200702332 - Laserfiche WebLink

Browse

-13- 200702332 16 (n) "Capital Recovery Payment(s)" mean the monthly payments, or, ifno cash exists for the payment thereof, the monthly accruals, each in the amount of $415.58 per month, for 180 months, to reimburse the Owner, with interest, for the capital contributions made by Owner as a part of the MAHRA Restructuring Loan transaction. The payment provisions for the Capital Recovery Payments and the conditions therefor are contained in this Rider. 16. (0) "Incentive Performance Fee" means the annual non-accruing fee which may be payable to the Owner to recognize imputed Owner equity and provide an incentive for operating efficiencies. 7. Additional Expenditures. From and after the date hereof, but only for so long as the mortgaged property is encumbered by a mortgage securing the MAHRA Restructuring Loan: a. Subject to available cash, the Capital Recovery Payments shall be received monthly by Owner; provided, however, the Owner may not receive the monthly Capital Recovery Payment unless (i) all Project expenses are paid (including accrued payables for which payment is due from the previous year's audited financial statements), (ii) there are no outstanding sums due under either the First Mortgage or, if applicable, Priority Cash Flow Indebtedness, (iii) the mortgaged property is in acceptable physical condition to HUD, as evidenced by at least a 60 rating from HUD's Real Estate Assessment Center (or some other comparable determination of physical condition as elected by HUD) unless Owner and HUD have mutually agreed to Owner's proposal to cure deficient mortgaged property condition(s), (iv) all HUD audit or management findings are resolved in a manner acceptable to HUD, and (v) there is no default under the Regulatory Agreement, as amended by this Rider, or any other documents which evidence or secure the First Mortgage, the MAHRA Restructuring Loan, or any other permitted encumbrance on the mortgaged property (all of the foregoing items (i) through (v) are collectively referred to as "Capital Recovery Payment Conditions"). In the event that any of the Capital Recovery Payment Conditions have not been satisfied, as determined by HUD, the Capital Recovery Payments shall not be made, but they shall accrue, without additional interest, until HUD determines that they may resume. If cash is insufficient to pay Capital Recovery Payments, as determined by HUD, after HUD's review of the Owner's audited annual financial statement, the Capital Recovery Payments shall not be made, but they shall accrue, without additional interest, until the next annual review by HUD of the Owner's audited annual financial statement confirms, as determined by HUD, that there is sufficient cash then available to resume the Capital Recovery Payments. HUD's determination will include the amount of cash then available to the Owner for payment toward accrued Capital Recovery Payments; and b. The Incentive Performance Fee may be received annually by Owner in the amount ofthree percent (3.0%) of the Effective Gross Income derived from the mortgaged property. The Effective Gross Income equals all rental and other income that is realized annually through the operations of the mortgaged property. The Incentive Performance Fee is payable, if at all, from Surplus Cash after HUD concludes that (i) all Project expenses have been paid (unless funds for payment are set aside or deferment of payment has been approved by the Secretary), (ii) there are no outstanding sums due under either the First Mortgage or, if applicable, Priority Cash Flow Indebtedness, (iii) the mortgaged property is in acceptable physical condition to HUD, as evidenced by at least a 60 rating from HUD's Real Estate Assessment Center (or some other comparable determination of physical condition as elected by HUD) unless Owner and HUD have mutually agreed to Owner's proposal to cure deficient mortgaged property condition(s), (iv) HUD-92465 (7-77)