Common use of Approved Operating Expenses Clause in Contracts

Approved Operating Expenses. during a Cash Trap Period, operating expenses incurred by Borrower which (i) are within one hundred five percent (105%) of the total amounts included in the Approved Operating Budget for the current calendar month (or for unpaid operating expenses included in the Approved Operating Budget for prior calendar months); provided that, for purposes hereof, operating expenses in such Approved Operating Budget shall be deemed to be increased from the amounts in the applicable Approved Operating Budget to the extent that such increased amounts are at least equal to an increase in operating revenues from the amounts in such Approved Operating Budget or directly relate to variances in occupancy levels or emergencies or unforeseen circumstances, (ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other utility service to the Property, (iii) are for property management fees payable to Manager under the Management Agreement, such amounts not to exceed three percent (3%) of the monthly Rents (excluding however any asset management fees payable by Borrower to Manager pursuant to the Management Agreement; provided, however, the foregoing three percent (3%) limitation shall not be deemed to preclude Borrower from paying any such asset management fees pursuant to the terms of the Management Agreement from its own funds) or (iv) have been approved by Lender, acting in a commercially reasonably manner. Notwithstanding the foregoing, nothing herein shall be deemed to preclude Borrower from paying any asset management fee (over and above the amount set forth above) pursuant to the terms of the Management Agreement from its own funds.

Approved Operating Expenses. during a Cash Trap Period, operating expenses incurred by Borrower which (i) are within one hundred five percent (105%) of the total amounts included in the Approved Operating Budget for the current calendar month (or for unpaid operating expenses included in the Approved Operating Budget for prior calendar months); provided that, for purposes hereof, operating expenses in such Approved Operating Budget shall be deemed to be increased from the amounts in the applicable Approved Operating Budget to the extent that such increased amounts are at least equal to an increase in operating revenues from the amounts in such Approved Operating Budget or directly relate to variances in occupancy levels or emergencies or unforeseen circumstances, (ii) are for real estate taxes, insurance premiums, electric, gas, oil, water, sewer or other utility service to the Property, (iii) are for property management fees payable to Manager under the Management Agreement, such amounts not to exceed three percent (3%) of the monthly Rents (excluding however any asset management fees payable by Borrower to Manager pursuant to the Management Agreement; provided, however, the foregoing three percent (3%) limitation shall not be deemed to preclude Borrower from paying any such asset management fees pursuant to the terms of the Management Agreement from its their own funds) or (iv) have been approved by Lender, acting in a commercially reasonably manner. Notwithstanding the foregoing, nothing herein shall be deemed to preclude Borrower from paying any asset management fee (over and above the amount set forth above) pursuant to the terms of the Management Agreement from its their own funds.