Operating Deficit Guaranty definition

Operating Deficit Guaranty means the Operating Deficit Guaranty, dated as of the date hereof, from Guarantor for the benefit of ▇▇▇▇▇▇▇ Mac, as amended, supplemented or restated.

Split View

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Get StartedSchedule a Demo

Operating Deficit Guaranty has the meaning set forth in Section 6.9(b) of this Agreement. "Operating Deficit Loan" has the meaning set forth in Section 6.9(b) of this Agreement. "Operating Reserve" has the meaning set forth in Section 6.15(a) of this Agreement. "Owner's Title Policy" has the meaning set forth in Section 4.1(d) of this Agreement. "Partner" means any General Partner and any Limited Partner.

Operating Deficit Guaranty. The Operating Deficit Guaranty dated the date hereof made by Guarantor in favor of Agent, for the ratable benefit of the Lenders.

Examples of Operating Deficit Guaranty in a sentence

• The form of the Operating Deficit Guaranty is attached hereto as Exhibit B-3-Operating Deficit Guaranty.

• Each Guarantor hereby covenants and agrees solidarily to advance, on the terms set forth below, the funds required to fund any and all Operating Deficits incurred by the Borrower during the Operating Deficit Guaranty Period, within 120 days following the end of each fiscal year during the Operating Deficit Guaranty Period.

• Each accepted Guarantor will be required under the terms and conditions contained in the Operating Deficit Guaranty to fund annual operating deficits until the Project has generated Surplus Cash for two (2) consecutive fiscal years.

• Annual operating deficits shall be funded by the Guarantors under the Operating Deficit Guaranty on or before the date on which annual audited financial statements for the Project are due to Grantee under Section 8.9 of this Agreement.

• With the Consent of AHF, the Wichita GP may make withdrawals from the Operating Reserve solely for the purpose of paying Operating Deficits incurred by the Partnership after the Wichita GP has satisfied all of its obligations under the Operating Deficit Guaranty and the ODG Cap has been met.

• In the event of a Permitted Withdrawal, ▇▇▇▇ shall not have any obligation under the Development Deficit Guaranty or the Operating Deficit Guaranty, and ▇▇▇▇ shall be released from any obligation hereunder related to the period after his Withdrawal.

• For purposes of the Operating Deficit Guaranty, an Operating Deficit constitutes negative Surplus Cash.

• Borrowers must offer the following as guarantors under the Operating Deficit Guaranty and – for projects receiving funding during construction – under the Guaranty of Completion: Each entity that is offering a guaranty to any other party in the transaction.

• After expiration of the Operating Deficit Guaranty Period (the "ODG Date"), and provided the Wichita GP is not in default under this Agreement that has not been cured or the Project Documents and the Guarantors are not in default under the Guaranty that has not been cured, the Wichita GP or Guarantors may submit a written request to AHF for a change in the Guarantors for obligations occurring after the ODG Date ("Change in Guarantors Date").

• Provided, however, if a Key Principal is an organization exempt from payment of federal income tax under Section 501(a) of the Internal Revenue Code of 1986, as amended (“Code”), as an entity organized under Section 501(c)(3) of the Code, the Key Principal’s obligations under any Operating Deficit Guaranty shall (i) not extend more than five (5) years from the date that the Project first achieves “break-even operations”, and (ii) be capped at an amount equal to “six (6) months” of operating expenses.

More Definitions of Operating Deficit Guaranty

Operating Deficit Guaranty. The General Partner shall be obligated for a period of five years beginning on Permanent Mortgage Commencement to advance funds necessary to meet cash operating expenses which exceed cash operating income.

Operating Deficit Guaranty. The General Partners shall be obligated to make Subordinated Loans to the Partner- ship to cover debt service, operating expenses and the Replacement Reserve Fund to the extent these exceed available operating income.

Operating Deficit Guaranty shall have the meaning given in Section 3.2(b) hereof.

Operating Deficit Guaranty means the Absolute and Unconditional Guaranty of Operating Deficits (2023A), dated as of December 1, 2023, from the Issuer Guarantors, jointly and severally, to the Issuer and the Trustee.