the Closing oroccurred on June 1, at 2013, (ii) during Seller's option’s period of ownership of the Property during the year 2013 (151 days), Seller incurred expenses of $450,000, (iii) during Buyer’s period of ownership of the Property during the year 2013 (214 days), Buyer incurred expenses of $500,000, (iv) total expenses for such year recovered from tenants under Leases is $400,000 (e.g., $950,000 total expenses minus a total base year amount of $550,000), then Seller would be entitled to $165,479.45 of such income ($400,000/365 days = $1,095.89 per diem multiplied by 151 days) and Buyer would be entitled to $234,520.55 of such income ($1,095.89 per diem multiplied by 214 days), regardless of the actual amount of expenses actually incurred by each party (which would have instead resulted in Seller receiving $189,473.68 of such income and Buyer receiving $210,526.32 of such income). For Leases which do not have a base year amount or expense stop, the proration between the parties of income received from tenants from reconciliations of expenses under the Leases shall be calculated based on the expenses actually incurred by each party for such year and each party’s period of ownership of the Property, and otherwise in accordance with this Section 8.5(a). The amount of any cash security deposits received by Seller under Leases (and not otherwise forfeited by a tenant in accordance with the terms of a Lease) shall be credited to Buyer against the cash portion of the Purchase Price (and Seller shall be entitled to retain such cash security deposits). Seller shall receive credits at Closing for the amount of any utility or other deposits with respect to the Property to the extent Buyer receives the benefit of such deposits. Buyer shall cause all utilities to be transferred into Buyer's name and account at the time of Closing. Escrow Holder Seller shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.cause all
Appears in 1 contract
Samples: Agreement of Purchase and Sale (American Realty Capital - Retail Centers of America, Inc.)
Prorations. The following shall All normal and customarily proratable items of income and expense relating to the Property will be adjusted between Seller and Buyer for each Site, on a Site-by-Site basis, for each Closing as provided below. Closing Date prorations will be made as of 12:01 A.M. local time on the day of the subject Closing as if Buyer was the owner of the Site for the entire Closing Date. Agreement of Purchase and SaleCMFT Portfolio 52
(a) Collected base rents, additional rent and any separate amounts for Real Estate Taxes, common area maintenance charges, insurance, and other expenses related to the Site paid by the Tenants to Seller under the Leases (collectively, “Rents”) for the month of Closing will be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, Date on the basis of the actual number of days of the month (or other applicable time period) which shall have elapsed as of the Closing Date. Buyer shall receive all collected Rent attributable to dates from and after the Closing Date. Seller shall receive all collected Rent attributable to dates prior to the Closing Date.
(b) All Leasing Costs shall be prorated as provided for in Section 3.6.
(c) Real Estate Taxes for such Site that first become delinquent (and thus are customarily paid) in the Closing Year (the “Closing Year Taxes”) will be prorated by the Parties at Closing, with due adjustment being made for any portion of the Closing Year Taxes that is paid or payable to the taxing authority(ies) either (i) directly by one or more Tenants; (ii) by the Landlord but is collected from (or reimbursed by) one or more Tenants in lump sums that correlate directly to the payment amounts; (iii) by the Landlord but is collected from (or reimbursed by) one or more Tenants through monthly estimated tax impound payments collected by the Landlord; (iv) by the Landlord but is not separately reimbursed or impounded by one or more Tenants because the Leases for such Tenants are “gross leases;” or (v) by the Landlord but relates to leasable space at the Property that as of the Closing Date is not subject to a Lease. Notwithstanding the foregoing, if, on or after the Effective Date, a Site or any portion thereof shall be or shall have become affected by any special assessment for public improvements for work completed prior to the Effective Date, Seller shall pay at the Closing all unpaid installments currently due and payable
(d) Interest payable under any applicable Loan that is subject to a Loan Assumption Approval will be prorated as of the Closing Date, with Buyer being responsible for interest accruing on and after the Closing Date. Seller will receive a credit from Buyer at Closing for the amount of any impounds, escrows, reserves, or similar funds held by the applicable Lender in connection with such Loan which are not refunded or to be refunded to Seller in connection with Buyer’s assumption of such Loan (nor required for purposes of paying costs or expenses which Seller is responsible for under this Agreement), and Seller will assign to Buyer all of Seller’s right, title and interest in and to such transferred impounds, escrows, reserves, or similar funds.
(e) All other items of common area maintenance charges, insurance, or other expenses related to such Site for the Closing Year (“CAM Expenses”), including but not limited to any utility charges, maintenance charges, and charges under any Contracts, Related Agreements or Permitted Exceptions, will be prorated by the Parties at Closing, with due adjustment being made for any portion of the CAM Expenses that is paid or payable either (i) directly by one or more Tenants; (ii) by the Landlord but is collected from (or reimbursed by) one or more Tenants in lump sums that correlate directly to the payment amounts; (iii) by the Landlord but is collected from (or reimbursed by) one or more Tenants through monthly estimated impound payments collected by the Landlord; (iv) by the Landlord but is not separately reimbursed or impounded by one or more Tenants because the Leases for such Tenants are “gross leases;” or (v) by the Landlord but relates to leasable space at the Property that as of the Closing Date is not subject to a Lease. For any utilities that are in the name of Seller, Buyer and Seller will cooperate to arrange for final utility readings as close to the Closing Date as possible and the issuance of a final bxxx to Seller, with Buyer being designated the billing party in lieu of Seller from and after the Closing Date. Seller will be entitled to receive and retain any deposits of Seller held by utility companies with respect to the Property. Agreement of Purchase and SaleCMFT Portfolio 53
(f) Except to the extent considered Leasing Costs, in which case such costs shall be prorated between Seller and Buyer as set forth in Section 3.6, Seller will pay the costs of all capital improvement work related to a Site that are or become due and payable prior to the applicable Closing affecting such Site. Buyer will assume such capital improvement work obligations pursuant to Section 3.14 above, and Seller will have no further responsibility for such costs. The provisions of this Section will survive the Closing.
(g) Each of Seller and Buyer acknowledge and agree that none of the insurance policies, fidelity bonds and other insurance contracts maintained by Seller in respect of the Property (the “Seller Insurance Policies”) shall be assigned to Buyer, and Buyer shall be responsible for arranging for its own insurance for the Property as of the Closing Date. Accordingly, no proration or adjustment shall be made between Seller and Buyer with respect to the Seller Insurance Policies.
(h) To the extent not addressed by Section 5.4(e), charges under Contracts assigned at Closing, Related Agreements assigned at Closing, Permitted Exceptions, and all other costs and expenses incurred in connection with the ownership and operation of the Property that are customarily prorated shall be prorated as of the Closing Date, with Seller paying all such expenses accruing with respect to any time period prior to the Closing Date and Buyer paying all such operating expenses accruing with respect to any time period after the Closing Date.
(i) No later than one (1) Business Day prior to each Closing Date, the Parties shall jointly prepare a proration schedule setting forth the prorations to be made at such Closing pursuant to this Section 5.4, which proration schedule shall be reflected on the Closing Statement.
(j) If for any reason sufficient information is not available for a Site at Closing to allow Seller to provide the proration amounts contemplated in this Section 5.4, Seller or Buyer (as applicable) will provide appropriate reconciliations (and reasonable supporting information) to the other Party within one hundred eighty (180) days after the Closing of such Site; and unless the other Party reasonably objects thereto within (30) days of their receipt, thereupon Seller will pay to Buyer any amounts due Buyer, and Buyer will pay to Seller any amounts due Seller, as may be indicated by such supplemental reconciliations (net of any amounts that may have been estimated or determined by Seller and Buyer and paid or credited for such purposes at the applicable Closing between such Parties). Unless expressly otherwise agreed by the Parties, the reconciliation credits or payments made between Buyer and Seller as provided in this Section 5.4 will be final as between the Parties. Seller will be responsible for preparing and providing any final full-year reconciliations of Real Estate Taxes and CAM Expenses pertaining to calendar year 2021 and Buyer will be responsible for preparing and providing any final full-year reconciliations of Real Estate Taxes and CAM Expenses pertaining to calendar year 2022 that may be required to be provided to any Tenant pursuant to its Lease and for settling any adjustments required with each such Tenant as a result of such reconciliations (provided, that Buyer may utilize the reconciliations and supporting information received from Seller for such purpose), and thereupon Seller will pay to Buyer any amounts due Buyer, and Buyer will pay to Seller any amounts due Seller, as may be indicated by such supplemental reconciliations.
(k) If any Tenant pays percentage rent under its Lease, Buyer will remit to Seller, within thirty (30) days of receipt from such Tenant, Seller’s proportionate share of any percentage rental paid by such Tenant under its Lease with respect to the “lease year” or other applicable fiscal period under such Lease in which Closing occurs (such applicable fiscal period being the “Payment Period”), which proportionate share due to Seller will be determined based on the number of days (excluding the Closing Date) Seller owned the related Site during such Payment Period compared to the number of days (including the Closing Date) Buyer owned the related Site during such Payment Period. Agreement of Purchase and SaleCMFT Portfolio 54
(l) Seller will supply the relevant information to Buyer not later than five (5) Business Days prior to each Closing for, and the Parties will cooperate in the calculation, review and finalization of, the adjustments and prorations contemplated by this Section for such Closing. The Allocated Purchase Price amounts, prorations, closing costs, and any other credits and adjustments will be reflected on a closing settlement statement prepared by Escrow Agent and executed by Buyer and Seller for the applicable Closing on an aggregate basis and, if desired by either Party, with Site-specific information included therewith. If a net amount is owed by Seller to Buyer at a Closing for the adjustments and prorations contemplated by this Section for such Closing, such amount will be credited against the Purchase Price being paid at such Closing. If a net amount is owed by Buyer to Seller at a Closing for the adjustments and prorations contemplated by this Section for such Closing, such amount will be paid to Seller together with the Purchase Price at such Closing.
(m) No proration shall be made at the Closing with respect to any Rent which has not been collected as of the Closing Date. Unless a payment of Rents (other than base rent) is otherwise expressly captioned or directed by the paying Tenant, any Rents received by either Party from a Tenant following the Closing on such Tenant’s Site will be applied (i) first, between the Parties, to any Rents due from such Tenant for the month of such Closing, but only to the extent received during the month in which the Closing occurs: general , (ii) next, to Buyer, to any delinquent Rents and special county and city real property taxes and special assessments (collectively, "Taxes") for Rents then due or to become due within the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year month in which received from such Tenant for periods following the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said yearmonth of such Closing, and (iii) finally, to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or Seller, to any portion of the Property) and allocable either delinquent Rents due from such Tenant for periods prior to the period before the Closing or to the period after the such Closing, then in each case in inverse order of maturity. From and after each Closing, Buyer will use commercially reasonable and Seller shall adjust the actual Taxes between Buyer and good faith efforts on Seller, outside ’s behalf for a period of Escrow, as soon as reasonably possible not less than twelve (12) months following the Closing. In addition applicable Closing Date to the foregoing apportionmentscollect and remit to Seller any delinquent Rents owed to Seller from a Tenant, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued provided that Buyer will have no obligation to institute any litigation against or incurred, evict any Tenant in connection with such efforts. If after a Closing either Party receives any Rents or other amounts that properly belong to the ownership or operation of Property before other Party based upon the Closing Dateprorations or the provisions of this Section 5.4, such amounts will be promptly remitted by the receiving Party to such other Party (net of reasonable and actual costs of collection).
(n) If there are any items, matters, payments, or other obligations owed to Seller by a Tenant or third party that would not customarily be conveyed by a seller to a buyer in a sale transaction of this nature (“Excluded Seller Receivable Items”), such Excluded Seller Receivable Items will be retained by Seller and not conveyed (either in whole or in part) to Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection together with the ownership or operation of Property on or after the Closing Daterelated Site pursuant to this Agreement, provided, that all of which rents, other income and expenses shall be prorated Excluded Seller Receivable Items that are known to Seller as of the ClosingEffective Date are identified on Schedule D attached hereto. Rents and other incomeIn addition, if anythere is any capitalized expense incurred by Seller with respect to a Site that is being amortized and reimbursed by the Tenant over a number of years, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, then to the extent such rents or other income relate expense will not be fully reimbursed by such Tenant as of the Closing for such Site (such unreimbursed amount being an “Unreimbursed Capital Expense Amount”), a liquidated sum equal to the period ending on or before the seventy-five percent (75%) of such Unreimbursed Capital Expense Amount will be paid by Buyer to Seller at Closing, and Buyer will thereafter have the sole right to collect and receive all remaining reimbursement payments from the applicable Tenant. Any such rents or other income shall be paid to Unreimbursed Capital Expense Amounts that are known by Seller within ten (10) days after end as of the month in Effective Date will be set forth on Schedule E attached to this Agreement. The inadvertent exclusion of any matter that should properly have been listed on either Schedule D or Schedule E, particularly any such matter of which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing orParties do not have actual knowledge when this Agreement is executed, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations deemed dispositive that such matter was not intended to be treated as an Excluded Seller Receivable Item or an Unreimbursed Capital Expense Amount. Agreement of Purchase and SaleCMFT Portfolio 55
(o) The provisions of this Section 5.4 that by their terms are to be made occur after a Closing will survive the Closing pursuant to this AgreementClosing.
Appears in 1 contract
Samples: Purchase and Sale Agreement (American Finance Trust, Inc)
Prorations. The following Except as may be otherwise expressly provided herein, all revenues, income and expenses (including utility expenses and credit card adjustments) of the Properties with respect to the period prior to 12:01 a.m. on the Closing Date (but only including 50% of that night’s room revenues) shall be prorated between Buyer for the account of Seller; and Seller as 50% of 11:59 p.m. local time that night’s room revenues plus all revenues, income and expenses of the day immediately preceding Properties with respect to the period after 12:01 a.m. on the Closing Date (including all deposits or advances related to advance bookings or reservations exclusive of interest earned thereon through the Closing Date, ) for periods from and after the Closing Date) shall be for the account of Buyer. Seller shall deliver to Buyer the cash on hand at the Hotels on the basis Closing Date (except that cash which constitutes Seller’s 50% share of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city room revenues). Only real property taxes and special assessments (collectively, "Taxes") for and personal property taxes will be prorated inside of Escrow on the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes settlement statement; all other prorations shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, in accordance with local custom in San Diego County, California and Utah County, Utah, respectively, as reflected in a separately executed proration statement, shall be allocated, reconciled and paid by check or wire transfer directly between the parties as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property practicable on or after the Closing Date and may include, but not be limited to, income items such as revenues (prepaid or otherwise) from room, beverage, telephone and other similar charges, and expense (prepaid or otherwise) items such as utilities and amounts under Operating Agreements. If real property taxes and assessments to be assumed by Buyer are unavailable on the Closing Date, all a re-adjustment of which rents, other income such taxes and expenses assessments assumed by Buyer shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer made within thirty (30) days after the Closing shall or if longer, as soon as such taxes and assessments and charges or expenses assumed by Buyer are available. Should the sale occur after June 30th, and the Properties be applied first to any amounts re-assessed due to Buyer the sale contemplated herein for the tax year in which Closing occurs, a re-adjustment shall occur, and thenthe figures from the re-assessment shall form the basis for the pro-ration amount. Notwithstanding the immediately preceding sentence, if a re-assessment occurs for future tax periods (i.e., for any period from and after Closing), no re-adjustment shall occur. The parties agree to cooperate in good faith in effecting such a final reconciliation and each party shall promptly pay (or reimburse the other party for) any expense item that is chargeable to the extent such rents or other former party and shall promptly remit any income relate item to the period ending on or before other party if entitled thereto. In the event any adjustments pursuant to this Section 5.3 are, subsequent to Closing, found to be erroneous, then either party hereto is entitled to additional monies and shall invoice the other party for such rents or other income additional amounts as may be owing, and such amount shall be paid to Seller within ten (10) days after end promptly by the other party upon receipt of the month in which such amounts were collectedinvoice. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases Such invoice shall be delivered accompanied by certified funds to Buyer at reasonable substantiating evidence. The provisions of this Section 5.3 shall survive the Closing or, at Seller's option, credited to Buyer against the cash portion delivery of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementDeed.
Appears in 1 contract
Samples: Purchase and Sale Agreement (Apple REIT Seven, Inc.)
Prorations. The following All prorations and adjustments shall be prorated between Buyer and Seller made as of 11:59 p.m. local time of the day immediately preceding the Closing Date, Date based on the basis of the actual number of days elapsed during in the month in which of Closing and Buyer shall be deemed the owner of the Property on the Closing occurs: general Date for proration purposes. Except as otherwise provided below, any proration which must be estimated at Closing, and special county any erroneous prorations or omitted prorations, shall be reprorated and city finally adjusted as soon as practicable but in no event later than ninety (90) days after the Closing Date (or in the case of any real property taxes and special assessments or personal property taxes, no later than thirty (collectively, "Taxes"30) for days after the tax period then in effect and insurance premiums (but only if Buyer current xxxx therefor is assuming Seller's insurance policy or policiesrendered). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance any refunds payable to Seller or Buyer to be made as soon as practicable; otherwise, all prorations shall be final. The terms of this Section 2.9 shall expressly survive Closing.
2.9.1 Rents due or paid under the Leases shall be prorated to the Closing Date based upon rents actually collected for the maximum available discount month of Closing as reflected on the Updated Rent Roll or other exemptions any revision thereof. After the Closing, Seller may continue to pursue collection of any delinquent rents applicable to the extent permissible for said year, and period on or prior to the extent Closing Date if the tax bills do not accurately reflect collection activities related thereto were commenced prior to the actual Taxes assessed against Closing or the Property (tenant no longer resides at or occupies any portion of the Property) and , but not otherwise. Rents allocable either to the period before prior to the Closing or Date will be the property of Seller and rents allocable to the period from and after the ClosingClosing Date will be the property of Buyer. With respect to any delinquent rent, then Buyer shall include such rent in its regular billing and pay to Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible any rent actually collected within ninety (90) days following the ClosingClosing Date which is applicable to the period preceding the Closing Date; provided, however, it is understood and agreed that all rent collected by Buyer shall be applied (a) first to any rent then owed by the applicable tenant which accrued from and after the Closing Date, and (b) then to unpaid rent of such tenant which accrued prior to the Closing Date with offset for the reasonable allocation of any collection costs related thereto. In addition the event any rent is paid by tenants under the Leases directly to the foregoing apportionmentsSeller after Closing, Seller shall receive all rents pay Buyer any such rent which is applicable to the period from and other income accrued, and after the Closing Date. Buyer shall have no obligation to pay all other expenses accrued or incurred, in connection with Seller any rent collected by Buyer after the ownership or operation of Property before date which is ninety (90) F:\71018.005\Purchase Agreement\Purchase Agreement – Xxxxxx Village v8.doc days after the Closing Date, and Buyer shall receive all rents and other income accruingbe under no obligation to collect or pursue unpaid rent.
2.9.2 Seller’s insurance policies will not be assigned to Buyer. Accordingly, and Buyer shall pay all other expenses accrued or incurred, in connection with the ownership or operation secure its own casualty insurance effective as of Property on or after the Closing Date, and Seller shall be entitled to any unearned premium of any existing policy as of the Closing Date.
2.9.3 Water, electric, telephone and all other utility and fuel charges to the extent not billed directly to tenants of the Property shall be prorated ratably on the basis of the last ascertainable bills (and reprorated in accordance herewith upon receipt of the actual bills and invoices) unless final meter readings and final billing can be obtained. Seller shall also be entitled to pursue and retain any applicable refunds of security deposits paid by or on behalf of Seller to any utility companies. Buyer shall be solely responsible for making any deposits and arrangements required for utilities and other services to continue to serve the Property after the Closing.
2.9.4 Any assessments affecting the Property which rents, other income and expenses are not delinquent shall be prorated as of the ClosingClosing Date based upon the latest data available.
2.9.5 Real property and personal property taxes for the year of Closing shall be prorated on an accrual basis as of the Closing Date on the basis of actual bills therefor if available. Rents If such bills are not available, then such taxes and other incomecharges shall be prorated on the basis of the most currently available tax bills and, thereafter, promptly re-prorated upon the availability of actual bills for the applicable period. Any and all rebates or reductions in taxes received subsequent to Closing for the calendar year in which Closing occurs, net of costs of obtaining the same (including without limitation reasonable attorneys’ fees) and net of any amounts due to tenants, shall be prorated as of the Closing Date, when received. The current installment of all special assessments, if any, collected which are a lien against the Property at the time of Closing and which are being or may be paid in installments shall be prorated as of the Closing Date.
2.9.6 All costs and expenses of maintaining and operating the Property which have been incurred prior to the Closing Date shall be paid by Buyer Seller and all costs and expenses of maintaining and operating the Property on and after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income Date shall be paid to Seller within ten (10) days after end by Buyer. All prepaid costs and expenses of operating the Property which have accrued as of the month in Closing Date, but which such amounts were collected. are allocable to the operation of the Property from and after the Closing Date, shall be adjusted as a credit for the Seller as of the Closing Date.
2.9.7 Portions of advance rentals, if any, paid by any tenant under any of the Leases which are applicable to periods after the Closing Date shall be transferred to Buyer shall incur no obligation at the Closing.
2.9.8 An amount equal to Seller for Buyer's failure to collect such rentals or other income. All the remaining balance as of the Closing Date of all refundable security and any other refundable deposits paid by tenants to Seller of the Property (including pet deposits and similar fees) pursuant to tenant leases the Leases, including any interest owed thereon (if applicable), the responsibility for which will be assumed by Buyer at the Closing, shall be delivered by certified funds credited to Buyer at the Closing orClosing. F:\71018.005\Purchase Agreement\Purchase Agreement – Xxxxxx Village v8.doc
2.9.9 Fees and charges under the Assumed Service Contracts, at Seller's optionexcluding any prepaid door fees, credited to Buyer against the cash portion of the Purchase Price marketing fees or similar amounts, shall be prorated at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 1 contract
Samples: Purchase and Sale Agreement (KBS Legacy Partners Apartment REIT, Inc.)
Prorations. The following items shall be prorated by Escrow Holder as of the Close of Escrow with respect to each Property acquired by Buyer hereunder:
(a) Real property taxes with respect to the Land and Improvements and personal property taxes based upon the latest available tax information shall be prorated to the Close of Escrow, taking into account the obligation, if any, of tenants holding under the Leases to pay such taxes.
(b) Rents and other receivables under the Leases (collectively, "RENTS") shall be accounted for as follows:
(1) Rents due and payable in the month of the Close of Escrow shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during Rents collected by Seller for such month.
(2) Rents and other charges which at Closing are past due (the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "TaxesDELINQUENT RENTS") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice collected and applied as follows: For a period of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property thirty (or any portion of the Property30) and allocable either to the period before the Closing or to the period days after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closinguse reasonable efforts to collect Delinquent Rents. Rents and other income, if any, collected amounts received by Buyer from a tenant owing Delinquent Rent shall be applied: (A) first, to rents attributable to any period after the Closing shall be applied first to any amounts which are past due to Buyer on the date of receipt, and (B) then, to Delinquent Rents, which Buyer shall promptly remit to Seller. If within thirty (30) days after the Close of Escrow Buyer has not collected all Delinquent Rents, Seller shall have the right to attempt to collect such Delinquent Rents using all remedies available to Seller at law or in equity; provided, however, that Seller shall not cause any Lease to be terminated in Seller's efforts to collect Delinquent Rents.
(3) Buyer shall be credited and Seller shall be charged with any security deposit or advance rentals in the nature of security deposits made by tenants under the Leases, except to the extent such rents or other income relate previously applied by Seller in accordance with the applicable Lease.
(c) Utilities, services and operating expenses with respect to the period ending Land and the Improvements shall be prorated to the Close of Escrow based upon the latest available information taking into account the obligation of tenants under the Leases to pay such utility, services and operating expenses.
(d) Premiums for casualty and liability insurance shall not be prorated as Buyer will be obtaining its own such insurance upon the Close of Escrow.
(e) Interest (at the current pay rate, and not the accrual rate) on or before the ClosingRancho Downey Loan shall be prorated at the Closing thereof.
(f) If a Closing occurs other than at the beginning of a calendar quarter, Seller shall agree to pay to Buyer at the end of such calendar quarter an amount, such rents or other income that when Seller receives the dividend on the Acquisition Common Stock received at such Closing for such calendar quarter (which dividend shall be paid to Seller within ten (10) days after end regardless of the month in date during the calendar quarter on which such amounts were collected. Buyer shall incur no obligation the Acquisition Common Stock is issued to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at Seller), the Closing or, at Seller's option, credited to Buyer against difference between the cash portion amount of the Purchase Price at dividend and the Closingamount so paid is equal to the pro-rated amount the Seller would have received if such dividend were payable only for the actual time during such calendar quarter that Seller owned such Acquisition Common Stock. Escrow Holder If any errors or omissions are made regarding adjustments and prorations as set forth above, the parties shall not be concerned with any prorations that are to be made after make the Closing pursuant to this Agreementappropriate corrections promptly upon the discovery thereof.
Appears in 1 contract
Samples: Purchase and Sale Agreement (Meridian Industrial Trust Inc)
Prorations. The following (a) If one Party remits to the appropriate Taxing Authority payment for Taxes that are subject to proration under this Section 11.2 and if such payment includes the other Party’s share of such Taxes, then, upon remittance of a statement certifying the amount of Tax shown on such Tax Return allocable to the other Party pursuant to Section 11.2(b), such other Party shall promptly reimburse the remitting Party for its share of such Taxes.
(b) In the case of Taxes that are payable with respect to any taxable period beginning before, and ending after, the Closing Date (each, a “Straddle Period”), the portion of any such Tax that is allocable to the portion of such Straddle Period ending at the Closing Date will be:
(i) in the case of Taxes that are either (A) based upon or related to income, wages or receipts or (B) imposed in connection with any sale or other transfer or assignment of property (real or personal, tangible or intangible) deemed equal to the amount that would be prorated between Buyer and Seller as of 11:59 p.m. local time of payable if the day immediately preceding taxable year ended or otherwise closed on the Closing Date; and
(ii) in the case of Taxes imposed on a periodic basis with respect to the Assets or otherwise measured by the level of any item, such as property and ad valorem Taxes, deemed to be the amount of such Taxes for the entire period (or, in the case of such Taxes determined on an arrears basis, the basis amount of such Taxes for the actual immediately preceding period), multiplied by a fraction, the numerator of which is the number of calendar days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on the Closing Date and the denominator of which is the number of calendar days in the entire Straddle Period. Any credit or before refund resulting from an overpayment of Taxes for any Straddle Period will be prorated based upon the Closing, such rents or other income shall be paid to Seller within ten (10method employed in this Section 11.2(b) days after end taking into account the type of the month in Tax to which the refund relates. In the case of any Tax based upon or measured by capital (including net worth or long-term debt) or intangibles, any amount thereof required to be allocated under this Section 11.2(b) will be computed by reference to the level of such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer items at the Closing or, at Seller's option, credited Date. All determinations necessary to Buyer against effect the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to foregoing allocations will be made in a manner consistent with prior practice of Sellers. For the avoidance of doubt, all income, gain, loss and deduction attributable to the Business through the Closing Date will be included in the income Tax Return of Sellers, and all income, gain, loss and deduction attributable to the Business after the Closing pursuant to this AgreementDate will be included in the income Tax Return of Purchasers.
Appears in 1 contract
Samples: Asset Purchase Agreement
Prorations. The following (a) Rents, including, without limitation, base rents, minimum guaranteed rents, percentage rents, if any, and any additional charges and expenses payable by tenants under Leases, all as and when actually collected; real property taxes and assessments; water, sewer and utility charges (if not separately metered and paid by tenants); amounts payable under any Service Contracts that survive Closing or other agreements or documents that survive Closing; annual permits and/or inspection fees (calculated on the basis of the period covered); and any other expenses of the operation and maintenance of the Property, shall all be prorated between Buyer and Seller as of 11:59 p.m. local time on the day immediately prior to Closing (i.e., Buyer is entitled to the income and responsible for the expenses of the day immediately preceding the Closing Dateof Closing), on the basis of a 365-day year. Buyer shall reimburse Seller for the actual number tenant improvement costs, leasing commissions, and other expenses, and free rent and other concessions, as and to the extent provided in Section 7.2. Delinquent rents or other delinquent sums that are due pursuant to the terms of days elapsed during the Leases shall not be prorated. Any prepaid rents attributable to periods from and after the Closing Date shall be transferred to Buyer either directly or by way of a credit against the Purchase Price in favor of Buyer. Buyer shall receive a credit against the Purchase Price for the amount of all "free rent" or abated rent to which any tenant may be entitled under a Lease, to the extent relating to periods occurring from and after the Closing Date. All rents collected after the Closing shall be applied and paid as provided in this Section 8.5(a). If a tenant shall specifically designate a payment as being attributable to, or if it is readily ascertainable that a payment received from a tenant is attributable to, a specific period of time or for a specific purpose, including, without limitation, for operating expenses or real estate tax payments which were not paid or were underpaid by such tenant or for reimbursement for work performed by Seller on the tenant's premises, such payment shall be so applied. If there is no such designation or if not so readily ascertainable, any payment received from a tenant after Closing shall be deemed a payment of rent and other sums due after the Closing until the tenant is current on rents and sums due under the applicable Lease on or after the Closing, and then such payments shall be applied to rents and other sums owing for the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income payments shall be paid to Seller within ten (10) days after end to the extent of the month in which such amounts were collectedany rent or other sums owing to Seller for periods prior to Closing. Buyer shall incur no obligation use reasonable efforts to collect such rents and other sums owing to Seller for a period of six (6) months after Closing. Seller retains the right to collect any such rents and other sums from tenants after Closing; provided, however, that Seller shall have no right to terminate a Lease, cause any such tenant to be evicted or to exercise any other landlord remedy against such tenant. Without limiting the generality of the immediately preceding sentence, in no event shall Seller commence any legal proceedings against any tenant after the Closing with respect to any matter relating to a Lease. Reconciliations of taxes, insurance charges and other expenses owed by tenants under Leases for the calendar year (or fiscal year if different from the calendar year) in which the Closing occurs shall be prepared by Buyer with the cooperation of Seller within one hundred eighty (180) days following the end of such year in accordance with the requirements set forth in the Leases and as provided in this Section 8.5(a). For those Leases in which tenants pay a proportionate share of taxes, insurance charges or other expenses over a base year amount or expense stop, the proration between the parties of the income received from tenants over such base year amount or expense stop shall be calculated based on the total amount of such expenses for the Property incurred by both Seller and Buyer for the entire calendar (or, if applicable, fiscal) year, rather than on the amount of such expenses actually incurred by each party for such year, in order to enable the parties to determine if the base year amount or expense stop for such year is exceeded. Such income as so calculated shall be prorated between the parties based on the number of days each party owned the Property during such year and otherwise in accordance with this Section 8.5(a). By way of illustration but without limiting the foregoing, if: (i) the Closing occurred on June 1, 2013, (ii) during Seller's period of ownership of the Property during the year 2013 (151 days), Seller incurred expenses of $450,000, (iii) during Buyer's failure period of ownership of the Property during the year 2013 (214 days), Buyer incurred expenses of $500,000, (iv) total expenses for such year recovered from tenants under Leases is $400,000 (e.g., $950,000 total expenses minus a total base year amount of $550,000), then Seller would be entitled to collect $165,479.45 of such rentals income ($400,000/365 days = $1,095.89 per diem multiplied by 151 days) and Buyer would be entitled to $234,520.55 of such income ($1,095.89 per diem multiplied by 214 days), regardless of the actual amount of expenses actually incurred by each party (which would have instead resulted in Seller receiving $189,473.68 of such income and Buyer receiving $210,526.32 of such income). For Leases which do not have a base year amount or expense stop, the proration between the parties of income received from tenants from reconciliations of expenses under the Leases shall be calculated based on the expenses actually incurred by each party for such year and each party's period of ownership of the Property, and otherwise in accordance with this Section 8.5(a). The amount of any cash security deposits received by Seller under Leases (and not otherwise forfeited by a tenant in accordance with the terms of a Lease) shall be credited against the Purchase Price (and Seller shall be entitled to retain such cash security deposits). Seller shall receive credits at Closing for the amount of any utility or other incomedeposits with respect to the Property to the extent Buyer receives the benefit of such deposits. All Buyer shall cause all utilities to be transferred into Buyer's name and account at the time of Closing. Seller shall use reasonable efforts to cause all non-cash security and any other refundable deposits paid by tenants in the form of letters of credit to Seller pursuant to tenant leases shall be delivered by certified funds transferred to Buyer at the time of Closing. Seller and Buyer hereby agree that if any of the aforesaid prorations and credits cannot be calculated accurately on the Closing orDate or in the case of rents or other charges received from tenants, such amounts have not been collected, then the same shall be calculated as soon as reasonably practicable after the Closing Date or the date such amounts have been collected, and either party owing the other party a sum of money based on such subsequent proration(s) or credits shall pay said sum to the other party within thirty (30) days thereafter. Any amounts not paid within such thirty (30) day period shall bear interest from the date actually received by the payor until paid at Sellerthe greater of (i) the rate of ten percent (10%) per annum or (ii) the prime rate (or base rate) reported from time to time in the "Money Rates" column or section of The Wall Street Journal as being the base rate on corporate loans at larger United States money center commercial banks plus two (2) percent. Upon request of either party, the parties shall provide a detailed and accurate written statement signed by such party certifying as to the payments received by such party from tenants from and after Closing and to the manner in which such payments were applied, and shall make their books and records available for inspection by the other party during ordinary business hours upon reasonable advance notice.
(b) Seller shall pay the base premium for the Title Policy and Buyer shall pay the costs for all endorsements to the Title Policy requested by Buyer (including but not limited to any extended coverage, whether by endorsement or deletion of exception), and the costs of deleting any "Survey Exception" from the Title Policy. The costs of the Survey with the Approved Table A Items, ordered in accordance with Section 4.1(a) hereof, shall be paid by Seller upon Closing. The costs of any additional Table A items that are requested by Buyer or Buyer's optionlender and are not Approved Table A Items shall be the responsibility of Buyer. One-half of all escrow and closing fees shall be paid by Seller at Closing. Buyer shall pay: (i) one-half of all escrow or closing fees; and (ii) all recording charges incident to the recording of the deed for the Real Property at Closing. Transfer taxes imposed upon the transfer of the Property by applicable law shall be shared equally by Seller and Buyer. The parties will execute and deliver any required transfer or other similar tax declarations to the appropriate governmental entity at Closing.
(c) Any percentage rent for the rental periods including Closing shall be prorated upon receipt, credited to Buyer against based upon the cash tenant's sales for the portion of the Purchase Price at lease year allocable to Seller's and Buyer's respective ownership of the Property.
(d) The provisions of this Section 8.5 shall survive the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 1 contract
Samples: Purchase and Sale Agreement (American Realty Capital - Retail Centers of America, Inc.)
Prorations. The following shall be prorated between Buyer Except as otherwise set forth in this Agreement, all taxes and Seller as of 11:59 p.m. local time other operating expenses and revenue of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the ClosingClosing Date. Rents and other income, if any, collected by Buyer after Taxes shall be prorated based upon the current year's tax. If the Closing takes place and the current year's taxes are not fixed and the current year's assessment is available, taxes shall be applied first prorated based upon such assessment and the prior year's millage. If the current year's assessment is not available, then taxes shall be prorated on the prior year's tax. In the event the tax proration is incorrect on the Closing Date because the property is reassessed for the tax year of the Closing by the governmental agency having jurisdiction over the Property, subsequent to any amounts due to Buyer and thenthe Closing Date, BUYER or SELLER shall be entitled, as the case may be, to the extent a reproration of such rents or other income relate taxes upon written request made to the period ending on other party. SELLER or before BUYER shall remit the Closing, such rents or other income shall be paid to Seller reproration adjustment amount requested within ten (10) days after end of request therefor. In the event SELLER or BUYER fails to remit the reproration amount requested within said ten (10) day period, the party seeking reimbursement shall be entitled to all costs of collection, including all attorneys' fees and costs incurred in collection thereof and the amount owing shall bear interest at the highest lawful rate until paid, it being acknowledged that this right shall survive Closing and delivery of the month Special Warranty Deed. Any rents received by SELLER in which such amounts were collectedrespect of the period after the Closing Date shall be promptly remitted to BUYER. Buyer With regard to delinquent rents, if any, BUYER shall incur no obligation not be held responsible for and BUYER shall not be required to Seller for Buyer's failure institute any proceedings whatsoever to collect such rentals or other incomedelinquent rents. However, all rents received by BUYER attributable to periods prior to the Closing Date shall be promptly remitted by BUYER to SELLER. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases rents collected after the Closing shall be delivered by certified funds first applied to Buyer at current rents due, then to rents for periods prior to the Closing or, at Seller's option, credited Date unless they are clearly intended by the tenant to Buyer against apply for the cash portion period prior to Closing in which event they shall be promptly remitted to SELLER. This obligation to remit shall survive the Closing and delivery of the Purchase Price Special Warranty Deed. SELLER shall deliver to BUYER at the Closing. Escrow Holder , copies of such statements, invoices bills and receipts as shall not be concerned with requested by BUYER to enable BUYER to verify the accuracy of the amounts of any prorations that are made pursuant to this paragraph. BUYER shall be credited at Closing with all advance rentals and tenant security deposits previously paid to SELLER. All prorations shall be made so that SELLER has the benefit of all income and the burden of all expenses up to and including the Closing Date and BUYER has the benefit of all income and the burden of all expenses after the Closing pursuant Date. SELLER and BUYER shall indemnify and hold harmless the other party harmless from all claims or damages, expenses or obligations, including applicable attorney's fees, incurred in connection with the prorated items due to this Agreementtheir respective periods of ownership or the Real Property or the Personal Property, and for the benefit and charges relating therto.
Appears in 1 contract
Prorations. (a) The following items shall be prorated between Buyer Seller and Seller Purchaser as of 11:59 p.m. local time of on the day date immediately preceding the Closing Date; prorations credited to Purchaser shall reduce the Purchase Price and pro-rations credited to Seller shall increase the Purchase Price at Closing as follows:
(i) city, state, and county ad valorem taxes for the year in which the Closing occurs based on the ad valorem tax bills for the Real Property, if then available for such year, or if not, then on the basis of the actual number ad valorem tax bxxx for the Real Property for the immediately preceding year. (If such proration is based on an ad valorem tax bxxx for the immediately preceding year and should such proration prove to be inaccurate on receipt of days elapsed during the month ad valorem tax bxxx for the Real Property for the year of Closing, then either Seller or Purchaser, as applicable, may demand at any time after Closing a payment from the other party in which the Closing occurs: general and special county and city real property an amount sufficient to correct such malapportionment); and
(ii) sanitary sewer taxes and special assessments (collectivelyutility charges, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions any except to the extent permissible that any such accounts remain in the name of and are the responsibility of any one or more Seller Parties following Closing; provided, however, that Purchaser may elect, prior to Closing, to require that the meters for said year, all utility charges be read and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion terminated as of the Property) end of the last business day preceding the Closing Date, in which case Seller shall be responsible for and allocable either shall pay for all such charges first accruing or relating to the period before prior to the Closing or to the period after the Closing, then Buyer Date. Purchaser and Seller shall adjust direct the actual Taxes between Buyer Escrow Agent to prepare a proposed schedule (the “Proration Schedule”) prior to Closing, including the items listed above and Seller, outside of Escrow, as soon as reasonably possible following any other items the Closingparties determine necessary. In addition Such Proration Schedule shall include all applicable expenses with regard to the foregoing apportionments, Purchased Property. Seller and Purchaser will use all reasonable efforts to finalize and agree upon the Proration Schedule at least two (2) business days prior to Closing.
(b) Seller shall receive all rents income from the Purchased Property attributable to the period prior to the Proration Date and shall, unless otherwise provided for in this Agreement, be responsible for all expenses of the Purchased Property attributable to the period prior to 11:59 P.M. on the date immediately preceding the Closing Date (the “Proration Date”). To the extent any payments from residents are the property of the Seller, in the event Purchaser receives any payment from a resident for rent or other amounts due for any period prior to or after Closing or payment of any other receivable of Seller, Purchaser shall forward such payment to Seller.
(c) Purchaser shall receive all income accruedfrom the Purchased Property attributable to the period from and after the Proration Date and shall, except as otherwise provided for in this Agreement, be responsible for all expenses of the Purchased Property attributable to the period from and after the Proration Date.
(d) The parties agree that any amounts that may become due under this Section 3.4 shall pay all be paid at Closing as can best be determined. A post-Closing reconciliation of prorated items shall be made by the parties within ninety (90) days after the Closing Date and any amounts due at that time shall be promptly forwarded to the respective party to whom such amounts are due in a lump sum payment. Any additional amounts which may become due after such determination shall be forwarded at the time they are received. Any amounts due under this Section 3.4 which cannot be determined within ninety (90) days after the Closing Date (such as, for example, fiscal year-end real estate taxes) shall be reconciled as soon thereafter as such amounts can be determined. Purchaser and Seller agree that each shall have the right to audit the records of the other expenses accrued or incurred, in connection with the ownership or operation of Property before the any such post-Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closingreconciliation. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be Any payments made after the Closing pursuant to this AgreementSection 3.4 shall be treated as a purchase price adjustment for income tax purposes.
Appears in 1 contract
Samples: Asset Purchase Agreement (American Realty Capital Healthcare Trust II, Inc.)
Prorations. At least five (5) business days prior to Closing, Sellers shall provide to Buyer a draft proration schedule and information and verification reasonably necessary to support such prorations schedule. Buyer and Sellers shall use best efforts to finalize as many items on such proration schedule as possible before Closing. The following items in subparagraphs (a) through (f) of this section 8.4 shall be prorated between Sellers and Buyer and Seller based on the actual number of days in the applicable period, as of 11:59 p.m. local time the end of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general with Sellers being entitled to income and special county and city real property taxes and special assessments (collectively, "Taxes") obligated for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either expenses attributable to the period before the Closing or prior to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents being entitled to the income and obligated for expenses attributable to the Closing Date and thereafter.
(a) The current installment of real property taxes, assessments and other income accruinggovernmental impositions levied against the Property shall be prorated between Sellers and Buyer as of the Closing Date and Buyer shall be responsible for real estate taxes and assessments applicable to Buyer’s period of ownership, and Sellers shall pay all other expenses accrued be responsible for real estate taxes and assessment applicable to each Seller’s period of ownership, respectively, even if such taxes and assessment installment payments are not yet due and payable or incurred, in connection with have not yet been actually assessed. Buyer shall not be responsible for any supplemental taxes relating to the ownership or operation of Property on or after period prior to the Closing Date, all regardless of which rentswhen such supplemental taxes are actually assessed. If Closing occurs before the tax rate for the current tax year is fixed, the apportionment of taxes shall be based on the tax rate for the preceding period applied to the latest assessed valuation and, after Closing, when the actual real property taxes are finally fixed, Sellers and Buyer shall promptly make a recalculation of such proration, and the appropriate party shall make the applicable payment reflecting the recalculation to the other party.
(b) Buyer shall receive a credit for any rent and other income (and expenses any applicable state or local tax on rent) under the Leases collected by any Seller before Closing that applies to any period after Closing. Uncollected rent and other uncollected income (including, without limitation, amounts payable for pass-through expenses) shall not be prorated at Closing. After Closing, all rent and other income collected by either Buyer or Sellers from any Tenant shall be prorated as of the Closing. Rents applied, first to such Tenant’s then current monthly rental and other incomethen to arrearages, if any, collected owed by such Tenant in the reverse order in which they were due, after deducting any actual, reasonable out-of-pocket collection costs. Buyer shall xxxx and attempt to collect such rent arrearages and other uncollected income in the ordinary course of business, but shall not be obligated to engage a collection agency or take legal action to collect any rent arrearages or other uncollected income. Any rent or other income received by Buyer from a Tenant under its Lease after Closing that is owed to any Seller pursuant to the terms hereof shall be remitted to such Seller promptly after receipt. Any rent or other income received by any Seller from a Tenant under its Lease applicable to such Seller’s Real Property after Closing that is owed to Buyer pursuant to the terms hereof shall be remitted to Buyer promptly after receipt. Buyer and Sellers shall promptly notify each other of the receipt of any such rent or other income.
(c) Where the Leases contain Tenant obligations for taxes, common area expenses, operating expenses or additional charges of any other nature, and where any Seller shall have collected any portion thereof in excess of amounts owed by such Seller for such items for the period prior to the Closing Date, then there shall be an adjustment and credit given to Buyer on the Closing Date for such excess amounts collected. Buyer shall apply all such excess amounts to the charges owed by Buyer for such items for the period after the Closing Date and, if required by the Leases, shall rebate or credit Tenants with any remainder. If it is determined under section 8.5 below that the amount collected during such Seller’s ownership period exceeded expenses incurred during the same period by more than the amount previously credited to Buyer at Closing, then such Seller shall promptly pay to Buyer the deficiency.
(d) Sellers or Buyer, as the case may be, shall receive a credit for regular charges under the Contracts (to the extent, in the Sellers’ case, the same are not required to be applied first terminated in accordance with section 6.1(f)) paid and applicable to Buyer’s period of ownership or payable and applicable to any amounts due Seller’s period of ownership, respectively.
(e) Buyer shall receive a credit for all Leasing costs (i) set forth on Schedule 5.1(g)(1) and (ii) set forth in any Lease documents not disclosed to Buyer as of the date of this Agreement, in each case whether due and thenpayable as of or after the Closing. Buyer shall assume at Closing and thereafter be responsible for, and shall pay, disburse or, as applicable, credit when due, (a) all tenant improvement allowances described on Schedule 5.1(g)(1) owing to the applicable tenants under their respective Leases, (b) all abated rent or other rent credits described on Schedule 5.1(g)(1) to which the applicable tenants are entitled under the terms of their Leases, and (c) all leasing commissions to the applicable brokers as described on Schedule 5.1(g)(1).
(f) Buyer shall receive a credit for any Security Deposits under the Leases, if and to the extent such rents deposits have not been otherwise applied by any Seller to any obligations of Tenants under any Leases for such Seller’s Real Property, and Buyer shall assume full responsibility for all Security Deposits so delivered to Buyer. In the event that any Security Deposits are in the form of letters of credit or other income relate financial instruments, Sellers will cooperate with Buyer to have Buyer named as beneficiary under the period ending same. Buyer will not receive a credit for any such financial instruments.
(g) The adjustment for utility charges shall be made on or the basis of the most recently issued bills therefor, which are based on meter readings no earlier than forty-five (45) days before the Closing, such rents or other income Closing Date. Such adjustment shall be paid to Seller within ten (10) days after end reprorated when the next utility bills are received. Sellers shall receive a credit for the amount of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security deposits, if any, with utility companies that are transferable and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds that are assigned to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion Closing. All of the Purchase Price at the obligations of Sellers and Buyer as set forth in this section 8.4 shall survive Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 1 contract
Samples: Purchase Agreement (Hudson Pacific Properties, Inc.)
Prorations. The following shall be prorated between Buyer All income (including cash on hand and Seller as of 11:59 p.m. local time accounts receivable), current operating expenses, accounts payable, real estate taxes, other taxes and assessments, all utilities, water and sewer charges, licenses or permit fees relating to the operation of the day immediately preceding Premises, real estate and personal property ad valorem taxes, prepayments made under the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments Contracts (collectively, "Taxes"to be assumed by Purchaser pursuant to Article III hereof) for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policiesapplicable). Proration of Taxes , shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, adjusted and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents All franchise fees, maintenance and other incomeservice agreements (whether or not service is continued by Purchaser) and utility charges shall be determined as of Closing and paid by Seller or appropriate adjustments made if Purchaser at its option accepts an assignment of any such agreement. If such charges and expenses are unavailable on the Closing Date, if any, collected by Buyer a re-adjustment of such charges and expenses shall be made within thirty (30) days after the Closing or as soon thereafter as such charges and expenses are available. The parties agree to cooperate in good faith in effecting such a final reconciliation and each party shall promptly pay (or reimburse the other party for) any expense item that is chargeable to the former party and shall promptly remit any income item to the other party if entitled thereto. Seller shall use reasonable efforts to arrange for the rendition of final bills by the utility companies involved as of the Closing Date. Guest room revenues of the Premises, whether in cash or in accounts receivable, arising from occupancy for the night beginning on the day preceding the Closing Date and ending on the Closing Date shall be applied first credited one-half to any amounts due Purchaser and one-half to Buyer Seller. Seller shall collect all income and then, other sums payable by tenants or guests (or otherwise) and shall be responsible for the payment of all expenses on account of services and supplies furnished to and for the extent such rents or other income relate to benefit of the period ending on or before Premises through and including the Closing, with expenses for the night beginning on the day preceding the Closing Date and ending on the Closing Date being handled in the same manner as guest room revenues for such rents or other income period. Purchaser shall be paid to Seller within ten (10) days after end credited with any deposits from tenants or guests of the month in Premises which are refundable to such amounts were collectedtenants or guests. Buyer Seller shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.remit to
Appears in 1 contract
Prorations. The following shall be prorated between Buyer Assessments (including any charges under any property owner’s associations and Seller as of 11:59 p.m. local time of condominium associations, recorded declarations, or the day immediately preceding the Closing Datelike), on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectivelyutility charges, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurscurrent taxes, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said yearrents, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closingmaintenance fees, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents Operating Agreements and other income accrued, contracts and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of agreements which rents, other income and expenses Purchaser assumes shall be prorated as of 12:01 a.m. on the Closing Date with Purchaser being entitled to all income and liable for all expenses as of the Closing Date. At the Closing, Seller shall pay to Purchaser in cash the amount of any prepaid rents paid to Seller by tenants of the Property relating to periods beginning with the Closing Date. Rents If ad valorem taxes for the year in which the sale is closed are not available on the Closing Date, proration of taxes shall be made on the basis of taxes assessed in the previous year, with a subsequent cash adjustment of such proration to be made between Seller and other incomePurchaser, if necessary, when actual tax figures are available. All roll-back taxes which are assessed against the property due to a change in land use or ownership shall be paid by Purchaser. Any special assessments applicable to the Property for improvements previously made to benefit the Property shall be paid by Seller. Seller shall pay to Purchaser at the Closing in cash the amount of any deposits that were paid by tenants of the Property, and Purchaser shall send tenant notice letters to the tenants stating that it has received and is responsible for the deposits, specifying the exact dollar amount of such deposit. No prorations shall be made in relation to rents delinquent as of the Closing Date, but Purchaser shall make a good faith attempt (but Purchaser shall not be required to institute any suit) to collect the same for Seller’s benefit after the Closing and such collections, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made accruing after the Closing pursuant Date with the balance being applied to this Agreementthe rents accruing prior to the Closing Date.
Appears in 1 contract
Prorations. The following shall To the extent not otherwise addressed in this Agreement, all sales taxes, personal and real property taxes and assessments which are past due or have become due in connection with the operation of the Dealerships on or before the Closing Date will be paid by Company at the Closing, together with any penalty or interest thereon, unless such taxes and assessments are being contested in good faith through appropriate proceedings or reserved for on the Closing Date Balance Sheet or Reviewed Balance Sheet. Current personal and real property taxes and assessments will be prorated and adjusted between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding Closing Date on a due date basis. If current tax bills are unavailable at the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general prior year’s tax bills will be used for proration purposes and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall will be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then re-prorated between Buyer and Seller shall adjust when the actual Taxes between Buyer and Sellercurrent year’s tax bills are received. Any amounts owed by Seller or the Company, outside of Escrowon the one hand, as soon as reasonably possible following or Buyer, on the Closing. In addition other hand, with respect to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall re-proration will be paid to Seller the other party or parties, as applicable, within ten (10) days after end the determination of such re-proration. All operating expenses (other than Prepaid Expenses) of the Dealerships for the month of Closing will be prorated and adjusted between Buyer, on the one hand, and Seller, on the other hand, as of the Closing Date. Any and all stamp, transfer, sales and excise Taxes due in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases connection with the transactions contemplated hereby shall be delivered shared by certified funds to Buyer at Xxxxx and Seller. Any fees due in connection with the Closing or, at Seller's option, credited to Buyer against the cash portion early termination of the Purchase Price at the Closing. Escrow Holder Company’s DMS Agreement shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementshared equally by Xxxxx and Seller.
Appears in 1 contract
Samples: Stock Purchase Agreement (Penske Automotive Group, Inc.)
Prorations. The following shall be prorated between Buyer Monthly rent paid by the tenants under the Leases (including, but not limited to, fixed monthly rentals, additional rents, escalations, operating expense pass-throughs and Seller as of 11:59 p.m. local time of other sums and charges payable by the day immediately preceding tenants under the Closing DateLeases), on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city non-delinquent real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said yeartaxes, and other revenues, income and receivables, and all items of costs and expenses with respect to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (excluding any costs or any portion of the Property) and allocable either expenses relating to the period before the services, utilities or contracts which are to be terminated at Closing or to which are directly payable by tenants under the period after the ClosingLeases), then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the ClosingClose of Escrow. Rents and other income, if any, collected by Buyer after The unapplied portion of any security deposits under the Closing Leases shall be applied first to any amounts due to Buyer and then, to credited at the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end Close of the month in which such amounts were collected. Buyer shall incur no Escrow against Buyer's obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against deliver the cash portion of the Purchase Price Price. Seller reserves all claims and causes of action against tenants and others who are in arrears, and Buyer shall promptly remit to Seller any arrearages upon receipt thereof provided that all current obligations of such tenant have been paid. Additionally, with respect to any property tax appeal or reassessment filed by Seller for tax years (or portions thereof) prior to the Close of Escrow, Seller shall be entitled to the full amount of any refund or rebate resulting therefrom (less any credits owning to the tenants under the Lease in connection with such refund or rebate). Any items to be prorated that is not determined or determinable at the ClosingClosing shall be promptly adjusted by Buyer and Seller by appropriate cash payment outside of Escrow when the amount due is determined. Escrow Holder Either party shall not be concerned with entitled to request such an adjustment, by written demand on the other party, at any prorations that are to be made time within two (2) months after the Closing pursuant to this AgreementDate.
Appears in 1 contract
Prorations. The following shall be prorated between (a) Buyer and Seller agree that all of the items normally prorated, including those listed below (but not including Taxes), relating to the Acquired Assets and the Business of the Vero Beach Electric Utility shall be prorated, with Seller liable to the extent such items relate to any time period prior to the Closing Date, and Buyer liable to the extent such items relate to periods commencing on the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days):
(i) assessments and other charges (other than Taxes), if any, relating to the ownership, use or business of the Acquired Assets;
(ii) any prepaid expenses (including security deposits) relating to the Acquired Assets, but excluding any Prepaid Expenses payable by Buyer pursuant to Section 3.3(a)(ii);
(iii) any purchases of Acquired Assets during the six-month period prior to the Closing Date that (A) will have a remaining useful life of more than five years after the Closing Date, (B) exceed $25,000 per Acquired Asset, and (C) the acquisition of such Acquired Asset has been approved by Buyer, such approval not to be unreasonably withheld, conditioned or delayed;
(iv) rent and all other items (including prepaid services or goods not included in Inventory) payable under any of the Assumed Contracts; Transferable Permit;
(vi) any fees, charges or other payments with respect to any sewer rents and charges for water, telephone, electricity and other utilities for the substations being acquired hereunder; Governmental Authority; and
(viii) fees or charges (other than Taxes) imposed by any rent and other items (other than Taxes) payable or receivable relating to the Real Property Interests.
(b) In connection with the prorations referred to in (a) above, in the event that actual figures are not available as of 11:59 p.m. local time of the day date immediately preceding the Closing Date, on the basis prorations shall be based upon the actual amounts accrued through the date immediately prior to the Closing Date or paid for the most recent year (or other appropriate period) for which actual amounts paid are available. Such prorated amounts shall be determined at the same time as the Post-Closing Statement, set forth in Section 3.3(c), as part of the actual number of Post-Closing Statement. Prorations measured by calendar days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice number of valuation available for the fiscal days in a year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property appropriate period (or any portion of the Propertyi) and allocable either to the period before the Closing or to the period Date and (ii) on and after the Closing, then Closing Date. Seller and Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition agree to the foregoing apportionments, Seller shall receive all rents furnish each other with such documents and other income accrued, records as may be reasonably requested in order to confirm all adjustment and shall pay all other expenses accrued proration calculations made pursuant to this Section 3.6.
(c) To the extent that the proration of an item under this Section 3.6 allocates a portion of such item to a period (or incurred, in connection with the ownership or operation of Property portion thereof) ending before the Closing Date, and Buyer such portion shall receive all rents and other income accruing, and shall pay all other expenses accrued constitute an Excluded Liability. To the extent that the proration of an item under this Section 3.6 allocates a portion of such item to a period (or incurred, in connection with the ownership or operation of Property portion thereof) ending on or after the Closing Date, all of which rents, other income and expenses such portion shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementconstitute an Assumed Liability.
Appears in 1 contract
Samples: Asset Purchase and Sale Agreement
Prorations. The In respect of the relevant Property, as between Purchaser and the relevant Seller, the following prorations and adjustments shall be prorated between Buyer made in cash at Closing, or thereafter if Purchaser and the relevant Seller as of 11:59 p.m. local time shall agree, all with respect to the Purchase Price payable in respect of the day immediately preceding the Closing Daterelevant Property:
(a) All city, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general state and special county and city real property ad valorem taxes and special assessments (collectivelysimilar impositions levied or imposed upon or assessed against the Property, hereinafter called the "Taxes") , for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses occurs shall be prorated as of the Closing Date. In the event the Taxes for such year are not -12- determinable at the time of Closing, said Taxes shall be prorated on the basis of the best available information with respect to the Taxes anticipated to be levied or imposed for the year in which the Closing occurs (but in no event shall the basis for such proration be less than 105% of the Taxes levied or imposed for the preceding year upon the Lilburn Lodge), and Seller and Purchaser shall re-prorate the Taxes for such year promptly upon the receipt of the tax bills for such year and shall make between themselves any equitable adjustment required by reason of any difference between the estimated amount of the Taxes used as a basis for the proration at Closing and the actual amount of the Taxes for such year. In the event any of the Taxes are due and payable at the time of Closing, the same shall be paid at Closing. Rents If the Taxes are not paid at Closing, Seller shall deliver to Purchaser the bills for the Taxes promptly upon receipt thereof and other incomePurchaser shall thereupon be responsible for the payment in full of the Taxes within the time fixed for payment thereof and before the same shall become delin- quent;
(x) Xxx xxility charges for the Property (including, if anywithout limitation, collected by Buyer after telephone, water, storm and sanitary sewer, electricity, gas, garbage and waste removal) shall be prorated as of the Closing Date, transfer fees required with respect to any such utility shall be applied first paid by or charged to Purchaser, and Seller shall be credited with any amounts due to Buyer and then, deposits transferred to the extent account of Purchaser; provided, however, that at either party's election any one or more of such rents utility accounts shall be closed as of the Closing Date, in which event Seller shall be liable and responsible for all charges for service through the Closing Date and shall be entitled to all deposits theretofore made by Seller with respect to such utility, and Purchaser shall be responsible for reopening and reinstituting such service in Purchaser's name, and shall be responsible for any fees, charges and deposits required in connection with such new account;
(c) Cash on hand, cash in banks and room revenues or other income relate to charges due for the period ending prior to, and paid by guests on or before 12:01 a.m. on the Closing, such rents Closing Date shall belong to Seller. Any accounts receivable resulting from room revenues or other income charges due from guests belonging to Seller shall be paid collected by Seller or by Purchaser in the normal course of operating the motel property, and remitted to Seller within ten as received, without any obligation on Purchaser of any kind to effect collection or guarantee payment of such receivables;
(10d) days after end of Seller shall pay all payroll charges and the month in which such amounts were collected. Buyer shall incur no obligation to Seller employee benefits for Buyer's failure to collect such rentals or other income. All security time worked (specifically including accrued vacation, sick pay, holiday pay and any other refundable deposits paid the like) by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at employees through 12:01 a.m. on the Closing orDate, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after including all payroll taxes and insurance through the Closing pursuant to this Agreement.Date. Purchaser will be responsible for all payroll and all other such expenses in connection with the Hotels accruing after 12:01 a.m. on the Closing Date;
Appears in 1 contract
Samples: Purchase and Sale Agreement (Suburban Lodges of America Inc)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and parties intend that Seller shall adjust operate for its own account the actual Taxes between Buyer and Seller, outside business conducted at the Branch Offices until the close of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before business on the Closing Date, and that Buyer shall receive all rents operate such business for its own account on and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date. Thus, all except as otherwise specifically provided in this Agreement, items of expense directly attributable to the operation of the Branch Offices (which rents, other income and shall not include any general overhead expenses of Seller) shall be prorated as of the Closing. Rents close of business on the Closing Date, whether or not such adjustment would normally be made as of such time, including, without limitation, (a) telephone, electric, gas, water, and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, utility services (to the extent it is not possible to transfer such services into the name of Buyer as of the Closing Date), (b) taxes and rents or other income relate associated with the Real Property and Personal Property, (c) assessments (including, without limitation, assessments attributable to FDIC deposit insurance), (d) payments due on Assumed Contracts, (e) wages, salaries, and earned benefits (including accrued sick leave, vacation and PTO benefits assumed) of Hired Employees, and employment taxes and unremitted withholdings related thereto, and (f) similar expenses related to the Assets transferred hereunder. To the extent any such item has been prepaid by Seller for a period ending on or before extending beyond the ClosingClosing Date, such rents or other income there shall be a proportionate adjustment in favor of Seller. Any items which would appropriately be subject to proration but which cannot be prorated by the Adjustment Payment Date will be prorated as soon as the requisite information is available and will be paid promptly by the appropriate party after this time. Notwithstanding the foregoing, any other prepaid expenses not directly reducing expenses to Seller within ten (10) days after end of be incurred by Buyer following the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security Closing Date and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at unearned non-interest income associated with the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder Safe Deposit Box Business shall not be concerned with any prorations that are to be made after prorated between the parties as of the Closing pursuant to this AgreementDate.
Appears in 1 contract
Samples: Branch Purchase and Assumption Agreement (Harrington West Financial Group Inc/Ca)
Prorations. The following items shall be prorated and/or ---------- credited between Buyer Seller and Seller Purchaser as of 11:59 p.m. local time Midnight preceding the date of Closing:
(a) Rents. Rents, additional rents, operating costs, and other ----- income of the day immediately preceding Property (other than security deposits) collected by Seller from the Tenant for the month of Closing. Purchaser shall also receive a credit against the Purchase Price payable by Purchaser to Seller at Closing Datefor any rents or other sums prepaid by the Tenant for any period following the month of Closing, or otherwise. Purchaser shall receive a credit against the Purchase Price payable by Purchaser to Seller at Closing for the entire amount of the "Capital Reserve" paid by the Tenant under the Lease and not theretofore applied to any capital expenses as authorized by Section 3.5(b) of the Lease and Paragraph 9(c) hereof. Seller hereby acknowledges that Purchaser shall not be legally responsible to Seller for the collection of any uncollected rent or other income under the Lease that is past due or otherwise due and payable as of the date of Closing. Purchaser agrees that if (i) Tenant is in arrears on the basis date of Closing in the payment of rent or other charges under such Tenant's Lease, and (ii) upon Purchaser's receipt of any rental or other payment from the Tenant, such Tenant is, or after application of a portion of such payment will be, current under such Lease in the payment of all accrued rental and other charges that become due and payable on the date of Closing or thereafter and in the payment of any other obligations of the actual number Tenant to Purchaser, then Purchaser shall refund to Seller, out of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent of the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of such payment remaining after Purchaser deducts therefrom any and all sums due and owing it from the Property) Tenant from and allocable either after the date of Closing, an amount up to the period before full amount of any arrearage existing on the Closing or to the period after the date of Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 1 contract
Samples: Purchase and Sale Agreement (Wells Real Estate Investment Trust Inc)
Prorations. The following (a) Buyer and Seller agree that all of the items normally prorated, including those listed below (but not including Income Taxes), relating to the business and operation of the Purchased Assets shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions Seller liable to the extent permissible for said year, and such items relate to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either time period prior to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive liable to the extent such items relate to periods commencing with the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days):
(i) Personal property, real estate and occupancy Taxes, assessments and other charges, if any, on or with respect to the business and operation of the Purchased Assets;
(ii) Rent, Taxes and all other items (including prepaid services or goods not included in Inventory) payable by or to Seller under any of Seller's Agreements;
(iii) Any permit, license, registration, compliance assurance fees or other fees with respect to any Transferable Permit;
(iv) Sewer rents and charges for water, telephone, electricity and other income accruing, utilities; and
(v) Rent and shall pay all Taxes and other expenses accrued or incurred, in items payable by Seller under the Real Property Leases assigned to Buyer.
(b) In connection with the ownership prorations referred to in (a) above, in the event that actual figures are not available at the Closing Date, the proration shall be based upon the actual Taxes or operation other amounts accrued through the Closing Date or paid for the most recent year (or other appropriate period) for which actual Taxes or other amounts paid are available. Such prorated Taxes or other amounts shall be re-prorated and paid to the appropriate Party within sixty (60) days of Property the date that the previously unavailable actual figures become available. The prorations shall be based on the number of days in a year or other appropriate period (i) before the Closing Date and (ii) including and after the Closing Date. Seller and Buyer agree to furnish each other with such documents and other records as may be reasonably requested in order to confirm all adjustment and proration calculations made pursuant to this Section 3.5. Notwithstanding anything to the contrary herein, all of which rents, other income and expenses no proration shall be prorated as of made under this Section 3.5 with respect to Taxes payable under the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, Pennsylvania Public Utility Realty Tax Act ("PURTA") that are attributable to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month year in which such amounts were collectedthe Xxxxing occurs (the "Closing Year PURTA Tax"). Buyer shall incur no obligation be fully responsible and indemnxxx Xeller for, and shall be entitled 25 to Seller for Buyer's failure receive all refunds relating to collect such rentals or other income. All security and payments Buyer makes with respect to, the Closing Year PURTA Tax; provided, however, that any other refundable deposits paid by tenants to Seller additional txx xxat is imposed in the year in which the Closing occurs pursuant to tenant leases Section 1104-A(b) of PURTA or any successor provision thereof (a "PURTA Surchxxxx") but which relates to the previous yexx xxall not be treated as the Closing Year PURTA Tax and Seller shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementresponsible for such PURTA Xxxxharge.
Appears in 1 contract
Samples: Purchase and Sale Agreement (Pennsylvania Electric Co)
Prorations. The following (a) Appropriate prorations shall be prorated between Buyer and Seller made on a daily basis as of 11:59 p.m. local time the close of business on the day immediately preceding applicable Closing Date with respect to the Included Sites at such Closing relating to Existing Tenant Leases and Ground Lease payments, utilities, and all other items of income and expense due or payable under any Ground Lease, Existing Tenant Lease or Site Maintenance Agreement, in each case, of a nature ordinarily prorated as of closing in real estate transactions (and not separately addressed elsewhere in this Agreement) including all items of income and expense that are prepaid or payable in arrears, any unbilled costs and fees and related accounts, notes and other receivables, in each case, of a nature ordinarily prorated as of closing in real estate transactions (and not separately addressed elsewhere in this Agreement) with ALLTEL being entitled to all such income and responsible for all such expenses relating to all periods on or prior to the applicable Closing Date and ATC being entitled to all such income and responsible for all such expenses relating to all periods subsequent to the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes Such prorations shall be calculated by ALLTEL and submitted to ATC for approval (which shall not be unreasonably withheld, delayed or conditioned), promptly after each Closing (and, in any event, within forty-five (45) days after the applicable Closing), and shall be settled in cash within thirty (30) days thereafter. To the extent that any relevant bills or other documentation necessary to effect such prorations are not available during such 45-day period, the parties shall make such prorations based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, reasonable estimates and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, relevant prorations as soon as reasonably possible following the Closingrelevant bills or other documentation becomes available.
(b) If ATC disputes ALLTEL's determination of prorations, ATC shall give ALLTEL written notice of such dispute within such thirty (30) day period after ATC has received the applicable proration notice, which notice of dispute shall specify in reasonable detail the basis for such dispute as well as ATC's determination of prorations. In addition If ATC does not give ALLTEL such notice of dispute within such 30-day period, ALLTEL's calculation of the prorations shall be binding and conclusive on the Parties. If the Parties are unable to resolve such dispute within thirty (30) days after such notice of dispute is given, or such longer period as the Parties may from time to time mutually agree, such dispute shall be resolved by arbitration as hereinafter provided. Either Party may request arbitration by giving written notice thereof to the foregoing apportionmentsother party after such 30-day (or longer if mutually agreed upon) period. If, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end such notice of arbitration, the Parties cannot agree on a single impartial qualified arbitrator, such arbitrator shall be selected by the American Arbitration Association in the City of New York. The arbitrator may, but shall not be obligated to, select either ALLTEL's or ATC's determination of prorations. Arbitration proceedings shall be conducted pursuant to the rules, regulations and procedures from time to time in effect as promulgated by the American Arbitration Association. The decision of the arbitrator shall be binding and conclusive, and judgment upon the award or decision of the arbitrator may be entered in the applicable court. The Parties consent to the jurisdiction of such court and further agree that any process or notice of motion or other application to the court or a judge thereof may be served outside of the State of New York by registered mail or by personal service, provided a reasonable time for appearance is allowed. The costs and expenses of each arbitration hereunder and their apportionment between the parties shall be determined by the arbitrator in his award or decision. Within five (5) business days after the final determination of the prorations in accordance with the provisions of this Section 4.7(b), the Party owing money shall pay all such amounts owed by wire transfer of immediately available funds to such account in the United States as the other Party shall designate together with, if applicable, interest from the date any dispute was submitted to arbitration to the date of payment at a rate equal to the "Prime Rate" set forth in the "Money Rates" table of the Wall Street Journal on such date immediately prior to ------------------- payment plus two percent (2%).
(c) ALLTEL agrees, on behalf of ATC and as an administrative convenience only, to pay the Ground Rent for the payment due on the first day of the month in which following the applicable Closing Date and (i) such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder ATC shall not be concerned with any prorations that are to deemed a default hereunder, and (ii) ALLTEL shall be made after the Closing reimbursed for such initial payment by ATC pursuant to proration adjustments in accordance with this AgreementSection 4.7.
Appears in 1 contract
Prorations. 4.2.1 No later than five (5) Business Days prior to the Scheduled Closing Date, Sellers shall prepare a closing statement (the “Closing Statement”) of the prorations required by this Agreement. The following items are to be prorated, it being understood that for the purposes of prorations, Sellers shall be prorated between Buyer and Seller as of 11:59 p.m. local time deemed to be the owners of the day immediately preceding Assets prior to but not including the Closing Date and Purchaser shall be deemed to be the owner of the Assets on and following the Closing Date:
4.2.1.1 Real estate and personal property taxes and assessments, in each case, with Sellers responsible for taxes attributable to the portion of the current tax year which is prior to the Closing Date and for all prior years and Purchaser responsible for taxes attributable to the remainder of the current tax year and for all future years (which prorations shall be calculated on the basis of the actual number most recent available xxxx if the current xxxx is not available);
4.2.1.2 All rents and other payments under the Leases, including but not limited to monthly rents, fixed periodic payments, additional rent payments, utility charges, rent escalations, operating expenses, tax and insurances charges payable by Tenant, cost-of-living adjustments and other forms of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments rent (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies“Rent”). Proration of Taxes ; provided that no proration shall be based on the most recent official tax bills or notice made of valuation available for the fiscal year in any Rent which is overdue as of the Closing occurs, with due allowance to be made for the maximum available discount Date until such Rent or other exemptions revenue item is actually received, at which time it shall be prorated and paid to Purchaser or the applicable Seller in accordance with the terms of this Agreement. To the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property Purchaser receives Rents on or after the Closing Date, all of which rents, other income and expenses such payments shall be prorated as applied: (i) first toward the payment in full of any Rents due to Seller solely for Rents that were, on the Closing. Closing Date both (a) due and payable to Seller with respect to any Property, and (b) less than thirty (30) days delinquent, (ii) second, toward the payment in full of all Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer Purchaser, with respect to any Property, with respect to periods after Closing, and then(iii) thereafter, the balance applied to delinquent Rents or other amounts due to Sellers with respect to periods before Closing;
4.2.1.3 Water, electric, telephone and all other utility and fuel charges (on the basis of the number of days in each applicable xxxx occurring prior to, and on or after, the Closing Date) and fuel on hand (at cost plus sales tax); provided, however, that any deposits with utility companies shall remain the property of Sellers and shall not be prorated or credited. Notwithstanding the foregoing, at Purchaser’s sole option, Purchaser may elect to assume any deposits with utilities companies in which event Sellers shall receive a credit for such deposits at Closing (to be paid to one or more Sellers in accordance with written instructions from Sellers);
4.2.1.4 Amounts due and payable by Sellers under the Assumed Service Contracts and any unamortized portion of any lump sum or up-front payments paid by Sellers under Assumed Service Contracts;
4.2.1.5 Fees, costs and expenses payable to the extent such rents or Additional Estoppel Parties; and
4.2.1.6 Rents and other income relate periodic charges under Ground Leases.
4.2.2 Except with respect to: (i) general real estate and personal property taxes (which shall be reprorated as soon as practicable and in any event no later than three (3) Business Days after the issuance of the actual bills) and (ii) reconciliations for common area maintenance and similar charges pursuant to the period ending Leases (which shall be reprorated on or before April 30, 2015), any proration in the ClosingClosing Statement prepared pursuant to Section 4.2.1 shall (i) be paid on the Closing Date pursuant to Section 2.1.2 and (ii) be reprorated and finally adjusted on February 27, such rents 2015 (or other income the earliest date subsequent to which any dispute is resolved pursuant to the provisions of this Section 4.2.2); otherwise, all prorations shall be paid final, subject to Seller within ten (10) days after end the provisions governing the payment of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementdelinquent Rent under Section 4.2.1.
Appears in 1 contract
Samples: Purchase and Sale Agreement (Parkway Properties Inc)
Prorations. The following (a) Purchaser and Seller agree that, except as otherwise specifically provided in this Agreement, all of the budgeted, ordinary, and recurring items normally charged to the Facilities Owners, including those listed below and excluding Taxes (except as set forth in Section 3.6(b)), relating to the business and operation of the Assets owned by Seller, shall be prorated between Buyer and Seller charged as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on without any duplication of payment under the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occursFacilities Contracts, with due allowance to be made for the maximum available discount or other exemptions Seller liable to the extent permissible for said year, and such items relate to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or Acquired Interest and any portion of the Property) and allocable either time period prior to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, Purchaser liable to the extent such rents or other income items relate to the Acquired Interest and periods commencing with the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days):
(i) Retrospective adjustments and policyholder distributions for the applicable period ending on or before during which the Closing occurs with respect to Facilities Insurance Policies included in the Assets occurring within ninety (90) days after the year-end following the Closing, if applicable; and
(ii) Operating and maintenance expenses and Capital Expenditures incurred in any period prior to the Closing Date in the nature of the expenses shown on Schedule 3.6(a)(ii), but only to the extent that the amount of such rents or other income shall be paid to Seller expenses are determined within ten ninety (1090) days after the year end of following the month in which such amounts were collected. Buyer shall incur no obligation to Seller Closing.
(b) Any and all liability for Buyer's failure to collect such rentals any Property Tax or other income. All security and any other refundable deposits paid by tenants to Seller possessory interest Tax imposed in rem upon the Assets pursuant to tenant leases the Settlement Agreement (“PIT”) shall (x) be the responsibility of Seller to the extent attributable to a Pre-Closing Tax Period, and (y) otherwise be the responsibility of by Purchaser; provided that PIT that is attributable to a Straddle Period shall be delivered by certified funds prorated to Buyer at the Pre-Closing Tax Period on a per diem basis based upon the number of days in the Straddle Period prior to the Closing or, at Seller's option, credited to Buyer against Date and the cash portion total number of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.days in such Straddle
Appears in 1 contract
Samples: Purchase and Sale Agreement (Public Service Co of New Mexico)
Prorations. The following shall (a) Ad valorem taxes and assessments (whether for real estate or personal property) against the Property will be prorated between Buyer and Seller at Closing as of 11:59 p.m. local time the Closing Date based on the tax bills for the year of the day immediately preceding Closing. Buyer will receive at Closing a credit against the Purchase Price in an amount equal to the portion of the taxes and assessments on the Property from the beginning of the current year to the Closing Date. If Closing occurs before that year’s tax bills are available, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall proration will be based on the most recent official latest tax bills or notice rate applied to the latest unappealed tax value.
(b) All income and expenses of valuation available for the fiscal year in which Real Property (other than ad valorem taxes and assessments) will be prorated at Closing as of the Closing occursDate on an accrual basis, with due allowance to except that no proration shall be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion rents delinquent as of the Property) Closing Date. All other income and allocable either expense items subject to proration pertaining to the period before prior to the Closing or Date will be allocated to Seller and all income and expense items subject to proration pertaining to the period after starting on the Closing, then Buyer Closing Date will be allocated to Buyer. Seller is responsible for Lease commissions due Seller’s employees and Seller shall adjust locator fees for Leases under which the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition tenant moves into a unit prior to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and . Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property is responsible for locator fees for Leases under which tenant moves into a unit on or after the Closing Date. Any income payable in connection with any Service Contract will be prorated, all but no lump sum or up front payments paid to Seller with respect to any Service Contract will be prorated. Prior to the Closing Date, Buyer and Seller shall mutually approve and provide to Title Company a schedule of which rentsprorations in as complete and accurate a form as possible. No later than 90 days after Closing, other Seller and Buyer shall make appropriate post-closing adjustments to the prorations of income and expenses shall but in no event will any readjustment be prorated made after the 90th day after the Closing Date.
(c) All deposits made by tenants under the Leases as of the Closing. Rents and other incomerefundable security for rent, cleaning, pet deposits, plus interest, if any, collected required under Texas law on any of such deposits, or any other purposes and not applied by Seller will be credited against the Purchase Price and assumed by Buyer. No non-refundable deposits or fees paid by tenants shall be paid or payable to Buyer.
(d) With respect to delinquent rentals, Buyer shall make an attempt to collect the same for Seller’s benefit after the Closing in the usual course of the operation of the Property (but Purchaser shall not be required to incur any expense in such collection effort) and such collection, if any, shall be remitted to Seller promptly upon receipt by Buyer; provided Buyer’s obligation to remit such delinquent rental payments to Seller shall terminate ninety (90) days after the Closing Date. Nothing contained herein shall operate to require Buyer to institute any lawsuit or other collection procedure to collect such delinquent rentals. Seller and Buyer agree that any sums received by Buyer from any tenant owing delinquent rentals shall be applied first to any amounts due current rentals, then to delinquent rentals owing to Buyer and then, to the extent such rents or other income relate with respect to the period ending on or after Closing, and then to delinquent rentals owed to Seller with respect to the period before Closing.
(e) The obligations of Seller and Buyer under this Section 6.3 survive the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 1 contract
Prorations. The following (a) Real estate taxes on the Property shall be prorated between Seller and Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding Closing Date (with Seller to receive credit for the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official current year's taxes (taking into account the maximum allowable discount), or if unknown, based on the preceding year's taxes. At the request of either party, taxes will be reprorated when the actual tax bills or notice of valuation available bill for the fiscal year in which of Closing is available. All other expenses associxxxx with the Property will also be prorated between Seller and Buyer as of the Closing occurs, Date (with due allowance Seller to be made receive credit for the maximum Closing Date) based on available discount or information. At the request of either party, such other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect expenses will be reprorated when the actual Taxes assessed against information is available.
(b) Except where the Property (or applicable utility will close its account with Seller and open a new account with Buyer, charges for water, sewer, electricity, telephone and any portion other utilities shall be apportioned as of the Property) and allocable either Closing Date (with Seller to the period before receive credit for the Closing or to Date). In such event, Seller will furnish copies of the bills for such services for the prior billing period after and the Closingapportionment will be based on such bills. At the request of either party, then Buyer and Seller shall adjust utility charges will be reprorated when the actual Taxes between bill for the billing period including Closing is available. Buyer and Sellerwixx xurther reimburse Seller for any utility deposits received by or credited to Buyer by the applicable utility company.
(c) Current rents, outside of Escrowadvance rents, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents taxes and other income accrued, charges (including reimbursable expenses or pass through expenses) payable by tenants under the Tenant Leases and shall pay all other expenses accrued or incurred, revenue received in connection with the ownership or operation Property will be apportioned as of Property before the Closing Date (with Seller to receive credit for the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or ). Within sixty (60) days after the Closing Date, all of which Seller and Buyer will make a further adjustment for such rents, other income and expenses shall be prorated as of the Closing. Rents taxes and other income, if any, collected by Buyer after charges that may have been accrued or been incurred prior to the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents but not billed or other income relate to the period ending paid on or before the Closing.
(d) Seller agrees that during the Inspection Period, such rents it shall disclose to Buyer all Tenant Inducement Costs and Leasing Commissions payable with respect to the Tenant Leases which shall exist or other income shall be paid to Seller within ten (10) days after end pending as of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion date of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.For purposes hereof, "Tenant Inducement Costs"
Appears in 1 contract
Samples: Purchase and Sale Agreement (Windrose Medical Properties Trust)
Prorations. The following Except as otherwise provided in the Time Brokerage Agreement, all items of income and expense arising from the operation of the Station with respect to the Station Assets and the Assumed Liabilities on or before the close of business on the Time Brokerage Date shall be for the account of the Seller and thereafter shall be for the account of the Purchaser. Proration of the items described below between the Seller and the Purchaser shall be effective as of 11:59 p.m., local time, on such date and shall occur as follows with respect to those rights, liabilities and obligations of the Seller transferred to and assumed by the Purchaser hereunder and except as otherwise provided in the Time Brokerage Agreement:
(a) Liability for state and local taxes assessed on the Station Assets payable with respect to the tax year in which the Time Brokerage Date falls shall be prorated as between Buyer the Seller and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, Purchaser on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for of the tax period then in effect year elapsed to and insurance premiums including such date, appropriately adjusted with respect to improvements to the Station Assets effected by Purchaser after the Time Brokerage Date.
(but only b) Prepaid items and accruals such as fees under the Time Brokerage Agreement, water, electricity, telephone, other utility and service charges, lease expenses, license fees (if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes any) and payments under any contracts to be assumed by the Purchaser shall be based prorated between the Seller and the Purchaser on the most recent official tax bills or notice basis of valuation available for the fiscal year in period of time to which such liabilities, prepaid items and accruals apply. All prorations shall be made and paid insofar as feasible on the Closing occurs, Time Brokerage Date with due allowance a final settlement to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before on the Closing Date. The Seller and the Purchaser agree to assume, pay and Buyer shall receive perform all rents and other income accruingcosts, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date, all of which rents, other income liabilities and expenses shall be prorated as allocated to each of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing them pursuant to this AgreementSection 15.2.
Appears in 1 contract
Samples: Asset Purchase Agreement (Heftel Broadcasting Corp)
Prorations. The following shall be prorated between Buyer (a) Except as otherwise set forth herein, at and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on Purchaser and the basis Company shall proportionately allocate (i) real property taxes and assessments for each of the actual number Clubs for the current fiscal year of days elapsed during the Company if and only to the extent that the Company shall be liable for real property taxes and assessments under the applicable Real Property Lease, (ii) rents and other payments, including, without limitation, CAM changes, under the Real Property Leases paid in advance for the month in which the Closing occurs: general , (iii) utility and special county and city real property taxes and special assessments (collectively, "Taxes") sewer charges paid in advance for the tax period then month in effect which the Closing occurs and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on iv) payments under the most recent official tax bills or notice of valuation available Assumed Contracts, other than the Real Property Leases, paid in advance for the fiscal year month in which the Closing occurs, with due allowance to be made . The Company shall maintain in place all deposits under the Real Property Leases and all utilities and other deposits for the maximum available discount benefit of the Purchaser, except for the security deposit for the Real Property Lease at the Santa Monixx Xxxb, which will be remitted to the Company. Neither the Company nor SCC shall be entitled to any credit to the Purchase Price or other exemptions benefit with respect to such deposits that remain in place. In the extent permissible for said yearevent the parties are unable to proportionately allocate such amounts and other operating expenses under this Section
7. 14 1. 12, and whether paid in advance or payable subsequent to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller the parties agree to pro rate such amounts as of the Closing Date. Any party owing funds to the other party shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, remit such amounts as soon as reasonably possible following the Closing. In addition to the foregoing apportionmentspracticable, Seller shall receive all rents but in any event within 30 days after demand therefor.
(b) At and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation as of Property before the Closing Date, Purchaser and Buyer the Company shall receive all rents and other income accruing, and shall pay all other expenses accrued proportionately allocate monthly dues paid one month in advance whether or incurred, not paid at the time of Closing that relate solely to the month in connection with the ownership or operation of Property on or after which the Closing Dateshall occur. Notwithstanding anything contained herein to the contrary, all of which rents, other income and expenses there shall be prorated as no proportionate allocation of (i) any membership dues that have been paid more than one month in advance in the ClosingOrdinary Course of Business, (ii) gift certificates issued in the Ordinary Course of Business, or (iii) initiation fees paid and collected in the Ordinary Course of Business. Rents and other income, if any, Any membership dues collected by Buyer the Company from and after the Closing shall be applied first held in trust for the account of Purchaser and shall be promptly remitted to Purchaser minus any prorated amounts due to Buyer and then, owed to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of Company for the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing orshall have, at Seller's option, credited occurred as set forth in the preceding sentence. The Company shall together with the above amount provide Purchaser with an accounting of such membership dues in reasonable detail satisfactory to Buyer against the cash portion of the Purchase Price at the ClosingPurchaser. Escrow Holder shall not be concerned with any prorations that are to be made Any membership dues collected by Purchaser from and after the Closing pursuant that are owed to this Agreementthe Company shall be held in trust for the account of the Company and shall be promptly remitted to the Company minus any prorated amounts owed to Purchaser for the month in which the Closing shall have occurred. Purchaser shall together with the above amount provide the Company with an account of such Membership dues in reasonable detail satisfactory to the Company.
Appears in 1 contract
Prorations. The following (a) With respect to the Property, Seller shall be entitled to all income produced from the operation of the Property which is allocable to the period prior to Closing and shall be responsible for all expenses allocable to that period; and Buyer shall be entitled to all income and responsible for all expenses allocable to the period beginning at 12:01 A.M. on the day Closing occurs. At the Closing, all items of income and expense with respect to the Property listed below shall be prorated between Buyer in accordance with the foregoing principles and the rules for the specific items set forth hereafter; provided, that Seller shall cause the existing management contract for the Property to be terminated as of 11:59 p.m. local time of the day immediately preceding the Closing Date:
(i) Seller shall arrange for a billing under all those Service Contracts for which fees are based on usage and with utility companies for a billing for utilities, on to include all utilities or service used up to the basis day Closing occurs, and Seller shall pay the resultant bills. In the event any of the Service Contracts set forth in Schedule 4 extend over periods beyond the Closing the same shall be prorated on a per diem basis.
(ii) All real estate taxes together with installments of special assessments payable therewith attributable to the Property due and payable in the calendar year in which the Closing occurs shall be prorated as of the Closing Date. Any real estate taxes together with installments of special assessments payable therewith due and payable in any calendar year which is (A) prior to the calendar year in which Closing occurs shall be the obligation of Seller, and (B) subsequent to the calendar year in which the Closing occurs shall be the obligation of Buyer. In the event that as of the date Closing occurs the actual number tax bills for the tax year or years in question are not available then the amount of days elapsed during tax to be prorated as aforesaid shall be based upon the rates, millages and assessed valuation of the previous year, with known changes. With respect to any assessments which can be paid in installments, Seller shall only be responsible for installments which are payable on or before the Closing Date. Seller shall receive credit for any previously paid or prepaid taxes attributable to periods from and after the date of Closing.
(iii) Gas, water, electricity, heat, fuel, sewer and other utilities charges, and annual fees for governmental licenses, permits and inspections relating to the Property, shall be prorated on a per diem basis.
(iv) Rent under the Leases shall be apportioned as of the Closing Date to the extent such rent has actually been collected as of such date. With respect to any rent arrearages arising under the Leases for the period prior to the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if after Closing Buyer shall pay to Seller any rent actually collected which is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either applicable to the period before preceding the Closing or Date; provided, however, that all rent collected by Buyer shall be applied first to the period all unpaid rent accruing after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and then to unpaid rent accruing prior to the Closing Date.
(v) Where the Leases contain tenant obligations for taxes, common area expenses, operating expenses or additional charges of any other income accruingnature (“Expense Reimbursements”), and where Seller shall pay all other expenses accrued or incurred, have collected any portion thereof in connection with excess of amounts owed by Seller for such items for the ownership or operation of Property on or after period prior to the Closing Date, then there shall be an adjustment and credit given to Buyer on the Closing Date for such excess amounts collected. Buyer shall apply all such excess amounts to the charges owed by Buyer for such items for the period after the Closing Date and, if required by the Leases, shall rebate or credit the tenants with any remainder and shall indemnify, defend and hold Seller harmless with respect to such obligation of Buyer. If it is determined that the amount collected during Seller’s ownership period exceeded expenses incurred during the same period by less than the amount previously credited to Buyer, then Buyer shall promptly pay to Seller the difference. If it is determined that the amount collected during Seller’s ownership period was less than the expenses incurred by Seller during the same period, then Buyer shall promptly pay to Seller the amount of such deficiency upon collection of same from the tenants. Seller shall not receive at Closing any credit for Expense Reimbursements which have not actually been incurred by Seller and collected from the tenants. To the extent Buyer collects any Expense Reimbursements after the Closing, such amounts shall be applied by Buyer in the same order as rent is to be applied pursuant to Subsection (iv) above.
(vi) All prepaid rentals and other prepaid payments attributable to Buyer’s period of ownership, security deposits not applied against tenant’s obligations under the tenant Leases, electric, gas, sewer and water deposits deposited with Seller by tenants (including all accrued interest on all of which rentsthe foregoing, other income unless Seller is entitled to retain the benefit thereof) under any Leases, license agreements or concession agreements relating to the Property, shall all belong to Buyer and expenses all shall be prorated as of assigned and delivered to Buyer at the Closing. Rents Notwithstanding the foregoing, the amount of any security deposits received by Seller and other income, if any, collected by Buyer after not applied against tenant’s obligations under the Closing tenant Leases shall be applied first credited against the Purchase Price and Seller shall be entitled to retain such deposits. The Purchase Price shall be increased by the amount of any utility deposits paid by Seller with respect to the Property. Buyer shall indemnify, defend and hold Seller harmless with respect to any prepaid amounts due or security deposits delivered or credited to Buyer at Closing.
(b) Seller shall determine the aforesaid prorations and then, deliver such prorations to the extent such rents or other income relate to the period ending Buyer on or before the Closing, such rents or other income shall be paid to Seller within ten date that is three (103) business days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at before the Closing orDate. Upon approval by Buyer, at Seller's option, credited the parties shall deliver the approved prorations statement to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.Title
Appears in 1 contract
Samples: Purchase and Sale Agreement (Pericom Semiconductor Corp)
Prorations. The following Seller and the Assigning Subsidiaries shall bear all property and ad valorem tax liability with respect to the Purchased Assets if the lien or assessment date (the date on which the liability becomes fixed or assignable to the Purchased Assets) arises on or prior to the Cut-Off Date irrespective of the reporting and payment dates of such Taxes. Seller and the Assigning Subsidiaries shall be prorated between Buyer and Seller responsible for all other Taxes as of 11:59 p.m. levied by any foreign, federal, state or local time taxing authority in any jurisdiction with respect to the ownership, use or leasing of the day immediately preceding Purchased Assets for all periods (or portions thereof) on or prior to the Closing DateDate and Purchaser shall be responsible for all such Taxes with respect to the ownership, on the basis use or leasing of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") Purchased Assets for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property all periods (or any portion of the Propertyportions thereof) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property on or after the Closing Date. Notwithstanding the foregoing sentence, all any property and ad-valorem tax liability not subject to the first sentence of which rentsthis Section 2.5 or any sales, other income and expenses use or similar Tax liability shall be prorated allocated between the Seller and the Assigning Subsidiaries and the Purchaser and the Purchaser Affiliates as of the Cut-Off Date. All payments to be made by Seller and the Assigning Subsidiaries in accordance with this Section 2.5 shall be made, to the extent then determinable, at the Closing with such payments deposited into escrow until due, or, to the extent not determinable as of the Closing, promptly following the determination thereof, with such payments deposited into escrow pursuant to Section 2.6 until due. Rents Purchaser shall have the right of review and other income, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end approval of each member of the month in Seller Group's property Tax Returns and assessments and the right to contest any assessment for which such amounts were collectedPurchaser may be adversely affected. Buyer Seller shall incur no obligation cause each Assigning Subsidiary to Seller for Buyer's failure cooperate with Purchaser to collect such rentals or other income. All security and advance any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementcontest.
Appears in 1 contract
Prorations. The following Real property ad valorem taxes, and utility charges, if any, shall be prorated between Buyer and to the Closing, based upon actual days involved. Seller shall be responsible for all ad valorem taxes for any period prior to the Closing. All charges pursuant to any utility charges shall be determined as of 11:59 p.m. local time of the day immediately preceding prior to the Closing Date and paid by Seller. To the extent that the actual amounts of such charges, expenses, and income referred to in this Section are unavailable at the Closing Date, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes closing statements shall be based on upon estimated amounts, and a readjustment of these items shall be made within thirty (30) days after the most recent official tax bills or notice of valuation available Closing. Seller shall bear all expenses for the fiscal Closing Date. In connection with the proration of real property ad valorem taxes, if actual tax figures for the year in which of Closing are not available at the Closing occursDate, with due allowance an estimated proration of taxes shall be made using tax figures from the preceding year; however, when actual taxes for the year of Closing are available, a corrected proration of taxes shall be made. If such taxes for the year of Closing increase over those for the preceding year, Seller shall pay to Purchaser a pro-rata portion of such increase, computed to the Closing Date, and conversely, if such taxes for the year of Closing decrease from those of the preceding year, Purchaser shall pay to Seller a pro rata portion of such decrease, computed to the Closing Date, any such payment to be made for the maximum available discount within ten (10) days after notification by either party that such adjustment is necessary. Seller shall, on or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the Closing Date, furnish to Purchaser and Buyer the Title Company all information necessary to compute the prorations provided for in this Section. Except for the prorations between Purchaser and Seller as hereinabove provided, the payment of any and all assessments, special assessments, charges, levies, or taxes against the Property, shall receive all rents and other income accruing, be the sole responsibility of and shall pay all other expenses accrued or incurred, in connection with be paid by Seller if due and payable prior to the ownership or operation Closing Date and shall be the sole responsibility of Property and shall be paid by Purchaser if due and payable on or after the Closing Date, all of which rentsprovided, other income and expenses however, that Seller shall be prorated as responsible for and shall pay subsequent assessments for ad valorem taxes for years prior to the year of Closing due to change in land usage or in ownership of the Closing. Rents Property and other incomethat in the event of a breach by Seller of any of Seller's representations or warranties contained in Section 6.1 hereof, if anySeller shall be solely responsible for and shall pay any and all assessments, collected by Buyer special assessments, charges, levies, or taxes against the Property due and payable after the Closing shall be applied first Date to any amounts due to Buyer and then, which the Property was subject or which Seller knew were contemplated prior to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this AgreementDate.
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Samples: Contract of Sale (Boundless Motor Sports Racing Inc)
Prorations. The following shall be prorated between Sellers and Buyer agree that Buyer is acquiring the Partnership Interests from Sellers pursuant to this Agreement. However, at the Closing, Sellers and Seller as of 11:59 p.m. local time Buyer agree to prorate the income and expenses of the day immediately preceding Property to the Closing Datesame extent as if Buyer was acquiring the Property from the Partnership in a real property transaction, on provided that any adjustments that would be attributed to the basis Partnership, as a seller of real property, will be attributed to Sellers in the actual number of days elapsed during proration calculations.
(a) Except as otherwise specifically set forth in this Agreement, ad valorem property taxes and other revenues and expenses of, and impounds, prepayments or deposits affecting or related to, the Property (excluding insurance costs and premiums), and rent theretofore received pursuant to the Leases for the month in which the Closing occurs: general , will be prorated between Sellers and special county and city real Buyer as of the Closing Date. Ad valorem property taxes and special assessments (collectivelywill be prorated on the basis of the 2004 Trim Notice received with respect to the Real Property, "Taxes") with maximum discount allowed by law. Any Closing proration of taxes will be reprorated at the request of either party when the final actual tax bill for the tax period year of Closing is available. Special assessment liens cxxxxfied, or for which the work has been substantially completed, as of the Closing Date will be paid by Sellers. Sellers will deliver to Buyer, or Buyer will receive a credit against the Purchase Price in the amount of, any security deposits held as of Closing by Sellers pursuant to the Leases. The Sellers shall receive a credit for the amount of the Existing Loan Escrow.
(b) Notwithstanding anything contained above to the contrary, Sellers and Buyer agree that all rents received after Closing will be applied first to rentals then currently due, and any rent received in effect excess of the rents or other charges then currently due (net of costs of collection, if any) will be applied on account of delinquencies in the order of occurrence. In the event that after Closing Buyer receives (a) rental payments applicable in part to the month in which Closing occurs, or (b) other payments in excess of the rents then due, Sellers' portion thereof, less Sellers' pro rata portion of any costs of collection, will be remitted promptly by Buyer to Sellers. Sellers may pursue the collection of any past due rents directly against Tenants who are no longer in possession after Closing, and insurance premiums Buyer will cooperate at no cost to it with Sellers in connection therewith.
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(d) Buyer will be responsible for the payment of (i) all Tenant Inducement Costs and leasing commissions which become due and payable (whether before or after Closing) (A) as a result of any renewals or modifications of existing Leases between the Agreement Date and the Inspection Termination Date, (B) under any new Leases, approved or deemed approved in accordance with SECTION 7.2(B) hereof, entered into between the Inspection Termination Date and the date of Closing, or entered into by Buyer after the Closing. Sellers shall receive a credit for all Tenant Inducement Costs and leasing commissions to the extent paid by Sellers or Partnership prior to Closing with respect to the Leases described in the immediately preceding sentence equal to the amount, if Buyer any, determined by multiplying (i) all amounts paid by the Partnership for Tenant Inducement Costs with respect to such Leases, and (ii) a fraction the numerator of which is assuming Seller's insurance policy or policies)the number of days in the lease term after the Closing Date and the denominator of which is the total number of days in the lease term. Proration If the Tenant Inducement Costs are attributable to an expansion, the proration of Taxes such costs shall be based on upon the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion lease term of the Property) and allocable either to the period before the Closing or to the period after the Closing, then expansion space. The Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other Tenant Inducement Costs and leasing commissions due to the existing Leases which become due and payable from and after the date of Closing. The Buyer shall receive a credit for all Tenant Inducement Costs and leasing commissions with respect to existing Leases if such costs have not been paid at Closing. With respect to any unpaid Tenant Inducement Costs and leasing commissions for which Buyer is obligated hereunder, Buyer will expressly assume those obligations and indemnify and hold Sellers harmless with respect thereto pursuant to an assumption and indemnity agreement in form and substance reasonably satisfactory to Sellers and Buyer.
(e) In the event that, as of Closing, Sellers and Buyer are unable to make an exact determination of any items of income and expense (including, without limitation, rents and annual operating expenses accrued or incurred, in connection with subject to reimbursement by Tenants under the ownership or operation Leases (the "CAM CHARGES") to be adjusted as of Property before the Closing Date), Sellers and Buyer shall receive all rents will cooperate for sixty (60) days after the Closing Date to make such final determinations (except for the bill for real estate taxes and other income accruingfinal determination of CAM Charges, and shall pay all other expenses accrued whxxx may not be available within such sixty (60) day period). On or incurred, in connection with before the ownership or operation of Property on or sixtieth (60th) day after the Closing Date, all Sellers and Buyer will complete the calculation of any sums not adjusted at Closing (other than taxes and CAM Charges), and the party from whom any net payment is due will promptly remit the sum due in immediately available funds. Promptly after the actual ad valorem real property taxes due for the year of Closing are determinable, any estimated tax proration made at Closing will be reprorated as set forth above. Further, promptly after the final accounting has been made with respect to actual CAM Charges for the year in which rents, other income and expenses shall be prorated as of the Closing. Rents and other incomeClosing occurs has been completed, if anythe total CAM Charges due from Tenants exceeds the amount actually collected from Tenants for such year, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end of the month in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure will make a diligent good faith to collect from each Tenant the amount of such rentals or other income. All security and any other refundable deposits paid by tenants to Seller excess payable pursuant to tenant leases shall be delivered by certified funds its Lease, and promptly upon receipt thereof will remit to Buyer at Sellers the Closing or, at Seller's option, credited to Buyer against the cash portion pro rata share of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementeach "catch up" payment.
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Samples: Agreement of Sale of Partnership Interests (CRT Properties Inc)