Release of FF&E Funds. (a) Agent shall disburse FF&E Funds (if any) only for FF&E Expenditures approved by Agent, which approval shall not be unreasonably withheld or delayed, and shall be deemed approved if contained in the Approved Annual Budget or expressly required under any applicable Franchise Agreement.
(b) Agent shall disburse to Borrower and/or Security Guarantor the FF&E Funds (or any portion thereof) upon satisfaction by Borrower of each of the following conditions:
(i) Borrower shall submit a request for payment to Agent at least ten (10) days prior to the date on which Borrower requests such payment be made and specifies the FF&E Expenditures to be paid, (ii) on the date such request is received by Agent and on the date such payment is to be made, no Event of Default shall exist and remain uncured, (iii) Agent shall have received a certificate from Borrower (A) stating that the items to be funded by the requested disbursement are FF&E Expenditures, (B) stating that all FF&E Expenditures at the applicable Individual Property to be funded by the requested disbursement have been completed (or the portion of such FF&E Work for which such disbursement is being requested has been completed) in a good and workmanlike manner, in accordance with all applicable Legal Requirements and, if applicable, the Franchise Agreement, (C) identifying each contractor or materialman invoice that is being paid in connection with the FF&E Expenditures to be funded by the requested disbursement, and (D) stating that the FF&E Expenditures have been paid in full or will be paid in full upon such disbursement, and (iv) at Agent’s option, if the FF&E Expenditure involves either an alteration to any structural components of the applicable Individual Property or any capital improvements to the applicable individual property, in each case in excess of $250,000, Agent shall have received a report satisfactory to Agent in its reasonable discretion, from an architect or engineer that is certified in the applicable jurisdiction and reasonably approved by Agent, in respect of such structural or capital improvement portions of the FF&E Expenditures for which the disbursement is being requested, and (vi) Agent shall have received such other evidence as Agent shall reasonably request that the FF&E Expenditures at the applicable Individual Property to be funded by the requested disbursement have been completed (or the portion of the FF&E Work for which the disbursement is being requested has been completed)...
Release of FF&E Funds. (a) Lender shall, or shall direct Servicer to, disburse the FF&E Funds to Borrower out of the FF&E Account provided (i) such disbursement is for (A) FF&E Work incurred in connection with an Approved FF&E Expense or (B) PIP Alterations contemplated by the applicable PIP Plans and (ii) Borrower shall have satisfied each of the Reserve Disbursement Conditions with respect to each such disbursement. Lender shall not be required to disburse FF&E Funds more frequently than once each calendar month, and each disbursement of FF&E Funds must be in an amount not less than the Minimum Disbursement Amount (or a lesser amount if the total amount of FF&E Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the account shall be made). Lender shall not be obligated to make disbursements of FF&E Funds to reimburse Borrower for the costs of routine maintenance to the Property, replacements of inventory or for costs which are to be reimbursed from the Required Repair Funds.
(b) Nothing in this Section 6.5.2 shall (i) make Lender responsible for performing or completing any FF&E Work; (ii) require Lender to expend funds in addition to the FF&E Funds to complete any FF&E Work; (iii) obligate Lender to proceed with any FF&E Work; or (iv) obligate Lender to demand from Borrower additional sums to complete any FF&E Work.
(c) Borrower shall permit Lender and Lender’s agents and representatives (including Lender’s engineer, architect or inspector) or third parties to enter onto the Property during normal business hours (subject to the rights of Tenants under their Leases) to inspect the progress of any FF&E Work and all materials being used in connection therewith and to examine all plans and shop drawings relating to such FF&E Work. Borrower shall cause all contractors and subcontractors to cooperate with Lender or Lender’s representatives or such other Persons described above in connection with inspections described in Section 6.5.2(d).
(d) If a disbursement of FF&E Funds will exceed $25,000.00, Lender may require an inspection of the Property at Borrower’s expense prior to making a disbursement of FF&E Funds in order to verify completion of the FF&E Work for which reimbursement is sought. Lender may require that such inspection be conducted by an appropriate independent qualified professional selected by Lender and may require a certificate of completion by an independent qualified professional acceptable to Lender pr...
Release of FF&E Funds. (a) Lender shall, or shall direct Servicer to, disburse the FF&E Funds to Borrower out of the FF&E Account provided (i) such disbursement is for (A) FF&E Work incurred in connection with an Approved FF&E Expense or (B) PIP Alterations contemplated by the applicable PIP Plans and (ii) Borrower shall have satisfied each of the Reserve Disbursement Conditions with respect to each such disbursement. Lender shall not be required to disburse FF&E Funds more frequently than once each calendar month, and each disbursement of FF&E Funds must be in an amount not less than the Minimum Disbursement Amount (or a lesser amount if the total amount of FF&E Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the account shall be made). Lender shall not be obligated to make disbursements of FF&E Funds to reimburse Borrower for the costs of routine maintenance to the Property, replacements of inventory or for costs which are to be reimbursed from the Required Repair Funds. Any FF&E Funds remaining after the Obligations have been paid in full shall be returned to Borrower.
