Replacement Reserve Account. The Sponsor shall establish a replacement reserve account in accordance with UMR Section 8309. The replacement reserve account shall be funded by monthly deposits from operating income, or a combination of operating income and development sources, as indicated in the regulatory agreement. The amount of the monthly deposits may be adjusted, as determined by the Department, in its sole and absolute discretion, based on reserve studies performed by an independent third party at the Sponsor’s expense as requested by the Department or as based on other reliable indicators of future reserve needs.
Replacement Reserve Account. (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Cash Management Bank an account for the purpose of reserving amounts in respect of Capital Expenditures (the “Replacement Reserve Account”).
(b) On each Payment Date, there shall be deposited into the Replacement Reserve Account an amount equal to the Monthly Replacement Reserve Amount; or, at Borrower’s election, Borrower shall deliver to Lender a Qualified Letter of Credit or a Qualified Guaranty that shall at all times be in the amount that would be contained in the Replacement Reserve Account had Borrower made monthly deposits therein and subsequently withdrawn therefrom all amounts that would have been permitted to be withdrawn therefrom pursuant to Section 3.6(c). If Borrower satisfies its obligation under this Section 3.6(b) by providing a letter of credit which at any time ceases to be a Qualified Letter of Credit, or by providing a guaranty which at any time ceases to be a Qualified Guaranty, Borrower shall, within 10 Business Days thereafter, either (x) deliver to Lender a Qualified Letter of Credit or, if applicable, a Qualified Guaranty, in the amount required under the first sentence of this Section 3.6(b) or (y) deposit into the Replacement Reserve Account the amount that would be contained therein had Borrower made monthly deposits therein and subsequently withdrawn therefrom all amounts that would have been permitted to be withdrawn therefrom pursuant to Section 3.6(c).
(c) If Borrower satisfies its obligation under Section 3.6(b) by making deposits into the Replacement Reserve Account, then, upon the request of Borrower at any time that no Event of Default is continuing (but not more often that once per calendar month), Lender will cause disbursements to Borrower from the Replacement Reserve Account to reimburse Borrower for Capital Expenditures, or, at Borrower’s direction, to directly pay such costs; provided that
(1) Borrower shall deliver to Lender invoices evidencing incurrence of the costs as to which such disbursements are requested, and (2) Lender may condition the making of a requested disbursement on (i) reasonable evidence establishing that the requested disbursement is in respect of a Capital Expenditure; and (ii) Borrower’s receipt of partial lien releases and waivers from contractors, subcontractors and others with respect to amounts for which Borrower has previously received disbursements under this Section 3.6(c).
Replacement Reserve Account. Developer shall establish and maintain an account that is available for capital expenditures for repairs and replacement necessary to maintain the Housing Improvements in the condition required by the County Documents (the "Replacement Reserve Account"). Developer shall make annual deposits to the Replacement Reserve Account in the amounts required in the Partnership Agreement and/or the documents evidencing the Senior Loan, whichever is greater. In no event shall the annual amount deposited in the Replacement Reserve Account exceed Six Hundred Dollars ($600) per Unit, increasing by the applicable consumer price index every five (5) years, or such greater amount required in connection with the Partnership Agreement and/or the documents evidencing the Senior Loan, and approved by the County.
Replacement Reserve Account. Owner shall fund a Replacement Reserve Account with annual deposits in the first year following construction completion (which may be prorated based on the actual date of completion) equal to $250 per unit per year. In subsequent years, the deposit to the Replacement Reserve shall be increased by 3.5% annually. To the extent that other Project lenders require higher annual deposits to the Replacement Reserve Account, the 3.5% inflator will not be required so long as the total aggregate amount of annual deposits is equal to or greater than $250 per unit per year plus the 3.5% annual inflator compounded annually. Disbursements from this Replacement Reserve Account shall be for the purpose of effecting replacement of structural elements and mechanical equipment of the Project or for other similar purposes for the benefit of the Project. Prior to a Transfer Event, Owner shall submit to the City a Qualified Capital Needs Assessment. The entity which shall own the Project subsequent to the Transfer Event (the “Post Transfer Owner”) shall covenant to the City that the Post Transfer Owner (and any assignee thereof) shall: 1. Set aside at the closing of the Transfer Event adequate funds to perform the Short Term Work; 2. Perform the Short Term Work within three years from the date of the Transfer Event; 3. Make monthly deposits to reserves as are necessary to fund the Long Term Work, taking into account any balance in replacement reserve accounts upon the conclusion of the Transfer Event beyond those required by Section 1 of this clause; and 4. Complete the long term work when required, or prior thereto, pursuant to the Qualified Capital Needs Assessment. Proposed Term For purposes of this section, the following terms shall have the following meanings: 1. “Qualified Capital Needs Assessment” shall mean a capital needs assessment for the property dated within one hundred eighty (180) days of the proposed Transfer Event which is prepared by an independent third- party architect, engineer, or other qualified firm approved by the City and clearly sets forth (1) the capital needs of the Project for the next three (3) years (the “Short-Term Work”) and the projected costs thereof, and (2) the capital needs of the Project for the subsequent twelve (12) years (the “Long Term Work”) and the projected contributions to reserves that will be needed to accomplish that work. 2. “Transfer Event” shall mean (1) a transfer of the ownership of the Project, (2) the sale or assignment ...
Replacement Reserve Account. Borrower shall establish and maintain an account that is available for capital expenditures for repairs and replacement necessary to maintain the Development in the condition required by the Loan Documents (the "Replacement Reserve Account"). Borrower shall make annual deposits to the Replacement Reserve Account and replenish the Replacement Reserve Account in the amounts required in the Partnership Agreement and/or the documents evidencing the Permanent Loan, whichever is greater. In no event shall the annual amount deposited in the Replacement Reserve Account exceed Six Hundred Dollars ($600) per unit, increasing by the applicable consumer price index every five
Replacement Reserve Account. Commencing no later than the date funds are disbursed pursuant to the Loan Documents, Borrower shall establish a segregated replacement reserve account. Borrower shall make annual deposits from Operating Income to the replacement reserve account in the amount set forth in Exhibit C, unless the Department determines, in its sole discretion, that more frequent deposits are required. Borrower shall also deposit any Development funds designated for replacement reserves into this account, including those identified in Exhibit C. The amount of the minimum annual deposit may be adjusted, as determined by the Department, in its sole discretion, based on the results of reserve studies, performed by an independent third party at the Borrower’s expense as requested by the Department or as based on other reliable indicators of the need for reserve funds over time.
Replacement Reserve Account. An Eligible Account established and maintained pursuant to the terms of this Loan Agreement.
Replacement Reserve Account. Borrower shall establish and maintain an account that is available for capital expenditures for repairs and replacement necessary to maintain the Property in the condition required by the Loan Documents (the "Replacement Reserve Account"). Borrower shall make annual deposits to the Replacement Reserve Account in the amount of Six Hundred Dollars ($600). In no event shall the annual amount deposited in the Replacement Reserve Account exceed Five Thousand Dollars ($5,000) per unit, increasing by the applicable consumer price index every five (5) years, or such greater amount approved by the County.
Replacement Reserve Account. Lender may reassess its estimate of the amount necessary for the Replacement Reserve Fund from time to time, but not more frequently than 2 times in any calendar year, and may increase the monthly amounts required to be deposited into the Replacement Reserve Fund upon thirty (30) days notice to Borrower if Lender determines in its reasonable discretion that an increase is necessary to maintain the proper maintenance and operation of the Property.
Replacement Reserve Account. Agent may make disbursements from this account only with the prior written approval of HCD.
