Capital Replacements Clause Samples
The Capital Replacements clause outlines the responsibilities and procedures for replacing major building components or systems that have reached the end of their useful life. Typically, this clause specifies which party—such as the landlord or tenant—is responsible for funding and carrying out replacements of items like roofs, HVAC systems, or elevators. By clearly allocating responsibility for these significant expenditures, the clause helps prevent disputes and ensures that the property remains in good condition over time.
Capital Replacements acquisition, installation, and replacement of (i) FF&E, and (ii) capital items as required to maintain the Hotel and comply with Brand Standards.
Capital Replacements. The cost of all Capital Replacements in an Approved Budget shall be funded by Owner. Funding will be made by Owner from time to time, after receipt by Owner of such information from Manager regarding the acquisition, initiation or implementation of any Capital Replacements and the progress and performance thereof as Owner may reasonably require.
Capital Replacements. Subject any limitations pursuant to the Bank Loan Documents, MBPI shall effect and expend such amounts for any Capital Replacements as shall be required in the course of the operation of the Enterprise, to maintain at a minimum, the Enterprise in compliance with any Legal Requirements and to comply with MPM’s recommended programs for renovation, modernization and improvement intended to keep the Enterprise competitive in its market, or to correct any condition of an emergency nature, including without limitation, maintenance, replacements or repairs which are required to be effected by MBPI, which in MPM’s sole discretion requires immediate action to preserve and protect the comfort health, safety and/or welfare of the Facility’s guests or employees (an “Emergency Condition”); provided, however, that MBPI shall be under no obligation to fund Capital Replacements in an aggregate amount greater than its periodic required contributions to the Capital Replacement Reserve described in Section 4.12. MPM is authorized to take all steps and to make all expenditures from the Disbursement Account described at Section 4.17.3 (in the case of non-capitalized repairs and maintenance), or Capital Replacement Reserve, described at Section 4.12 (in the case of expenditures for Capital Replacements) as it deems necessary to repair and correct any Emergency Condition, regardless whether such provisions have been made in the Capital Budget or the Operating Budget and Annual Plan for any such expenditures; or the cost thereof may be advanced by MPM and reimbursed from future revenues. Design and installation of Capital Replacements shall be affected in a time period and subject to such conditions as the Business Board may establish to minimize interference with or disruption of ongoing operations.
Capital Replacements. The cost of all Capital Replacements in an Approved Budget shall be funded by SNH TRS. Funding will be made by SNH TRS from time to time, after receipt by SNH TRS of such information from Manager regarding the acquisition, initiation or implementation of any Capital Replacements and the progress and performance thereof as SNH TRS may reasonably require.
Capital Replacements. The substitution of any Units of Property, land or land rights constituting a part of the Four Corners Project, or of the Common Facilities or the Related Facilities which serve in connection with the Initial Four Corners Plant, for other Units of Property or land or land rights, where the substitution does not constitute an enlargement or improvement of the thing for which it is substituted, and which, in accordance with Accounting Practice, would be capitalized.
Capital Replacements. (a) Tenant has accounted for, and shall continue to account for, capital replacements in the Books and Records in accordance with the procedural requirements set forth in Section 13.7 of the Casino Operating Contract (the "Capital Replacements Account").
(b) For every month during the Term, Tenant shall add an amount that is equal to two percent (2%) of the sum of Gross Gaming Revenue during such month and Gross Non-Gaming Revenue during such month to the Capital Replacements Account. The Capital Replacements Account and the "Capital Replacements Account" defined and described in the Casino Operating Contract shall be the same account in the Books and Records and not a separate account. Any amounts shown in the Capital Replacements Account maintained pursuant to the Casino Operating Contract shall satisfy and reduce the amounts of the Capital Replacements Account required pursuant to this Section 19.7.
(c) The amounts shown in the Capital Replacements Account shall be used for the purposes of preserving, maintaining and improving the Development in a first class condition. Accordingly, capital expenditures and operating expenses made for the preservation, maintenance and/or improvement of the Development may be made from the amounts shown in the Capital Replacements Account, including 65% of the facilities payroll, and repair and maintenance budgets, which reflects the amount of such budgets that historically relate to the Leased Premises.
(d) All integrated capital projects budgeted and approved as a whole for renovation or improvement of the Development may be paid for entirely from the amounts shown in the Capital Replacements Account.
(e) Capital expenditures not related to the preservation, maintenance and/or improvement of the Development, including but not limited to, slot machines, computers, uniforms, etc., which are not included in an integrated capital project, may not be made from the amounts shown in the Capital Replacements Account.
(f) The amounts shown in the Capital Replacements Account shall be utilized for any necessary capital improvements or replacements to the Development. Any positive amount shown in the Capital Replacements Account at the close of each Fiscal Year shall be carried forward and shown in the Capital Replacements Account for the immediately succeeding Fiscal Year. If the amount of the Capital Replacements Account is insufficient to pay for a planned capital expenditure at the time such expenditure is to be made, then Te...
Capital Replacements. The Band shall effect and expend such amounts for any Capital Replacements as shall be required, in the course of the operation of the Enterprise, to maintain, at a minimum, the Enterprise in compliance with any Legal Requirements and to comply with Manager's recommended programs for renovation, modernization and improvement intended to keep the Enterprise competitive in its market; or to correct any condition of an emergency nature, including without limitation, maintenance, replacements or repairs which are required to be effected by the Band, which in Manager's sole discretion requires immediate action to preserve and protect the Facility, assure its continued operation, and/or protect the comfort, health, safety and/or welfare of the Facility's guests or employees (an "Emergency Condition"); provided, however, that the Band shall be under no obligation to fund Capital Replacements in aggregate amount greater than its periodic required contributions to the Capital Replacement Reserve described in ss.
Capital Replacements. The cost of all Capital Replacements in an Approved Budget shall be funded by SNH TRS. Funding will be made by SNH TRS from time to time, after receipt by SNH TRS of such information from Manager regarding the acquisition, initiation or implementation of any Capital Replacements and the progress and performance thereof as SNH TRS may reasonably require. In consideration of Manager’s management of Capital Replacements, SNH TRS shall pay Manager a Construction Supervision Fee for any Capital Replacements required to be made or approved by SNH TRS hereunder. Manager shall include the Construction Supervision Fee in the budget for the Capital Replacement for approval by SNH TRS. The Construction Supervision Fee will be paid monthly in arrears based on Capital Replacements made in such month.
Capital Replacements. A. An independent and segregated replacement reserve account will be created in the name of Owner (the "Capital Replacement Reserve Account'). The Capital Replacement Reserve Account will be funded by transferring on the tenth (10th) of each month a sum equal to the percentage identified on Schedule I of the Gross Revenue of the preceding month.
B. Proceeds (insurance or otherwise) received 'in reimbursement for expenditures previously charged to the Capital Replacement Reserve Account for Capital Replacements and all proceeds from the sale of any capital items determined by Manager to no longer be needed or appropriate for the operation of the Hotel or to be replaced, will be added to the Capital Replacement Reserve Account.
C. Manager will administer the Capital Replacement Reserve Account on behalf of Owner. The proceeds of the Capital Replacement Reserve Account will be applied to Capital Replacements in accordance with the Annual Plan or with the Owners approval.
Capital Replacements. The term "Capital Replacements" shall have the --------------------- meaning set forth in Section 7.8 -