Operating Deficit Reserve Account Sample Clauses

The Operating Deficit Reserve Account clause establishes a dedicated fund to cover shortfalls in operating expenses when revenues are insufficient. Typically, this account is funded at the outset of a project or property operation and may require periodic replenishment if the balance falls below a specified threshold. Its core practical function is to ensure financial stability by providing a safety net for ongoing operations, thereby protecting stakeholders from disruptions caused by temporary cash flow deficits.
Operating Deficit Reserve Account. The General Partner, on behalf of the Partnership, shall establish an operating reserve account and shall deposit thereinto $96,549. Funds from the operating deficit reserve will be used to fund Operating Deficits until the expiration of the Operating Deficit Guarantee Period. Withdrawals from the operating deficit reserve shall be made only with the Consent of the Special Limited Partner, which Consent shall not be unreasonably withheld.
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Operating Deficit Reserve Account. On or before the Closing Date, Borrower shall deposit, or cause to be deposited into the Operating Deficit Reserve Account an amount equal to $209,000.00. Upon completion of the improvements to the Englewood Property in connection with the Englewood Loan, Borrower shall deposit or cause to be deposited into the Operating Deficit Reserve Account an amount equal to the greater of (i) $64,000.00 or (ii) two percent (2%) of the actual construction costs of those improvements to the Englewood Property in connection with the Englewood Loan which are designated as Hard Costs in the Englewood Loan Agreement. Upon completion of the improvements to the Omaha Property in connection with the Omaha Loan, Borrower shall deposit or cause to be deposited into the Operating Deficit Reserve Account an amount equal to the greater of (i) $65,500.00 or (ii) two percent (2%) of the actual construction costs of those improvements to the Omaha Property in connection with the Omaha Loan which are designated as Hard Costs in the Omaha Loan Agreement. Borrower understands and acknowledges that, in the event Lender makes any of the Future Loans to any Future Borrower, Lender will require such Person to become a joint owner of the Operating Deficit Reserve Account and will require such Person to deposit funds into the Operating Deficit Reserve Account based on the cost of construction of the improvements in connection with such loan. The above referenced amounts are collectively referred to herein as the "Minimum Deposit". In addition to the Minimum Deposit, if Lender shall so require in its sole and absolute discretion, at any time and from time to time, Borrower shall deposit or cause to be deposited into the Operating Deficit Reserve Account an amount equal to the sum of (i) the difference between the budgeted Englewood Hard Costs minus the actual construction costs for constructing the improvements on the Englewood Property in connection with the Englewood Loan and (ii) the difference between the budgeted Omaha Hard Costs and the actual construction costs of the improvements on the Omaha Property in connection with the Omaha Loan. If at any time any of Borrower, Omaha, Englewood or any Future Borrower experiences an Operating Deficit, such Person may apply to Lender to have a portion of the proceeds of the Operating Deficit Reserve Account released for the payment of amounts owing by such Person to Lender. Such application shall be in the form of a written certificate, signed by s...
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Related to Operating Deficit Reserve Account

  • Interest Reserve Account The Certificate Administrator shall establish and maintain the Interest Reserve Account in the Certificate Administrator’s name, on behalf of the Trustee, for the benefit of the Certificateholders. The Interest Reserve Account shall be established and maintained as a non-interest bearing Eligible Account. On each Master Servicer Remittance Date occurring in January (except during a leap year) or February (commencing in 2018) (unless, in either such case, the related Distribution Date is the final Distribution Date), the Master Servicer shall remit to the Certificate Administrator for deposit into the Interest Reserve Account, in respect of all the Mortgage Loans that accrue interest on the basis of a 360-day year and the actual number of days in the related month, an amount equal to one day’s interest at the related Net Mortgage Rate on the Stated Principal Balance of each such Mortgage Loan as of the close of business on the Distribution Date in the month preceding the month in which such Master Servicer Remittance Date occurs, to the extent a Monthly Payment or P&I Advance is made in respect thereof (all amounts so deposited in any consecutive January (if applicable) and February, “Withheld Amounts”). On or prior to the Master Servicer Remittance Date in March (or February if the final Distribution Date occurs in such month) of each calendar year (commencing in 2018), the Certificate Administrator shall transfer to the Lower-Tier REMIC Distribution Account the aggregate of all Withheld Amounts on deposit in the Interest Reserve Account.

  • Capital Account Deficits Loss shall not be allocated to a Limited Partner to the extent that such allocation would cause a deficit in such Partner’s Capital Account (after reduction to reflect the items described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6)) to exceed the sum of such Partner’s shares of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain. Any Loss in excess of that limitation shall be allocated to the General Partner. After the occurrence of an allocation of Loss to the General Partner in accordance with this Section 5.01(e), to the extent permitted by Regulations Section 1.704-1(b), Profit first shall be allocated to the General Partner in an amount necessary to offset the Loss previously allocated to the General Partner under this Section 5.01(e).

  • Reserve Account Draw Amount On or before two Business Days before a Payment Date, the Servicer will calculate the Reserve Account Draw Amount for the Payment Date and will direct the Indenture Trustee to withdraw from the Reserve Account and deposit the Reserve Account Draw Amount into the Collection Account on or before the Payment Date.

  • Reserve Account (i) On the Closing Date, the Seller shall deposit the Specified Reserve Balance into the Reserve Account. Amounts held from time to time in the Reserve Account shall be held by the Trust Collateral Agent for the benefit of the Noteholders. (ii) The Seller may, from time to time after the date hereof, request each Rating Agency to approve a formula for determining the Specified Reserve Balance that is different from the formula set forth herein, which may result in a decrease in the amount of the Specified Reserve Balance or change the manner by which the Reserve Account is funded. Notwithstanding any other provision of this Agreement, if each Rating Agency then rating the Notes notifies the Seller (who shall send such notification to the Trust Collateral Agent) in writing that the use of any such new formula, and any decrease in the amount of the Specified Reserve Balance or change in the manner by which the Reserve Account is funded, will not result in the qualification, reduction or withdrawal of its then current rating of the Notes then the Specified Reserve Balance will be determined in accordance with such new formula and this Agreement will be amended to reflect such new formula without the consent of any Noteholder. (iii) On each Distribution Date, the Servicer shall instruct the Trust Collateral Agent (based on the information contained in the Servicer’s Certificate delivered on the related Determination Date) (A) if the amount on deposit in the Reserve Account (without taking into account any amount on deposit in the Reserve Account representing net investment earnings) is less than the Specified Reserve Balance, in which case the Trust Collateral Agent shall, after payment of any amounts required to be distributed pursuant to clauses (i) through (xviii) of Section 5.7(a) deposit in the Reserve Account the Reserve Account Deposit Amount pursuant to Section 5.7(a)(xix), and (B) if the amount on deposit in the Reserve Account, after giving effect to all other deposits thereto and withdrawals therefrom to be made on such Distribution Date is greater than the Specified Reserve Balance, in which case the Trust Collateral Agent shall distribute the amount of such excess as part of Available Funds on such Distribution Date. (b) On each Distribution Date, the Servicer shall instruct the Trust Collateral Agent (based on the information contained in the Servicer’s Certificate delivered on the related Determination Date) to withdraw the Reserve Account Withdrawal Amount from the Reserve Account and deposit such amounts in the Collection Account to be included as Total Available Funds for that Distribution Date. (c) Amounts properly transferred to the Certificate Distribution Account for payment to the Certificateholder pursuant to this Agreement shall not be available to the Trust Collateral Agent or the Trust for the purpose of making deposits to the Reserve Account, or making payments to the Noteholders, nor shall the Certificateholder be required to refund any amount properly received by them.

  • Reserve Account Withdrawal If the Series 2003-5 Letter of Credit Amount will be less than the Principal Deficit Amount on any Distribution Date, then, prior to 12:00 noon (New York City time) on the second Business Day prior to such Distribution Date, the Administrator shall instruct the Trustee in writing to withdraw from the Series 2003-5 Reserve Account, an amount equal to the lesser of (x) the Series 2003-5 Available Reserve Account Amount and (y) the amount by which the Principal Deficit Amount exceeds the amounts to be deposited in the Series 2003-5 Distribution Account in accordance with clauses (i) and (ii) of this Section 2.5(d) and deposit it in the Series 2003-5 Distribution Account on such Distribution Date.