Repair and Replacement Fund Sample Clauses
The Repair and Replacement Fund clause establishes a dedicated reserve of money set aside for the ongoing repair and replacement of property components, such as building systems, equipment, or common areas. Typically, this fund is maintained by regular contributions from tenants, owners, or association members, and is used to cover costs that arise from wear and tear or unexpected breakdowns. Its core practical function is to ensure that sufficient resources are available to address maintenance needs promptly, thereby preventing deferred maintenance and protecting the long-term value and functionality of the property.
Repair and Replacement Fund. The Trustee shall establish and hold the Repair and Replacement Fund for the financial benefit of the Project and shall deposit into the accounts therein such amounts specified in Section 5.4 on the Closing Date and thereafter into the Unrestricted Account thereof the amounts specified in Section 5.4 and in Section 5.7(g). Moneys deposited in the Repair and Replacement Fund shall be held therein segregated from other funds held by the Trustee until disbursed for the purposes hereafter provided. Expenditures from the Repair and Replacement Fund which are not included in the annual budget and Exhibit C of the Loan Agreement shall be subject to the Oversight Agent’s approval. Disbursements from the Restricted Account of the Repair and Replacement Fund shall be made upon the written request of the Borrower and approved in writing by the Oversight Agent solely for the purpose of funding capital improvements to the Project, including certain of the items set forth in Exhibit C to the Loan Agreement and capital improvements to the Project identified in the annual budget filed by the Borrower pursuant to the Loan Agreement, or to redeem Bonds. Disbursements from the Unrestricted Account of the Repair and Replacement Fund shall be made upon the written request of the Borrower for the purpose of effecting the remaining items set forth in Exhibit C to the Loan Agreement or for any other purpose for the benefit of the Project in accordance with the annual budget filed by the Borrower pursuant to the Loan Agreement or for such other similar purposes which the Oversight Agent shall reasonably direct, including maintenance costs, replacement of machinery and appliances and including, if necessary, making payments for debt service on the Bonds. Moneys in the Repair and Replacement Fund shall be disbursed upon the written request of the Borrower in accordance with the provisions of Section
Repair and Replacement Fund. Lessee shall maintain a Repair and Replacement Fund sufficient to cover the cost of routine and extraordinary maintenance items as well as replacement of major building systems and/or to partially defray the cost of building replacement.
Repair and Replacement Fund. (a) The Trustee shall transfer moneys to the Repair and Replacement Fund in the amount set forth in Section 5.15. Thereafter, additional transfers to the Repair and Replacement Fund shall be made as directed pursuant to a CFC Surplus Fund Disbursement Request in the form of Exhibit C hereto executed by an Authorized Representative and delivered to the Trustee from time to time in accordance with Section 5.7. Moneys credited to the Repair and Replacement Fund may be disbursed for the following purposes:
(i) payment of the costs of Major Maintenance;
(ii) to pay the principal of, redemption premium, if any, and any sinking fund requirement and interest on the Bonds on the payment date therefor if there is not sufficient money available in the Debt Service Fund, the Debt Service Reserve Fund and the Debt Service Coverage Fund for such purpose;
(iii) to restore any deficiency in the Debt Service Fund, the Debt Service Reserve Fund or the Debt Service Coverage Fund;
(iv) to make final payment for the retirement or defeasance of a series of Bonds; and
(v) for the purposes provided in subsection (b) below. With respect to the purposes described in clauses (i), (iv) and (v) above, the Trustee shall disburse amounts in the Repair and Replacement Fund within three (3) Business Days following its receipt of and in accordance with a Repair and Replacement Fund Disbursement Request in the form set forth in Exhibit D hereto executed by an Authorized Representative. No disbursement request shall be required for the Trustee to apply money in the Repair and Replacement Fund for the purposes described in clauses (ii) or (iii) above. The Trustee shall be entitled to rely upon any Repair and Replacement Fund Disbursement Request delivered by the City pursuant to this Section 5.10 in the disbursement of funds from the Repair and Replacement Fund and shall have no duty or obligation to make any investigation in connection therewith.
(b) If, at the end of any Fiscal Year following the Opening Date, all budgeted costs for Major Maintenance to be paid from the Repair and Replacement Fund for such year have been paid in full, then any amount then remaining on deposit in the Repair and Replacement Fund may be used at the discretion of the City, pursuant to a Repair and Replacement Fund Disbursement Request submitted to the Trustee, to (i) purchase, defease or retire Bonds; provided, that the Debt Service Reserve Fund and the Debt Service Coverage Fund are fully funded; (ii) expand, ...