Common use of Release of Ordinary Capital Expenditure Funds Clause in Contracts

Release of Ordinary Capital Expenditure Funds. Lender shall disburse Ordinary Capital Reserve Funds with respect to a particular Property only for Capital Work with respect to such Property. Lender shall disburse to Borrower the Ordinary Capital Expenditures Funds to reimburse Borrower for the actual costs incurred in connection with Capital Work at the Properties upon satisfaction of each of the following conditions: (i) no default shall have occurred and be continuing under the Loan Documents, (ii) Borrower shall submit a request for disbursement to Lender at least ten (10) days prior to the date on which Borrower requests such disbursement be made, which request shall be accompanied by a certificate of Borrower (A) describing by category the Capital Work to be funded by the requested disbursement and the amount requested to be funded with respect to each category of Capital Work, it being agreed that the categories to be utilized in connection with such requests shall be consistent with those utilized for purposes of preparing the annual capital expenditure budgets submitted to Lender in accordance with SECTION 5.1.8(III) hereof, (B) stating that all Capital Work to be funded by the requested disbursement has been completed in good and workmanlike manner and in accordance with all legal requirements, (C) stating that each Person who has supplied materials or labor in connection with such Capital Work has been paid all sums due and owing or will be paid all such sums upon such disbursement, (D) stating that Borrower has obtained lien waiver from all Persons supplying materials or labor in connection with any Capital Work having a cost in excess of $10,000 and (iii) Lender shall have received such other evidence as Lender shall reasonably request that the Capital Work to be funded by the requested disbursement has been completed and is paid for or will be paid upon such disbursement to Borrower, it being agreed that Lender shall have the right, but not the obligation, at any time, for Capital Work having a cost in excess of $10,000, to request copies of licenses, permits or approvals, plans and specifications, contracts, invoices, lien waivers, title searches that such Capital Work has been completed and paid for. In addition, Lender shall have the right, but not the obligation, at any time to require an inspection report from Consultant with respect to any Capital Work, provided, however, that such inspection report shall not be a condition precedent to disbursement unless required by Lender and the cost of a particular item of Capital Work is in excess of $150,000. Lender shall not be required to disburse Ordinary Capital Expenditure Funds more frequently than once each calendar month or in amounts less than $25,000.

Release of Ordinary Capital Expenditure Funds. Lender shall disburse Ordinary Capital Reserve Funds with respect to a particular Property only for Capital Work with respect to such Property. Lender shall disburse to Borrower the Ordinary Capital Expenditures Funds to reimburse Borrower for the actual costs incurred in connection with Capital Work at the Properties upon satisfaction of each of the following conditions: (i) no default shall have occurred and be continuing under the Loan Documents, (ii) Borrower shall submit a request for disbursement to Lender at least ten (10) days prior to the date on which Borrower requests such disbursement be made, which request shall be accompanied by a certificate of Borrower (A) describing by category the Capital Work to be funded by the requested disbursement and the amount requested to be funded with respect to each category of Capital Work, it being agreed that the categories to be utilized in connection with such requests shall be consistent with those utilized for purposes of preparing the annual capital expenditure budgets submitted to Lender in accordance with SECTION 5.1.8(III5.1.8(iii) hereof, (B) stating that all Capital Work to be funded by the requested disbursement has been completed in good and workmanlike manner and in accordance with all legal requirements, (C) stating that each Person who has supplied materials or labor in connection with such Capital Work has been paid all sums due and owing or will be paid all such sums upon such disbursement, (D) stating that Borrower has obtained lien waiver from all Persons supplying materials or labor in connection with any Capital Work having a cost in excess of $10,000 and (iii) Lender shall have received such other evidence as Lender shall reasonably request that the Capital Work to be funded by the requested disbursement has been completed and is paid for or will be paid upon such disbursement to Borrower, it being agreed that Lender shall have the right, but not the obligation, at any time, for Capital Work having a cost in excess of $10,000, to request copies of licenses, permits or approvals, plans and specifications, contracts, invoices, lien waivers, title searches that such Capital Work has been completed and paid for. In addition, Lender shall have the right, but not the obligation, at any time to require an inspection report from Consultant with respect to any Capital Work, provided, however, that such inspection report shall not be a condition precedent to disbursement unless required by Lender and the cost of a particular item of Capital Work is in excess of $150,000. Lender shall not be required to disburse Ordinary Capital Expenditure Funds more frequently than once each calendar month or in amounts less than $25,000.