ACTION THEN BEING TAKEN TO REMEDY IT.
6.3.3
MONTHLY/QUARTERLY REPORTS.
BORROWER SHALL FURNISH TO
LENDER WITHIN 30 DAYS AFTER THE END OF EACH CALENDAR MONTH OR CALENDAR QUARTER
(AS INDICATED BELOW) THE FOLLOWING ITEMS: (I) MONTHLY AND YEAR-TO-DATE OPERATING
STATEMENTS, NOTING NET OPERATING INCOME AND OTHER INFORMATION NECESSARY AND
SUFFICIENT UNDER GAAP (OR FEDERAL INCOME TAX BASIS OF ACCOUNTING, CONSISTENTLY
APPLIED) TO FAIRLY REPRESENT THE FINANCIAL POSITION AND RESULTS OF OPERATION OF
THE PROPERTY DURING SUCH CALENDAR MONTH, ALL IN FORM SATISFACTORY TO LENDER;
(II) A BALANCE SHEET FOR SUCH CALENDAR MONTH; (III) A COMPARISON OF THE BUDGETED
INCOME AND EXPENSES AND THE ACTUAL INCOME AND EXPENSES FOR EACH MONTH AND
YEAR-TO-DATE FOR THE PROPERTY, TOGETHER WITH A DETAILED EXPLANATION OF ANY
VARIANCES OF TEN PERCENT (10%) OR MORE BETWEEN BUDGETED AND ACTUAL AMOUNTS FOR
SUCH PERIOD AND YEAR-TO-DATE; (IV) A STATEMENT OF THE ACTUAL CAPITAL EXPENSES
MADE BY BORROWER DURING EACH CALENDAR QUARTER AS OF THE LAST DAY OF SUCH
CALENDAR QUARTER; (V) INTENTIONALLY OMITTED; (VI) AN AGED RECEIVABLES REPORT AND
(VII) RENT ROLLS IDENTIFYING THE LEASED PREMISES, NAMES OF ALL TENANTS, UNITS
LEASED, MONTHLY RENTAL AND ALL OTHER CHARGES PAYABLE UNDER EACH LEASE, DATE TO
WHICH PAID, TERM OF LEASE, DATE OF OCCUPANCY, DATE OF EXPIRATION, MATERIAL
SPECIAL PROVISIONS, CONCESSIONS OR INDUCEMENTS GRANTED TO TENANTS, AND A
YEAR-BY-YEAR SCHEDULE SHOWING BY PERCENTAGE THE RENTABLE AREA OF THE
IMPROVEMENTS AND THE TOTAL BASE RENT ATTRIBUTABLE TO LEASES EXPIRING EACH YEAR)
AND A DELINQUENCY REPORT FOR THE PROPERTY.
EACH SUCH STATEMENT SHALL BE
ACCOMPANIED BY AN OFFICER'S CERTIFICATE CERTIFYING THAT TO THE BEST OF SUCH
OFFICER'S KNOWLEDGE, (1) THAT SUCH ITEMS ARE 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 FEDERAL
INCOME TAX BASIS OF ACCOUNTING, CONSISTENTLY APPLIED) (SUBJECT TO NORMAL
YEAR-END ADJUSTMENTS) AND (2) WHETHER THERE EXISTS A DEFAULT OR EVENT OF
DEFAULT, AND IF SO, THE NATURE THEREOF, THE PERIOD OF TIME IT HAS EXISTED AND
THE ACTION THEN BEING TAKEN TO REMEDY IT.
6.3.4
OTHER REPORTS.
SUBJECT TO THE PROVISIONS OF SECTION
6.3.2, BORROWER SHALL FURNISH TO LENDER, WITHIN TEN BUSINESS DAYS AFTER REQUEST,
SUCH FURTHER DETAILED INFORMATION WITH RESPECT TO THE OPERATION OF THE PROPERTY
AND THE FINANCIAL AFFAIRS OF BORROWER OR MANAGER AS MAY BE REASONABLY REQUESTED
BY LENDER OR ANY APPLICABLE RATING AGENCY.
6.3.5
ANNUAL BUDGET.
BORROWER SHALL PREPARE AND SUBMIT (OR
SHALL CAUSE MANAGER TO PREPARE AND SUBMIT) TO LENDER BY DECEMBER 15TH OF EACH
YEAR DURING THE TERM FOR APPROVAL BY LENDER, WHICH APPROVAL SHALL NOT BE
UNREASONABLY WITHHELD OR DELAYED, A PROPOSED PRO FORMA BUDGET FOR THE PROPERTY
FOR THE SUCCEEDING CALENDAR YEAR (THE "ANNUAL BUDGET", AND EACH ANNUAL BUDGET
APPROVED BY LENDER IS REFERRED TO HEREIN AS THE "APPROVED ANNUAL BUDGET"), AND,
PROMPTLY AFTER PREPARATION THEREOF, ANY REVISIONS TO SUCH ANNUAL BUDGET.
THE
ANNUAL BUDGET SHALL CONSIST OF AN OPERATING EXPENSE BUDGET SHOWING, ON A
MONTH-BY-MONTH BASIS, IN REASONABLE DETAIL, EACH LINE