Property Cash Flow Allocation Clause Samples
The Property Cash Flow Allocation clause defines how income generated from a property is distributed among stakeholders. Typically, this clause outlines the order in which revenues are applied, such as first covering operating expenses, then servicing debt, and finally distributing remaining profits to investors or owners. By establishing a clear hierarchy for the use of cash flow, this clause ensures transparency and prevents disputes over financial priorities, thereby providing a structured approach to managing and sharing property-generated income.
Property Cash Flow Allocation. (a) Notwithstanding anything stated to the contrary in this Agreement (but subject to Section 3.11(c) below), all Rents deposited into the Deposit Account during the immediately preceding Interest Period shall be applied on each Payment Date as follows in the following order of priority:
(i) First, at any time prior to the Maturity Date hereunder, to Borrower to make Permitted REIT Distributions attributable to the immediately preceding Interest Period, subject to Section 3.12 below. For so long as the Mezzanine Loan remains outstanding at any time prior to the stated maturity date of the Mezzanine Loan, notwithstanding that an Event of Default shall have occurred and be continuing, Rents deposited into the Deposit Account shall be disbursed to Borrower to make Permitted REIT Distributions to the extent that sufficient amounts are on deposit in the Deposit Account to fully fund payment of the Monthly Debt Service Payment Amount (under subsection (iv) below) and the Monthly Mezzanine Debt Service Payment Amount (under subsection (viii) below) without regard for the adequacy of all Rents then on deposit in the Deposit Account to fully fund any prior amounts described in this Section 3.11(a), subsections (ii), (iii), (v), (vi) and (vii) below. No Rents shall be disbursed to Borrower to make Permitted REIT Distributions for so long as the Mezzanine Loan remains outstanding from and after the stated maturity date of the Mezzanine Loan.
(ii) Second, (if the obligation to fund the Tax and Insurance Subaccount is no longer waived by Lender pursuant to Section 3.3 hereof) to make payments into the Tax and Insurance Subaccount as required under Section 3.3 hereof;
(iii) Third, to pay the monthly portion of the fees charged by the Deposit Bank in accordance with the Deposit Account Agreement;
(iv) Fourth, to Lender to pay the Monthly Debt Service Payment Amount due on such Payment Date (plus, if applicable, interest at the Default Rate and all other amounts, other than those described under other clauses of this Section 3.11(a), then due to Lender under the Loan Documents);
(v) Fifth, (if the obligation to fund the Capital Reserve Subaccount is no longer waived by Lender pursuant to Section 3.4 hereof) to make payments into the Capital Reserve Subaccount as required under Section 3.4 hereof;
(vi) Sixth, to make payments for Approved Operating Expenses as required under Section 3.6 hereof;
(vii) Seventh, to make payments into the Rollover Reserve Subaccount as require...
Property Cash Flow Allocation. (a) All Rents deposited into the Deposit Account during the immediately preceding Interest Period shall be applied on each Payment Date as follows in the following order of priority:
(i) First, to make payments into the Tax and Insurance Subaccount as required under SECTION 3.3 hereof;
(ii) Second, to pay the monthly portion of the fees charged by the Deposit Bank in accordance with the Deposit Account Agreement;
(iii) Third, to Lender to pay the Monthly Debt Service Payment Amount or the Monthly Interest Payment Amount, as the case may be, due on such Payment Date (plus, if applicable, interest at the Default Rate and all other amounts, other than those described under other clauses of this SECTION 3.11(A), then due to Lender under the Loan Documents);
(iv) Fourth, to make payments into the Capital Reserve Subaccount as required under SECTION 3.4 hereof;
(v) Fifth, to make payments into the Rollover Reserve Subaccount as required under SECTION 3.5(A) hereof;
(vi) Sixth, during the continuance of a Cash Trap Period, to make payments for Approved Operating Expenses as required under SECTION 3.6 hereof;
(vii) Seventh, during the continuance of a Lease Sweep Period (provided no other Cash Trap Period is then continuing), to make payments in an amount equal to all remaining Available Cash on such Payment Date into the Rollover Reserve Subaccount in accordance with SECTION 3.5(A) hereof; (viii) Eighth, during the continuance of a Cash Trap Period, to make payments in an amount equal to all remaining Available Cash on such Payment Date into the Cash Collateral Subaccount in accordance with SECTION 3.9 hereof; and
Property Cash Flow Allocation. Notwithstanding anything to the contrary contained in this Agreement or any of the other Loan Documents, after the occurrence of a Default or an Event of Default, Lender may apply any Reserve Funds, all Rents, and other proceeds of repayment in such order and in such manner as Lender will elect.
Property Cash Flow Allocation. During any Cash Management Period, all Rents deposited into the Deposit Account during the immediately preceding Interest Period shall be applied on each Payment Date as follows in the following order of priority: (i) First, to make payments into the Tax and Insurance Subaccount as required under Section 3.3; (ii) Second, to pay the monthly portion of the fees charged by the Deposit Bank in accordance with the Cash Management Agreement; (iii) Third, to Lender to pay the Monthly Debt Service Payment Amount due on such Payment Date (plus, if applicable, interest at the Default Rate and all other amounts, other than those described under other clauses of this Section 3.8(a), then due to Lender under the Loan Documents); (iv) Fourth, to Borrowers the monthly amount set forth in the Approved Budget for the following month as being necessary for payment of Approved Operating Expenses and Approved Capital Expenses at the Property for such month; (v) Fifth, after the consummation of a Securitization, to pay the pro rata portion of the expenses described in Section 9.1.4; and (vi) Lastly, to make payments in an amount equal to all remaining Available Cash on such Payment Date into the Cash Collateral Subaccount in accordance with Section 3.6.
Property Cash Flow Allocation. (a) Any Rents deposited into the Deposit Accounts during the immediately preceding Interest Period shall be applied as follows in the following order of priority: (1) First, (in the case of Impac III only) to make payments into the Ground Rent Subaccount as required under Section 3.4; (ii) Second, to make payments into the applicable Tax and Insurance Subaccount as required under Section 3.2; (1) Third, to pay the monthly portion of the fees charged by the Deposit Bank in accordance with the Deposit Account Agreements; (iv) Fourth, to Lender to pay the interest due on such Payment Date (plus, if applicable, interest at the Default Rate and all other amounts, other than those described under other clauses of this Section 3.9(a), then due to Lender under the Loan Documents); (v) Fifth, to make payments into the applicable Capital Expense and FF&E Reserve Subaccount as required under Section 3.3; (vi) Sixth, after the occurrence and during the continuance of an Event of Default, to make payments for Approved Operating Expenses as required under Section 3.5; (vii) Seventh, after the consummation of a Secondary Market Transaction, to pay the pro rata portion of the expenses described in Section 9.1.7; and (viii) Lastly, payments to the respective Borrowers of any excess amounts. Notwithstanding the foregoing, provided that in any given Interest Period, all amounts referred to in the foregoing clauses (i) - (vii) have
Property Cash Flow Allocation. (a On each Payment Date ----------------------------- during every period commencing on the occurrence of a Lockbox Event and ending on the date of the Lockbox Termination relating to such Lockbox Event, any Rents deposited into the Deposit Account during the immediately preceding calendar month shall, subject to Section 3.8 hereof, be applied as follows in the following order of priority: (i) First, to make required payments to the Tax and Insurance Escrow Fund for each of the Properties; (ii) Second, to Lender to pay the Monthly Debt Service Payment Amount (plus, if applicable, interest at the Default Rate); (iii) Third, to make required payments to the Capital Reserve Fund for each of the Properties; (iv) Fourth, to make required payments to the Rollover Reserve Fund for each of the Properties; (v) Fifth, payments for Approved Operating Expenses for each of the Properties; and (vi) Lastly, payment to Borrower of any excess amounts.
Property Cash Flow Allocation. (a) During a Cash Management Period, any Rents deposited into the Deposit Account up to and including the Business Day prior to a Payment Date shall be applied on such Payment Date as follows in the following order of priority: (i) First, to make payments into the Tax and Insurance Subaccount as required under Section 3.3; (ii) Second, to pay the monthly portion of the fees charged by the Deposit Bank in accordance with the Deposit Account Agreement, (iii) Third, to Lender to pay the Monthly Debt Service Payment Amount due on such Payment Date (plus, if applicable, interest at the Default Rate and all other amounts, other than those described under other clauses of this Section 3.10(a), then due to Lender under the Loan Documents), which payments shall be made into a Subaccount (the “Monthly Debt Service Subaccount”) to be established for such purpose under the Deposit Account
Property Cash Flow Allocation. (a) Borrower shall cause Mortgage Borrower to comply with all of the terms and conditions set forth in Section 3.10 of the Mortgage Loan Agreement.
(b) All transfers of funds from the Deposit Account or other sources to or for the benefit of Lender or Borrower pursuant to this Agreement, the Mortgage Loan Documents or any of the other Loan Documents in which Mortgage Borrower has an interest in, are intended by Borrower and Mortgage Borrower to constitute and shall constitute distributions from Mortgage Borrower to Borrower of such funds.
Property Cash Flow Allocation. Notwithstanding anything to the contrary contained in this Article 6, upon the occurrence of an Event of Default, Lender, at its option, may withdraw the Reserve Funds and any other funds of Borrowers then in the possession of Lender, Servicer or Deposit Bank (including any Gross Revenue) and apply such funds to the items for which the Reserve Funds were established or to the payment of the Obligations in such order, proportion and priority as Lender may determine in its sole discretion. Lender's right to withdraw and apply any of the foregoing funds shall be in addition to all other rights and remedies provided to Lender under the Loan Documents.
Property Cash Flow Allocation. 11 2.2.4 Default Rate 11 2.3 Loan Repayment and Defeasance........................ 11 2.3.1 Repayment 11 2.3.2