Common use of Rollover costs Clause in Contracts

Rollover costs. On each Payment Date during a Cash Management Period (which has occurred pursuant to a NOI Trigger Event), Borrower shall deliver to Lender the sum of $57,659.12, which sums shall be held in the Rollover Reserve Account. If any tenant pursuant to a Lease that provides for annual rent equal to, or greater than, $250,000, (a) enters into an agreement with Borrower whereby Borrower releases such tenant from its obligation to pay rent or otherwise settles Borrower’s claim to rent, or (b) files a petition for relief under the federal bankruptcy code or other creditor’s rights laws, and such event causes a Cash Management Period (or would have caused a Cash Management Period if the revenue applicable to such Lease was deducted from Net Operating Income for the trailing 12 months), Borrower shall pay, or cause to be paid, any settlement proceeds, lease termination or similar payment to Lender, and Lender shall deposit the same into the Rollover Reserve Account; and shall be released to Borrower at the end of such Cash Management Period (or such assumed Cash Management Period after giving effect to the Lease termination), except to the extent theretofore released pursuant to the following sentence. All sums in the Rollover Reserve Account shall be used for payment of tenant improvement expenses and leasing commissions incurred by Borrower in connection with replacing tenants at the Property pursuant to Leases approved (or deemed approved) pursuant to this Agreement. Provided no NOI Trigger Event then exists, any portion of such lease termination payment remaining after application of the same pursuant to this Section 3.5 shall be returned to Borrower.