AND FAIRLY
PRESENT THE RESULTS OF THE OPERATIONS OF
THE PROPERTY (SUBJECT TO NORMAL
YEAR-END ADJUSTMENTS) AS APPLICABLE: (I) A RENT ROLL FOR THE SUBJECT MONTH; (II)
QUARTERLY AND YEAR-TO-DATE OPERATING STATEMENTS (INCLUDING CAPITAL EXPENDITURES)
PREPARED FOR EACH CALENDAR QUARTER, NOTING NET OPERATING INCOME, GROSS INCOME
FROM OPERATIONS, AND OPERATING EXPENSES (NOT INCLUDING ANY CONTRIBUTIONS TO THE
REPLACEMENT RESERVE FUND), AND OTHER INFORMATION NECESSARY AND SUFFICIENT TO
FAIRLY REPRESENT THE FINANCIAL POSITION AND RESULTS OF OPERATION OF THE PROPERTY
46
DURING SUCH CALENDAR MONTH, AND CONTAINING A COMPARISON OF BUDGETED INCOME AND
EXPENSES AND THE ACTUAL INCOME AND EXPENSES TOGETHER WITH A DETAILED EXPLANATION
OF ANY VARIANCES OF FIVE PERCENT (5%) OR MORE BETWEEN BUDGETED AND ACTUAL
AMOUNTS FOR SUCH PERIODS, ALL IN FORM SATISFACTORY TO LENDER; (III) A
CALCULATION REFLECTING THE ANNUAL DEBT SERVICE COVERAGE RATIO FOR THE
IMMEDIATELY PRECEDING TWELVE (12) MONTH PERIOD AS OF THE LAST DAY OF SUCH MONTH;
AND (IV) A NET CASH FLOW SCHEDULE.
(D)
FOR THE PARTIAL YEAR PERIOD COMMENCING ON THE MODIFICATION DATE,
AND FOR EACH FISCAL YEAR THEREAFTER, BORROWER SHALL CAUSE PROPERTY MANAGER TO
SUBMIT TO LENDER AN ANNUAL BUDGET NOT LATER THAN THIRTY (30) DAYS AFTER THE
COMMENCEMENT OF SUCH PERIOD OR FISCAL YEAR IN FORM REASONABLY SATISFACTORY TO
LENDER.
IF A CASH TRAP EVENT PERIOD EXISTS, THE ANNUAL BUDGET SHALL BE SUBJECT
TO LENDER'S WRITTEN APPROVAL (EACH SUCH ANNUAL BUDGET, AN "APPROVED ANNUAL
BUDGET").
IN THE EVENT THAT LENDER OBJECTS TO A PROPOSED ANNUAL BUDGET
SUBMITTED BY BORROWER DURING A CASH TRAP EVENT PERIOD, LENDER SHALL ADVISE
BORROWER OF SUCH OBJECTIONS WITHIN FIFTEEN (15) DAYS AFTER RECEIPT THEREOF (AND
DELIVER TO BORROWER A REASONABLY DETAILED DESCRIPTION OF SUCH OBJECTIONS) AND
BORROWER SHALL PROMPTLY REVISE SUCH ANNUAL BUDGET AND RESUBMIT THE SAME TO
LENDER.
LENDER SHALL ADVISE BORROWER OF ANY OBJECTIONS TO SUCH REVISED ANNUAL
BUDGET WITHIN TEN (10) DAYS AFTER RECEIPT THEREOF (AND DELIVER TO BORROWER A
REASONABLY DETAILED DESCRIPTION OF SUCH OBJECTIONS) AND BORROWER SHALL PROMPTLY
REVISE THE SAME IN ACCORDANCE WITH THE PROCESS DESCRIBED IN THIS SUBSECTION
UNTIL LENDER APPROVES THE ANNUAL BUDGET.
UNTIL SUCH TIME THAT LENDER APPROVES A
PROPOSED ANNUAL BUDGET, THE MOST RECENTLY APPROVED ANNUAL BUDGET SHALL APPLY;
PROVIDED THAT SUCH APPROVED ANNUAL BUDGET SHALL BE ADJUSTED TO REFLECT ACTUAL
INCREASES IN TAXES, INSURANCE PREMIUMS AND OTHER CHARGES.
(E)
IN THE EVENT THAT A CASH TRAP EVENT PERIOD EXISTS AND BORROWER
MUST INCUR AN EXTRAORDINARY OPERATING EXPENSE OR CAPITAL EXPENSE NOT SET FORTH
IN THE APPROVED ANNUAL BUDGET (EACH AN "EXTRAORDINARY EXPENSE"), THEN BORROWER
SHALL PROMPTLY DELIVER TO LENDER A REASONABLY DETAILED EXPLANATION OF SUCH
PROPOSED EXTRAORDINARY EXPENSE FOR LENDER'S APPROVAL.
(F)
IF, AT THE TIME ONE OR MORE DISCLOSURE DOCUMENTS ARE BEING
PREPARED FOR A SECURITIZATION, LENDER EXPECTS THAT BORROWER ALONE OR BORROWER
AND ONE OR MORE AFFILIATES OF BORROWER COLLECTIVELY, OR THE PROPERTY ALONE OR
THE PROPERTY AND RELATED PROPERTIES COLLECTIVELY, WILL BE A SIGNIFICANT OBLIGOR,
BORROWER SHALL FURNISH TO LENDER UPON REQUEST (I) THE SELECTED FINANCIAL DATA
OR, IF APPLICABLE,