TO THE BALANCE IN SUCH SECURITY DEPOSIT ACCOUNT AND
THAT SUCH TENANT SECURITY DEPOSITS ARE BEING HELD IN ACCORDANCE WITH ALL LEGAL
REQUIREMENTS.
(H)
BORROWER WILL FURNISH LENDER ANNUALLY, WITHIN ONE HUNDRED TWENTY
(120) DAYS AFTER THE END OF EACH FISCAL YEAR, WITH A REPORT SETTING FORTH (I)
THE NET OPERATING INCOME FOR SUCH FISCAL YEAR, (II) THE AVERAGE OCCUPANCY RATE
OF THE PROPERTY DURING SUCH FISCAL YEAR, (III) THE CAPITAL EXPENDITURES INCURRED
AT THE PROPERTY DURING SUCH FISCAL YEAR AND THE AGGREGATE RECURRING REPLACEMENT
EXPENDITURES MADE IN CONNECTION THEREWITH, AND (IV) THE BALANCE CONTAINED IN
EACH OF THE ESCROW ACCOUNTS AS OF THE END OF SUCH FISCAL YEAR (WHICH BALANCE
LENDER SHALL PROVIDE UPON BORROWER'S WRITTEN REQUEST THEREFOR).
(I)
BORROWER SHALL CAUSE MANAGER TO KEEP AND MAINTAIN ON A FISCAL
YEAR BASIS, IN ACCORDANCE WITH GAAP AND THE UNIFORM SYSTEM OF ACCOUNTS (OR SUCH
OTHER ACCOUNTING BASIS REASONABLY ACCEPTABLE TO LENDER) CONSISTENTLY APPLIED,
PROPER AND ACCURATE BOOKS, RECORDS AND ACCOUNTS ON AN ACCRUAL BASIS REFLECTING
(I) ALL OF THE FINANCIAL RESULTS OF OPERATION AND FINANCIAL CONDITIONS OF
MANAGER AND (II) ALL ITEMS OF INCOME AND EXPENSE IN CONNECTION WITH THE
OPERATION OF THE PROPERTY OR IN CONNECTION WITH ANY SERVICES, EQUIPMENT OR
FURNISHINGS PROVIDED IN CONNECTION WITH THE OPERATION THEREOF, WHETHER SUCH
INCOME OR EXPENSE MAY BE REALIZED BY MANAGER OR BY ANY OTHER PERSON WHATSOEVER.
LENDER SHALL HAVE THE RIGHT FROM TIME TO TIME AT ALL TIMES DURING NORMAL
BUSINESS HOURS UPON REASONABLE NOTICE TO EXAMINE SUCH BOOKS, RECORDS AND
ACCOUNTS AT THE OFFICE OF MANAGER OR OTHER PERSON MAINTAINING SUCH BOOKS,
RECORDS AND ACCOUNTS AND TO MAKE SUCH COPIES OR EXTRACTS THEREOF AS LENDER SHALL
DESIRE.
AFTER THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT,
BORROWER SHALL PAY ANY COSTS AND EXPENSES INCURRED BY LENDER TO EXAMINE
MANAGER'S ACCOUNTING RECORDS WITH RESPECT TO THE PROPERTY, AS LENDER SHALL
DETERMINE TO BE NECESSARY OR APPROPRIATE IN THE PROTECTION OF LENDER'S INTEREST.
(J)
BORROWER WILL FURNISH LENDER MONTHLY, WITHIN THIRTY (30) DAYS
FOLLOWING THE END OF EACH MONTH, AN OCCUPANCY SUMMARY FOR THE PROPERTY SETTING
FORTH THE OCCUPANCY RATES, AVERAGE DAILY ROOM RATES, REVPAR YIELD INDEX, REVPAR
AND ROOM REVENUES FOR EACH MONTH OF THE CURRENT CALENDAR YEAR, AS WELL AS
YEAR-TO-DATE AVERAGES, AND SUCH OTHER INFORMATION AS MAY CUSTOMARILY BE
REFLECTED THEREON OR REASONABLY REQUESTED BY LENDER, TOGETHER WITH ALL STR
REPORTS RECEIVED BY BORROWER DURING THE PRECEDING MONTH.
(K)
BORROWER SHALL AND SHALL CAUSE GUARANTOR TO FURNISH TO LENDER
ANNUALLY, WITHIN THIRTY (30) DAYS OF FILING ITS RESPECTIVE TAX RETURN, A COPY OF
SUCH TAX RETURN AND WITHIN ONE
53
HUNDRED TWENTY (120) DAYS AFTER THE END OF EACH FISCAL YEAR OR IN LIEU THEREOF
DELIVER ANNUAL FINANCIAL STATEMENTS OF GUARANTOR PREPARED IN ACCORDANCE WITH
GAAP WHICH ARE AUDITED BY A NATIONALLY RECOGNIZED INDEPENDENT CERTIFIED PUBLIC
ACCOUNTANT THAT IS REASONABLY ACCEPTABLE TO LENDER.
(L)
BORROWER SHALL SUBMIT TO LENDER FOR LENDER'S WRITTEN APPROVAL AN
ANNUAL BUDGET NOT LATER THAN FIFTEEN (15) DAYS PRIOR