Adequate Capitalization definition
Adequate Capitalization means, in respect of an Operator, such Operator (directly or through its constituent owners), immediately upon entering into the applicable Operator Ground Lease, will have equity capital invested into the applicable Component in an amount no less than ten (10%) of the value (i.e., purchase price) of the applicable Component. For the avoidance of doubt, such Operator shall have the right to acquire the applicable Component with debt financing of up to a ninety percent (90%) loan-to-value ratio. For purposes hereof, “Adequate Liquidity” shall mean, with respect to an Operator, such Operator shall have immediate access to funds (which may take the form, without limitation, of undrawn loan facilities, unfunded capital commitments of creditworthy constituent partners, shareholders or members, or lender-controlled reserves) in an amount which is no less than the lesser of (x) $2,000,000 and (y) the amount reasonably necessary to maintain the exterior of the Component and the Component’s allocable share of public areas (pursuant to the approved CAM Agreement) for the ensuing three (3) years as required under the applicable Operator Ground Lease. Authority hereby agrees and acknowledges that Related Urban Management Company, L.L.C. has sufficient experience in owning and operating similar first class improvements in a high-rise, mixed use environment in an urban core area in a major city in the United States and will have an office in Los Angeles, and is hereby approved as a Qualified Owner. Additionally, Authority hereby approves The Related Companies of California, LLC as a Qualified Owner of the Affordable Housing Units. The Authority hereby acknowledges and agrees that any subsidiary of Lessee shall be deemed a Qualified Owner.
Examples of Adequate Capitalization in a sentence
Section 3.15 Solvency; Adequate Capitalization; Ability to Pay Debts...
Solvency; Adequate Capitalization; Ability to Pay Debts............................34 Section 3.20.
Section 4.7 Solvency; Adequate Capitalization; Ability to Pay Debts .................