ITEM OF BORROWER'S
ANTICIPATED OPERATING INCOME AND OPERATING EXPENSES (ON A CASH AND ACCRUAL
BASIS), INCLUDING AMOUNTS REQUIRED TO ESTABLISH,
64
MAINTAIN AND/OR INCREASE ANY MONTHLY PAYMENTS REQUIRED HEREUNDER.
UNTIL SUCH
TIME THAT ANY ANNUAL BUDGET HAS BEEN APPROVED BY LENDER, THE PRIOR APPROVED
ANNUAL BUDGET SHALL APPLY FOR ALL PURPOSES HEREUNDER (WITH SUCH ADJUSTMENTS AS
REASONABLY DETERMINED BY LENDER (INCLUDING INCREASES FOR ANY NON-DISCRETIONARY
EXPENSES)).
THE ANNUAL BUDGET FOR THE 2007 CALENDAR YEAR DELIVERED TO LENDER IS
APPROVED AS AN APPROVED ANNUAL BUDGET.
6.3.6
ADDITIONAL REPORTING.
(A)
IF REQUESTED BY LENDER, BORROWER SHALL
PROVIDE LENDER, PROMPTLY UPON REQUEST OR WITHIN THE TIME PERIODS SET FORTH IN
THIS SUBSECTION (A), WITH THE FOLLOWING FINANCIAL STATEMENTS IF, AT THE TIME A
DISCLOSURE DOCUMENT IS BEING PREPARED FOR A SECURITIZATION, IT IS EXPECTED THAT
THE PRINCIPAL AMOUNT OF THE LOAN TOGETHER WITH ANY AFFILIATED LOANS AT THE TIME
OF SECURITIZATION MAY EQUAL OR EXCEED 20% OF THE AGGREGATE PRINCIPAL AMOUNT OF
ALL MORTGAGE LOANS INCLUDED OR EXPECTED TO BE INCLUDED, AS APPLICABLE, IN THE
SECURITIZATION:
(1)
A BALANCE SHEET WITH RESPECT TO THE
PROPERTY FOR THE TWO MOST RECENT FISCAL YEARS, MEETING THE REQUIREMENTS OF
SECTION 210.3-01 OF REGULATION S-X OF THE SECURITIES ACT AND STATEMENTS OF
INCOME AND STATEMENTS OF CASH FLOWS WITH RESPECT TO THE PROPERTY FOR THE THREE
MOST RECENT FISCAL YEARS, MEETING THE REQUIREMENTS OF SECTION 210.3-02 OF
REGULATION S-X, AND, FOR ANY INTERIM PERIOD BETWEEN THE LAST AUDITED BALANCE
SHEET AND THE DATE OF THE MOST RECENT INTERIM FINANCIAL STATEMENTS, INTERIM
FINANCIAL STATEMENTS OF THE PROPERTY MEETING THE REQUIREMENTS OF SECTION
210.3-01 AND 210.3-02 OF REGULATION S-X (ALL OF SUCH FINANCIAL STATEMENTS,
COLLECTIVELY, THE "STANDARD STATEMENTS"); PROVIDED, HOWEVER, THAT WITH RESPECT
TO A PROPERTY (OTHER THAN PROPERTIES THAT ARE HOTELS, NURSING HOMES, OR OTHER
PROPERTIES THAT WOULD BE DEEMED TO CONSTITUTE A BUSINESS AND NOT REAL ESTATE
UNDER REGULATION S-X OR OTHER LEGAL REQUIREMENTS) THAT HAS BEEN ACQUIRED BY
BORROWER FROM AN UNAFFILIATED THIRD PARTY (SUCH PROPERTY, "ACQUIRED PROPERTY"),
AS TO WHICH THE OTHER CONDITIONS SET FORTH IN SECTION 210.3-14 OF REGULATION S-X
FOR PROVISION OF FINANCIAL STATEMENTS IN ACCORDANCE WITH SUCH SECTION HAVE BEEN
MET, IN LIEU OF THE STANDARD STATEMENTS OTHERWISE REQUIRED BY THIS SECTION,
BORROWER SHALL INSTEAD PROVIDE THE FINANCIAL STATEMENTS REQUIRED BY SUCH SECTION
210.3-14 OF REGULATION S-X ("ACQUIRED PROPERTY STATEMENTS").
(2)
NOT LATER THAN 30 DAYS AFTER THE END OF
EACH FISCAL QUARTER FOLLOWING THE DATE HEREOF, A BALANCE SHEET OF THE PROPERTY
AS OF THE END OF SUCH FISCAL QUARTER, MEETING THE REQUIREMENTS OF SECTION
210.3-01 OF REGULATION S-X, AND STATEMENTS OF INCOME AND STATEMENTS OF CASH
FLOWS OF THE PROPERTY FOR THE PERIOD COMMENCING FOLLOWING THE LAST DAY OF THE
MOST RECENT FISCAL YEAR AND ENDING ON THE DATE OF SUCH BALANCE SHEET AND FOR THE
CORRESPONDING PERIOD OF THE MOST RECENT FISCAL YEAR, MEETING THE REQUIREMENTS OF
SECTION 210.3-02 OF REGULATION S-X (PROVIDED, THAT IF FOR SUCH CORRESPONDING
PERIOD OF THE MOST RECENT FISCAL YEAR ACQUIRED PROPERTY STATEMENTS