Common use of Other Reserves Clause in Contracts

Other Reserves. The General Partner, on behalf of the Partnership, will deposit $100,000 of the capital contribution referenced in Section 7.2 (g) into an interest bearing Partnership account ("Operating Reserve"). Funds from the Operating Reserve can only be disbursed with the prior written approval of the General Partner and Special Limited Partner. Notwithstanding, if (a) the Partnership maintains an economic occupancy of 93% (based on the Partnership's Accountant's report approved by the Special Limited Partner) for 12 consecutive months following the funding of the Operating Reserve, and (b) no Operating Reserve funds have been utilized, then the Special Limited Partner will approve the disbursement of $50,000 ("Initial Release") of the Operating Reserve to the General Partner. In any event, the full $100,000 less funds used for project operations but including accrued interest will unconditionally be released to the General Partner at the end of 24 months from the time the capital contribution referenced in Section 7.2 (g) has been paid. Any funds not available to be disbursed to the General Partner by reason of having been used for project operations will be considered deferred development fee.