Common use of Use of Income from Operations Clause in Contracts

Use of Income from Operations. Throughout the term of the LOSP Grant Agreement, the asset management fee, partnership management fee and similar fees combined (the “Asset Management Fee”), shall be $30,900 for the first Operating Year, and may increase by up to 3.5% annually, paid from Net Cash after the payment of all Operating Expenses, debt service and all Reserve Account deposits have been made per Paragraphs 20.b.1 through 20.b.6. In the event that the Grant Agreement is terminated, the Department may, in its sole discretion, reduce the amount of the Asset Management Fee, to an amount that it not less than $30,000 annually, with a 3.0% annual increase beginning in the year the Asset Management Fee is reset to $30,000. No Asset Management Fee shall be paid in any year in which there is a withdrawal from the Operating Reserve, unless such Reserve has been fully replenished. Unpaid Asset Management Fees shall no accrue. If there is any conflict between the following special conditions and the Agreement boilerplate, the language conflict will be interpreted in favor of the following special conditions. The failure to describe or enumerate all Department remedies for any defaults does not limit the Department’s use of any remedies at its disposal.