10C Action 2009 0615 - Laserfiche WebLink

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1.2. MATURITY DATE. The entire outstanding principal balance of Loan together with interest accrued thereon and any other sums due under the City Documents shall be payable in full on the fifty-fifth (55th) anniversary of the date hereof ("Maturity Date"). 1.3 ANNUAL PAYMENTS FROM SURPLUS CASH. Commencing on June 1, 2011 and on the first day of each June thereafter during the term hereof, Borrower shall pay to City all Surplus Cash generated by the Project during the previous calendar year to reduce the indebtedness owed under this Note. No later than May 1 of each year during the term hereof beginning on May 1, 2011, Borrower shall provide Borrower's calculation of Surplus Cash to City for the previous calendar year, accompanied by such supporting documentation as City may reasonably request, including without limitation, an independent audit prepared for the Project by a certified public accountant. No later than November 1 of each year during the term hereof beginning on November 1, 2010, Borrower shall provide to City a projected budget for the following calendar year which shall include an estimate of Surplus Cash. 1.3.1 "Surplus Cash" shall mean for each calendar year during the term hereof, the amount by which Gross Revenue (defined below) exceeds Annual Operating Expenses (defined below) for the Project. Surplus Cash shall also include (i) condemnation awards for a permanent taking of part or all of the Property or the Improvements; and (ii) net cash proceeds realized from any refinancing of the Project, less fees and closing costs reasonably incurred in connection with such refimancing, repayment of the loan being refinanced, and any City-approved uses of the net cash proceeds of the refinancing. 1.3.2 "Gross Revenue" shall mean for each calendar year during the term hereof, all revenue, income, receipts and other consideration actually received by Borrower from the operation and leasing of the Project. Gross Revenue shall include, but not be limited to: all rents, fees and charges paid by tenants; Section 8 payments or other rental subsidy payments received for the dwelling units; deposits forfeited by tenants; all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements; proceeds from vending and laundry room machines; the proceeds of business interruption or similar insurance not paid to senior lenders; the proceeds of casualty insurance not used to rebuild the Improvements and not paid to senior lenders; condemnation awards for a taking of part or all of the Property or the Improvements for a temporary period; and the fair market value of any goods or services provided to Borrower in consideration for the leasing or other use of any part of the Project. Gross Revenue shall include any release of funds from replacement and other reserve accounts to Borrower other than for costs associated with the Project. Gross Revenue shall not include tenants' security deposits, loan proceeds, capital contributions or similar advances. 1.3.3 "Annual Operating Expenses" shall mean for each calendar year during term hereof, the following costs reasonably and actually incurred for the operation and maintenance of the Project to the extent that they are consistent with an annual independent audit performed by a certified public accountant using generally accepted accounting principles: property taxes and assessments; debt service currently due and payable on a non-optional basis (excluding debt service due from residual receipts or surplus cash of the Project) on loans which have been approved by the City and which are secured by deeds of trust senior in priority to the City Deed of Trust ("Approved Senior Loans"); property management fees and reimbursements in amounts in accordance with industry standards for Secured Promissory Note Mission Bell Apts. 1232840-3