Common use of Distribution of Net Operating Income Clause in Contracts

Distribution of Net Operating Income. Net Operating Income (as defined herein) generated by the Property shall be disbursed as follows: (i) Prior to March 1, 2001. Provided no Event of Default (as such term is defined in the Loan Documents) has occurred and is continuing, 100% of the Net Operating Income allocable to the period prior to March 1, 2001 shall be distributed to the Borrower; (ii) On and After March 1, 2001. Provided no Event of Default has occurred and is continuing, $100,000 (or such proportional amount in the event the Property is not owned by the Borrower for a full calendar year) of the Net Operating Income allocable to the period on or after March 1, 2001 shall be distributed to Borrower annually (the "Expense Distribution"), and the remaining Net Operating Income shall be paid to the Lender. The Expense Distribution shall be paid to the Borrower in equal monthly installments to the extent of available Net Operating Income commencing April 1, 2001, and each month thereafter until such time as a Release Event has occurred and the Conveyance Documents have been delivered to Lender. Net Operating Income received by the Lender shall be applied first to current interest at 11.22%, next to accrued and unpaid interest, and the remaining to principal due under the Note. After delivery of the Conveyance Documents to Lender in accordance with the terms hereof, all of Borrower's right, title and interest to the Property, including without limitation Net Operating Income, shall terminate, and all Net Operating Income thereafter shall be the property of the Lender.