LENDER INDICATING THE DEBT COVERAGE RATIO WITH
RESPECT TO THE MORTGAGED PROPERTY FOR A DESIGNATED THREE (3) CALENDAR MONTH
CALENDAR PERIOD.
THE FOLLOWING TERMS DEFINE THE DEBT COVERAGE RATIO ARE AS FOLLOWS:
(1)
CALCULATION.
THE DEBT COVERAGE RATIO
CALCULATION SHALL BE UNDERTAKEN FOR THE THREE (3) MONTH PERIOD (SUCH PERIODS
BEING HEREIN REFERRED TO AS A "CALENDAR PERIOD").
THE TERM "DEBT COVERAGE
RATIO" MEANS NET OPERATING INCOME (HEREINAFTER DEFINED) FOR A CALENDAR PERIOD
DIVIDED BY DEBT SERVICE REQUIREMENTS (HEREINAFTER DEFINED) WITH RESPECT TO SUCH
SAME CALENDAR PERIOD.
BORROWER SHALL PROVIDE WRITTEN EVIDENCE AND DOCUMENTS TO
LENDER INDICATING THE CALCULATIONS AND BACKUP INFORMATION FOR THE DEBT COVERAGE
RATIO FOR THE CALENDAR PERIOD.
LENDER SHALL BE ENTITLED TO REQUEST AND REQUIRE
SUCH BACKUP DOCUMENTATION AS MAY BE REQUIRED BY LENDER IN ORDER TO SATISFY
ITSELF AS TO THE CORRECT CALCULATION OF THE DEBT COVERAGE RATIO FOR THE CALENDAR
PERIOD.
(2)
DEBT SERVICE REQUIREMENTS. THE TERM "DEBT
SERVICE REQUIREMENTS" SHALL MEAN ALL PRINCIPAL AND INTEREST PAYMENTS WHICH WOULD
BE OWING DURING SUCH CALENDAR PERIOD BASED UPON A HYPOTHETICAL PAYMENT SCHEDULE
CALCULATED USING (I) THE OUTSTANDING
11
PRINCIPAL BALANCE, (II) AN INTEREST RATE EQUAL TO THE ACTUAL INTEREST RATE BORNE
ON THE INDEBTEDNESS DURING THE CALENDAR PERIOD, AND (III) A LEVEL-PAYMENT
AMORTIZATION SCHEDULE OF TWENTY-FIVE (25) YEARS.
(3)
NET OPERATING INCOME.
THE TERM "NET
OPERATING INCOME" SHALL MEAN, FOR EACH APPLICABLE CALENDAR PERIOD, THE
DIFFERENCE OF (I) GROSS INCOME LESS (II) OPERATING EXPENSES, DETERMINED ON A
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BASIS OF ACCOUNTING EXCEPT AS OTHERWISE
PROVIDED HEREIN.
AS USED HEREIN, THE FOLLOWING TERMS SHALL HAVE THE RESPECTIVE
MEANINGS SET FORTH BELOW.
(4)
GROSS INCOME.
THE TERM "GROSS INCOME" FOR
EACH CALENDAR PERIOD SHALL MEAN RENTALS, REVENUES AND OTHER CASH FORMS OF
CONSIDERATION, RECEIVED BY, OR PAID TO OR FOR THE ACCOUNT OF OR FOR THE BENEFIT
OF, BORROWER RESULTING FROM OR ATTRIBUTABLE TO THE OPERATION, LEASING AND
OCCUPANCY OF THE MORTGAGED PROPERTY, DETERMINED ON A CASH BASIS (EXCEPT AS
SPECIFIED HEREIN), INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: (I) RENTS BY
ANY LESSEES OR TENANTS OF THE MORTGAGED PROPERTY (NET OF ANY CONCESSIONS);
(II) RENTS AND RECEIPTS RECEIVED BY OR FOR THE BENEFIT OF BORROWER WITH RESPECT
TO THE FULL OR PARTIAL REIMBURSEMENT OF OPERATING EXPENSES FROM ANY LESSEE OR
TENANT OF THE MORTGAGED PROPERTY; (III) PROCEEDS RECEIVED BY OR FOR THE BENEFIT
OF BORROWER IN CONNECTION WITH ANY RENTAL LOSS OR BUSINESS INTERRUPTION
INSURANCE WITH RESPECT TO THE MORTGAGED PROPERTY;
AND (IV) ANY OTHER FEES OR
RENTS COLLECTED BY, FOR OR ON BEHALF OF BORROWER WITH RESPECT TO THE LEASING AND
OPERATION OF THE MORTGAGED PROPERTY; AND (VI) INTEREST, IF ANY, EARNED BY
BORROWER ON SECURITY AND OTHER TYPE DEPOSITS OF AND ADVANCE RENTALS PAID BY, ANY
LESSEES OR TENANTS OF THE MORTGAGED PROPERTY.
Notwithstanding anything included within the above definition of Gross Income,
there shall be excluded from Gross Income the following:
(i) any security or
other deposits of lessees and tenants, unless and until the same actually are
either