RESERVE FOR REPLACEMENT. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Borrower shall deposit at endorsement of the Note an initial amount of $__ _, if applicable, and Borrower shall deposit a monthly amount of $__ __, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting [Insert New Project Capital Needs Assessment (PCNA) Due Date], and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting [Insert New PCNA Due Date], the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the Borrower Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. [RESERVED.] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]

Appears in 4 contracts

Samples: Healthcare Regulatory Agreement, Healthcare Regulatory Agreement, Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Borrower shall deposit at endorsement of the Supplemental Note an initial amount of $__~~ ~~________, if applicable, and Borrower shall deposit a monthly amount of $__~~ ~~________, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. This amount is in addition to the monthly Reserve for Replacement amount required by the First Mortgage Documents, creating a newly combined monthly deposit of $__________. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~20____, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~20____, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __~~ ~~________] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __~~ ~~________ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___~~ ~~_______ [Insert New FHA Project Number]. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the Borrower Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents and the First Mortgage Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. In lieu of depositing funds into the Reserve for Replacement account pursuant to this Section 13, at the option of Lender, funds required to be deposited into the Reserve for Replacement account pursuant to this Section 13 shall be deposited into the Reserve for Replacement account required and established pursuant to the First Mortgage Documents. [RESERVED.] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]

Appears in 3 contracts

Samples: Supplemental Healthcare Regulatory Agreement, Supplemental Healthcare Regulatory Agreement, Supplemental Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Borrower shall deposit at endorsement of the Supplemental Note an initial amount of $__~~ ~~________, if applicable, and Borrower shall deposit a monthly amount of $__~~ ~~________, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. This amount is in addition to the monthly Reserve for Replacement amount required by the First Mortgage Documents, creating a newly combined monthly deposit of $__________. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~20____, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~20____, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __~~ ~~________] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __~~ ~~________ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___~~ ~~_______ [Insert New FHA Project Number]. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the Borrower Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents and the First Mortgage Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. In lieu of depositing funds into the Reserve for Replacement account pursuant to this Section 13, at the option of Lender, funds required to be deposited into the Reserve for Replacement account pursuant to this Section 13 shall be deposited into the Reserve for Replacement account required and established pursuant to the First Mortgage Documents. [RESERVED.] [If a long-term debt service reserve or other reserve/escrow is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]

Appears in 2 contracts

Samples: Supplemental Healthcare Regulatory Agreement, Supplemental Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or ~~Xxxxxx~~Lxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~443,992.00, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~1,650, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~June 26, 2024, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~June 26, 2024, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Previous versions obsolete Page 10 of 33 form HUD-92466-ORCF (06/2014) (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Summit Healthcare REIT, Inc)

RESERVE FOR REPLACEMENT. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Borrower shall deposit at endorsement of the Note an initial amount of $__ _, if applicable, and Borrower shall deposit a monthly amount of $__ __, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ ~~ 20_ _ [Insert New Project Capital Needs Assessment (PCNA) Due Date], and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ ~~ 20_ _ [Insert New PCNA Due Date], the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Upon ~~Borrower’s~~ Xxxxxxxx’x’x full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. [RESERVED.] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . (b) Borrower shall deposit at endorsement of the Note an initial amount of ~~$__ ~~$ _, if applicable, and Borrower shall deposit a monthly amount of ~~$__ __~~$ , concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date], and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ ~~ [Insert New PCNA Due Date], the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: ~~__ __~~] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___~~ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ~~___ _~~_ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the Borrower Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or ~~Xxxxxx~~Lxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . (b) Borrower shall deposit at endorsement of the Note an initial amount of $_~~_ ~~_ _, if applicable, and Borrower shall deposit a monthly amount of $_~~_ ~~_ __, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~20_ _, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~20_ _, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: _~~_ ~~_ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. _~~_ ~~_ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. __~~_ ~~_ __ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Previous versions obsolete Page 10 of 33 form HUD-92466-ORCF (06/2014) (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Summit Healthcare REIT, Inc)

RESERVE FOR REPLACEMENT. a. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. approved or authorized by HUD or this Agreement. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by ~~HUD~~ HUD, and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . b. Borrower shall deposit at endorsement of the Note an initial amount of ~~$__ _~~$ , if applicable, and Borrower shall deposit a monthly amount of ~~$__ __~~$ , concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~from the date of endorsement, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten ~~years starting [Insert New PCNA Due Date]~~years, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: ~~__ __~~] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___~~ [~~Insert~~ old ~~FHA Project Number~~project number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ~~___ __~~ [~~Insert New FHA Project Number~~new project number]. .] c. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section [13. ].. d. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. [RESERVED.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or ~~Xxxxxx’s~~ Lender 's designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Previous versions obsolete Page 9 of 35 form HUD-92466-0RCF (Rev. 03/13) (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~129,800.00, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~2,417.00, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~March 18, 2023, and more frequently at HUD’s ' s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~March 18, 2023, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be ~~set~~ .set by HUD. ~~[Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable:~~ In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___ [Insert old FHA Project Number]~~ 024-43076 shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ~~___ __ [Insert New FHA Project Number].~~ 024-43104. (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s 's sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower's Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s 's full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to ~~Borrower or its designee.~~ Borrower. (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. ~~[RESERVED.] [If a long~~Previous versions obsolete Page 10 of 35 form HUD-92466-~~term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~0RCF (Rev. 03/13)

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Borrower shall deposit at endorsement of the Note an initial amount of $__ _, if applicable, and Borrower shall deposit a monthly amount of $__ __, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~20_ _, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~20_ _, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. [RESERVED.] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Previous versions obsolete Page 10 of 31 form HUD-92466-ORCF (06/2019) (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~275,781.00, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~3,996.00, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~August 14, 2028, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~August 14, 2028, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the Borrower Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Summit Healthcare REIT, Inc)

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or ~~Xxxxxx’s~~ Lxxxxx 's designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Previous versions obsolete Page 9 of 35 form HUD-92466-0RCF (Rev. 03/13) (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~129,800.00, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~2,417.00, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~March 18, 2023, and more frequently at HUD’s ' s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~March 18, 2023, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be ~~set~~ .set by HUD. ~~[Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable:~~ In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___ [Insert old FHA Project Number]~~ 024-43076 shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ~~___ __ [Insert New FHA Project Number].~~ 024-43104. (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s 's sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower's Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s 's full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to ~~Borrower or its designee.~~ Borrower. (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. ~~[RESERVED.] [If a long~~Previous versions obsolete Page 10 of 35 form HUD-92466-~~term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~0RCF (Rev. 03/13)

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Summit Healthcare REIT, Inc)

RESERVE FOR REPLACEMENT. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Borrower shall deposit at endorsement of the Supplemental Note an initial amount of $__~~ ~~________, if applicable, and Borrower shall deposit a monthly amount of $__~~ ~~________, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. This amount is in addition to the monthly Reserve for Replacement amount required by the first/original mortgage,First Mortgage Documents, creating a newly combined monthly deposit of $__________. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~20____, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~20____, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __~~ ~~________] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __~~ ~~________ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___~~ ~~_______ [Insert New FHA Project Number]. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s SecurityBorrower Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents and the First Mortgage Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. In lieu of depositing funds into the Reserve for Replacement account pursuant to this Section 13, at the option of Lender, funds required to be deposited into the Reserve for Replacement account pursuant to this Section 13 shall be deposited into the Reserve for Replacement account required and established pursuant to the First Mortgage Documents. [RESERVED.] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]

Appears in 1 contract

Samples: Supplemental Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. a. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . b. Borrower shall deposit into the Reserve for Replacement Account at endorsement of the Note an initial amount of ~~$__ _~~$ , if applicable, and Borrower shall deposit, or cause Operator to deposit a monthly amount of ~~$__ __~~$ , concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~from the date of endorsement, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten ~~years starting [Insert New PCNA Due Date]~~years, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: ~~__ __~~] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___~~ [~~Insert~~ old ~~FHA Project Number~~project number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ~~___ __~~ [~~Insert New FHA Project Number~~new project number]. .] c. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section [13. ]. d. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . e. Where the Mortgaged Property is already subject to a security instrument insured or held by HUD as of the date hereof and this Agreement is now being executed by Borrower as of the date hereof, the Reserve for Replacement now to be established shall be equal to the amount due to be in such account under this Agreement, and payments hereunder shall begin with the first payment due on the Borrower’s Note after acquisition, unless some other method of establishing and maintaining the account is approved in writing by HUD. f. Upon Borrower’s full satisfaction of all ~~of its obligations~~ Lender and HUD obligations, Borrower (or Operator, if so required under the ~~Loan Documents,~~ Borrower-Operator Agreement) shall receive any monies remaining in the Reserve for ~~Replacement account shall be released to Borrower or its designee.~~ Replacement. g. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be ~~repaid~~ refundedrepaid to the Reserve for Replacement ~~by Borrower~~ pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify ~~repayment~~ specific refundingrepayment requirements, Borrower shall ~~repay~~ refundrepay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any ~~repayment~~ refundingrepayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately ~~repay the full amount of~~ refundrepay such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or ~~Xxxxxx~~Lxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Previous versions obsolete Page 9 of 35 form HUD-92466-ORCF (06/2014) (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~77,000.00, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~3,850.00, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~February 14, 2028, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~February 14, 2028, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. ~~[RESERVED.] [If a long~~Previous versions obsolete Page 10 of 35 form HUD-92466-~~term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~ORCF (06/2014)

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Summit Healthcare REIT, Inc)

RESERVE FOR REPLACEMENT. a. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . b. Borrower shall deposit at endorsement of the Note an initial amount of $__ _, if applicable, and Borrower shall deposit a monthly amount of $__ __, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting [Insert New Project Capital Needs Assessment (PCNA) Due Date], and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting [Insert New PCNA Due Date], the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. of c. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section [13. ]. d. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . e. Where the Mortgaged Property is already subject to a security instrument insured or held by HUD as of the date hereof and this Agreement is now being executed by Borrower as of the date hereof, the Reserve for Replacement now to be established shall be equal to the amount due to be in such account under this Agreement, and payments hereunder shall begin with the first payment due on the Borrower’s Note after acquisition, unless some other method of establishing and maintaining the account is approved in writing by HUD. f. Upon ~~Borrower~~Xxxxxxxx’s full satisfaction of all ~~of its obligations under the Loan Documents~~Lender and HUD obligations, Borrower shall receive any monies remaining in the Reserve for ~~Replacement account shall be released to Borrower or its designee.~~ Replacement. g. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be ~~repaid~~ refunded to the Reserve for Replacement ~~by Borrower~~ pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify ~~repayment~~ specific refunding requirements, Borrower shall ~~repay~~ refund the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any ~~repayment~~ refunding installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately ~~repay the full amount of~~ refund such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. a. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project and for other purposes permitted under Program Obligations or ~~for any other purpose~~approved by HUD. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . b. Borrower shall deposit at endorsement of the Note an initial amount of ~~$__ _~~$ , if applicable, and Borrower shall deposit a monthly amount of ~~$__ __~~$ , concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~from the date of endorsement or such other date as may have been specified in the Firm Commitment, and more frequently at HUD’s discretion, ~~Borrower~~ Xxxxxxxx shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten ~~years starting [Insert New PCNA Due Date]~~years, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for ~~Replacements~~Replacement. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: ~~__ __~~] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___~~ [~~Insert~~ old ~~FHA Project Number~~project number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ~~___ __~~ [~~Insert New FHA Project Number~~new project number]. .] c. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section [13. ]. d. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Security ~~Instrument~~ Instrument, pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . e. Upon ~~Borrower~~Xxxxxxxx’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement ~~account~~ shall be released to ~~Borrower or its designee.~~ Borrower. f. Borrower may, only with the advance written approval of HUD, ~~borrow~~ withdraw funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. ~~Such funds~~ The amount of such withdrawals shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to ~~the making of~~ such ~~loan~~withdrawal. To the extent HUD does not specify specific repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If ~~Borrower~~ Xxxxxxxx fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full unpaid amount of all such ~~loan~~ withdrawals from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Borrower shall deposit at endorsement of the Note an initial amount of $__~~ ~~___, if applicable, and Borrower shall deposit a monthly amount of $__~~ ~~____, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~from the date of endorsement, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten ~~years starting [Insert New PCNA Due Date]~~years, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __~~ ~~_________] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __~~ ~~___________ [~~Insert~~ old ~~FHA Project Number~~project number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___~~ ~~_______ [~~Insert New FHA Project Number~~new project number]. .] Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section [13]. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Where the Mortgaged Property is already subject to a security instrument insured or held by HUD as of the date hereof and this Agreement is now being executed by Borrower as of the date hereof, the Reserve for Replacement now to be established shall be equal to the amount due to be in such account under this Agreement, and payments hereunder shall begin with the first payment due on the Borrower’s Note after acquisition, unless some other method of establishing and maintaining the account is approved in writing by HUD. Upon ~~Borrower~~Xxxxxxxx’s full satisfaction of all ~~of its obligations under the Loan Documents~~Lender and HUD obligations, Borrower shall receive any monies remaining in the Reserve for ~~Replacement account shall be released to Borrower or its designee~~Replacement. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be ~~repaid~~ refunded to the Reserve for Replacement ~~by Borrower~~ pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify ~~repayment~~ specific refunding requirements, Borrower shall ~~repay~~ refund the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any ~~repayment~~ refunding installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately ~~repay the full amount of~~ refund such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~247,500.00, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~5,528.00, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~November 21, 2023, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~November 21, 2023, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as {1020/124/00093614.2} Previous versions obsolete Page 10 of 36 form HUD-92466-ORCF (Rev. 06/2014) may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Adcare Health Systems, Inc)

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~240,000.00, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~5,333.00, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~November 1, 2023, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~November 1, 2023, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated {1020/125/00094150.4} Previous versions obsolete Page 10# of 35 form HUD-92466-ORCF (06/2014) or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Adcare Health Systems, Inc)

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~133,823.32, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~4,769.00, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment~~ ten (~~PCNA~~10) ~~Due Date]~~years after the date of endorsement of the Note, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~ten (10) years after the date of endorsement of the Note, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Previous versions obsolete Page 9 of 29 form HUD-92466-ORCF (Rev. 06/2014) (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Adcare Health Systems, Inc)

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . (b) Borrower shall deposit at endorsement of the Supplemental Note an initial amount of ~~$__ _~~$ , if applicable, and Borrower shall deposit a monthly amount of ~~$__ __~~$ , concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. This amount is in addition to the monthly Reserve for Replacement amount required by the First Mortgage Documents, creating a newly combined monthly deposit of $ . At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~20 , and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~20 , the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: ~~__ __~~] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___~~ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ~~___ __~~ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. . (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the Borrower Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents and the First Mortgage Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required~~ (g) In lieu of depositing funds into the Reserve for Replacement account pursuant to this Section 13, ~~insert deal-specific provisions in accordance with Program Obligations~~ at the option of Lender, funds required to be deposited into the Reserve for Replacement account pursuant to this Section 13 shall be deposited into the Reserve for Replacement account required and established pursuant to the ~~Firm Commitment~~First Mortgage Documents.]

Appears in 1 contract

Samples: Supplemental Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. Borrower shall deposit at endorsement of the Note an initial amount of $__~~ ~~________, if applicable, and Borrower shall deposit a monthly amount of $__~~ ~~________, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~20____, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~20____, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __~~ ~~________] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __~~ ~~________ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___~~ ~~_______ [Insert New FHA Project Number]. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. Upon ~~Borrower~~Xxxxxxxx’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to ~~Borrower or its designee~~Borrower. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. [RESERVED.] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. 328 (a) Borrower shall establish and maintain a Reserve for Replacement account 329 for defraying certain costs for replacing major structural elements and mechanical equipment of 330 the Project or for any other purpose. The Reserve for Replacement shall be deposited with 331 Lender or in a safe and responsible depository designated by Lender in accordance with Program 332 Obligations. Such funds shall at all times remain under the control of Lender or ~~Xxxxxx~~Lender’s 333 designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed 334 as to principal by, the United States of America or in such other investments as may be allowed 335 by HUD and shall be held in accounts insured or guaranteed by a federal agency and in 336 accordance with Program Obligations. 337 (b) Borrower shall deposit at endorsement of the Supplemental Note an initial 338 amount of ~~$__ _~~$ , if applicable, and Borrower shall deposit a monthly amount of ~~$__ __~~339 $ , concurrently with the beginning of payments towards amortization of the Note 340 unless a different date or amount is established by HUD. This amount is in addition to the 341 monthly Reserve for Replacement amount required by the First Mortgage Documents, creating a 342 newly combined monthly deposit of $ . At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~20 , 343 and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its 344 use of the Reserve for Replacement during the prior ten years and the projected use of the 345 Reserve for Replacement funds during the coming ten years in accordance with Program 346 Obligations. The amount of the monthly deposit may be increased or decreased from time to 347 time at the written direction of HUD without a recorded amendment to this Agreement. In 348 connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~20_ , the Lender shall obtain a physical and 349 capital needs assessment report for HUD to evaluate. The cost of such report may be paid from 350 the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a 351 minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The 352 amount of such required minimum balance is: ~~__ __~~] [Insert the following sentence, if 353 applicable: In addition to the required monthly deposits to the said reserve fund, the balance in 354 the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___~~ 355 [Insert old FHA Project Number] shall be transferred to the replacement reserve 356 fund to be established pursuant to this Agreement under FHA Project No. ~~___ _~~_ [Insert 357 New FHA Project Number]. 358 (c) Borrower shall carry the balance in this account on the financial records as 359 a restricted asset. The Reserve for Replacement shall be invested in accordance with Program 360 Obligations, and any interest earned on the investment shall be deposited in the Reserve for 361 Replacement for use by the Project in accordance with this Section 13. 362 (d) Disbursements from such account shall only be made after consent, in 363 writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a 364 notification of default under the terms of the Borrower Security Instrument pursuant to which the 365 Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of 366 this Agreement, or at such other times as determined solely by HUD, HUD may direct the 367 application of the balance in such account to the amount due on the Indebtedness as accelerated 368 or for such other purposes as may be determined solely by HUD. Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds. [RESERVED.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Supplemental Healthcare Regulatory Agreement

RESERVE FOR REPLACEMENT. (a) Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or ~~Xxxxxx~~Lxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . (b) Borrower shall deposit at endorsement of the Note an initial amount of $~~__ _~~221,952.83, if applicable, and Borrower shall deposit a monthly amount of $~~__ __~~2,917, concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~April 27, 2025, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten years starting ~~ [Insert New PCNA Due Date]~~April 27, 2025, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: __ __] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. __ ___ [Insert old FHA Project Number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ___ __ [Insert New FHA Project Number]. . (c) Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section 13. Previous versions obsolete Page 10 of 32 form HUD-92466-ORCF (06/2014) (d) Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . (e) Upon Borrower’s full satisfaction of all of its obligations under the Loan Documents, any monies remaining in the Reserve for Replacement account shall be released to Borrower or its designee. . (f) Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement by Borrower pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay the full amount of such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement (Summit Healthcare REIT, Inc)

RESERVE FOR REPLACEMENT. a. Borrower shall establish and maintain a Reserve for Replacement account for defraying certain costs for replacing major structural elements and mechanical equipment of the Project or for any other purpose. The Reserve for Replacement shall be deposited with Lender or in a safe and responsible depository designated by Lender in accordance with Program Obligations. Such funds shall at all times remain under the control of Lender or Xxxxxx’s designee, whether in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America or in such other investments as may be allowed by HUD and shall be held in accounts insured or guaranteed by a federal agency and in accordance with Program Obligations. . b. Borrower shall deposit into the Reserve for Replacement Account at endorsement of the Note an initial amount of ~~$__ _~~$ , if applicable, and Borrower shall deposit, or cause Operator to deposit a monthly amount of ~~$__ __~~$ , concurrently with the beginning of payments towards amortization of the Note unless a different date or amount is established by HUD. At least every ten years, starting ~~ [Insert New Project Capital Needs Assessment (PCNA) Due Date]~~from the date of endorsement, and more frequently at HUD’s discretion, Borrower shall submit to HUD a written analysis of its use of the Reserve for Replacement during the prior ten years and the projected use of the Reserve for Replacement funds during the coming ten years in accordance with Program Obligations. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD without a recorded amendment to this Agreement. In connection therewith, every ten ~~years starting [Insert New PCNA Due Date]~~years, the Lender shall obtain a physical and capital needs assessment report for HUD to evaluate. The cost of such report may be paid from the Reserve for Replacements. HUD may, in its sole discretion, require Borrower to maintain a minimum balance in the account, in an amount to be set by HUD. [Insert if applicable: The amount of such required minimum balance is: ~~__ __~~] [Insert the following sentence, if applicable: In addition to the required monthly deposits to the said reserve fund, the balance in the replacement reserve fund existing with respect to the Project under FHA Project No. ~~__ ___~~ [~~Insert~~ old ~~FHA Project Number~~project number] shall be transferred to the replacement reserve fund to be established pursuant to this Agreement under FHA Project No. ~~___ __~~ [~~Insert New FHA Project Number~~new project number]. .] c. Borrower shall carry the balance in this account on the financial records as a restricted asset. The Reserve for Replacement shall be invested in accordance with Program Obligations, and any interest earned on the investment shall be deposited in the Reserve for Replacement for use by the Project in accordance with this Section [13. ]. d. Disbursements from such account shall only be made after consent, in writing, of HUD, which may be given or withheld in HUD’s sole discretion. In the event of a notification of default under the terms of the ~~Borrower~~ Borrower’s Security Instrument pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement, or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. . e. Where the Mortgaged Property is already subject to a security instrument insured or held by HUD as of the date hereof and this Agreement is now being executed by Borrower as of the date hereof, the Reserve for Replacement now to be established shall be equal to the amount due to be in such account under this Agreement, and payments hereunder shall begin with the first payment due on the Borrower’s Note after acquisition, unless some other method of establishing and maintaining the account is approved in writing by HUD. f. Upon Borrower’s full satisfaction of all ~~of its obligations~~ Lender and HUD obligations, Borrower (or Operator, if so required under the ~~Loan Documents,~~ Borrower-Operator Agreement) shall receive any monies remaining in the Reserve for ~~Replacement account shall be released to Borrower or its designee.~~ Replacement. g. Borrower may, only with the advance written approval of HUD, borrow funds from the Reserve for Replacement for Reasonable Operating Expenses as provided in Program Obligations. Such funds shall be repaid to the Reserve for Replacement ~~by Borrower~~ pursuant to the terms approved by HUD prior to the making of such loan. To the extent HUD does not specify specific repayment requirements, Borrower shall repay the Reserve for Replacement in full within thirty (30) days of the approved withdrawal. If Borrower fails to timely make any repayment installment pursuant to the terms approved by HUD, upon notice from HUD, Borrower shall immediately repay ~~the full amount of~~ such loan from non-Project funds~~. [RESERVED~~.~~] [If a long-term debt service reserve is required, insert deal-specific provisions in accordance with Program Obligations and the Firm Commitment.]~~

Appears in 1 contract

Samples: Healthcare Regulatory Agreement

Common use of RESERVE FOR REPLACEMENT Clause in Contracts