BORROWER FURNISHED LENDER CONSOLIDATED STATEMENTS PURSUANT
TO SUBSECTION (II) OF THE PREVIOUS SENTENCE, AN UNAUDITED SEPARATE BALANCE SHEET
FOR BORROWER, WHICH BALANCE SHEET SHALL ACCOUNT FOR THE LOAN SEPARATELY FROM THE
MEZZANINE LOAN, IF ANY. BORROWER'S ANNUAL FINANCIAL STATEMENTS SHALL BE
ACCOMPANIED BY A CERTIFICATE EXECUTED BY AN AUTHORIZED OFFICER OF BORROWER
STATING THAT SUCH ANNUAL FINANCIAL STATEMENT PRESENTS FAIRLY THE FINANCIAL
CONDITION AND THE RESULTS OF OPERATIONS OF BORROWER AND THE PROPERTY. TOGETHER
WITH BORROWER'S ANNUAL FINANCIAL STATEMENTS, BORROWER SHALL FURNISH TO LENDER AN
OFFICER'S CERTIFICATE CERTIFYING AS OF THE DATE THEREOF WHETHER TO THE BEST OF
BORROWER'S KNOWLEDGE THERE EXISTS AN EVENT OR CIRCUMSTANCE WHICH CONSTITUTES A
DEFAULT OR EVENT OF DEFAULT BY BORROWER UNDER THE LOAN DOCUMENTS AND IF SUCH
DEFAULT OR EVENT OF DEFAULT EXISTS, THE NATURE THEREOF, THE PERIOD OF TIME IT
HAS EXISTED AND THE ACTION THEN BEING TAKEN TO REMEDY THE SAME.
(C)
BORROWER WILL FURNISH LENDER ON OR BEFORE THE FORTY-FIFTH (45TH)
DAY AFTER THE END OF EACH FISCAL QUARTER (BASED ON BORROWER'S FISCAL YEAR), THE
FOLLOWING ITEMS, ACCOMPANIED BY CERTIFICATE FROM AN AUTHORIZED OFFICER OF
BORROWER, CERTIFYING THAT SUCH ITEMS ARE
37
TRUE, CORRECT, ACCURATE AND COMPLETE AND FAIRLY PRESENT THE FINANCIAL CONDITION
AND RESULTS OF THE OPERATIONS OF BORROWER AND THE PROPERTY IN ACCORDANCE WITH
GAAP (OR SUCH ACCOUNTING METHOD REASONABLY ACCEPTABLE TO LENDER) AS APPLICABLE:
(I)
QUARTERLY AND YEAR-TO-DATE STATEMENTS OF INCOME AND EXPENSE AND CASH
FLOW PREPARED FOR SUCH QUARTER WITH RESPECT TO THE PROPERTY, WITH A BALANCE
SHEET FOR SUCH QUARTER FOR BORROWER;
(II)
A CALCULATION REFLECTING THE DEBT SERVICE COVERAGE RATIO AS OF THE
LAST DAY OF SUCH QUARTER, FOR SUCH QUARTER AND THE LAST FOUR QUARTERS;
(III)
A CURRENT RENT ROLL FOR THE PROPERTY;
(IV)
A COMPARISON OF THE BUDGETED INCOME AND EXPENSES AND THE ACTUAL INCOME
AND EXPENSES FOR SUCH QUARTER AND YEAR TO DATE FOR THE PROPERTY, TOGETHER WITH A
DETAILED EXPLANATION OF ANY VARIANCES OF MORE THAN FIVE PERCENT (5%) BETWEEN
BUDGETED AND ACTUAL AMOUNTS YEAR TO DATE; AND
(V)
ANY WRITTEN NOTICE RECEIVED FROM A TENANT THREATENING NON-PAYMENT OF
RENT OR OTHER DEFAULT, ALLEGING OR ACKNOWLEDGING A DEFAULT BY LANDLORD,
REQUESTING A TERMINATION OF A LEASE OR A MATERIAL MODIFICATION OF ANY LEASE OR
NOTIFYING BORROWER OF THE EXERCISE OR NON-EXERCISE OF ANY OPTION PROVIDED FOR IN
SUCH TENANT'S LEASE, OR ANY OTHER SIMILAR MATERIAL CORRESPONDENCE RECEIVED BY
BORROWER FROM TENANTS DURING THE SUBJECT QUARTER.
(D)
INTENTIONALLY OMITTED.
(E)
BORROWER SHALL SUBMIT THE ANNUAL BUDGET TO LENDER NOT LATER THAN
THIRTY (30) DAYS PRIOR TO THE COMMENCEMENT OF EACH FISCAL YEAR.
(F)
BORROWER SHALL FURNISH TO LENDER, WITHIN TEN (10) DAYS AFTER
REQUEST (OR AS SOON THEREAFTER AS MAY BE REASONABLY POSSIBLE), SUCH FURTHER
DETAILED INFORMATION WITH RESPECT TO THE OPERATION OF THE PROPERTY AND THE
FINANCIAL AFFAIRS OF BORROWER AS MAY BE REASONABLY REQUESTED BY LENDER,
INCLUDING, WITHOUT LIMITATION, A COMPARISON OF THE BUDGETED INCOME AND EXPENSES
AND THE ACTUAL INCOME AND EXPENSES YEAR TO DATE FOR THE PROPERTY,