Common use of Operating Reserve Account Clause in Contracts

Operating Reserve Account. Borrower shall establish and maintain an account that is available to fund operating deficits (which is the amount by which Annual Operating Expenses exceed Gross Revenue for any period) (the "Operating Reserve Account"). Borrower shall capitalize the Operating Reserve Account with three months of Annual Operating Expenses. In no event may the amount held in the Operating Reserve Account exceed six (6) months gross rent from the Residence (as such rent may vary from time to time).

Operating Reserve Account. Borrower shall establish and maintain an account that is available to fund operating deficits (which is the amount by which Annual Operating Expenses exceed Gross Revenue for any period) (the "Operating Reserve Account"). Borrower shall capitalize and replenish the Operating Reserve Account with three months of Annual Operating Expensesin the amount required by the documents evidencing the Permanent Loan. In no event may the amount held in the Operating Reserve Account exceed six (6) months gross rent from the Residence Development (as such rent may vary from time to time).