10B Action 2012 0117 - Laserfiche WebLink

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PAYMENTS 1.1 PAYMENT DATES, MATURITY DATE Annual payments on this Note shall be payable on a residual receipts basis with Sixty Percent (60 %) of all Surplus Cash (defined below) payable to City toward principal and accrued interest. Payments shall be credited first to any unpaid late charges and other costs and fees then due, then to accrued interest, and then to principal. In no event shall any amount due under this Note become subject to any rights, offset, deduction or counterclaim on the part of Borrower. The entire outstanding principal balance of this Note, together with interest accrued thereon and any other sums accrued hereunder shall be payable in full on the date (the "Maturity Date ") which is the fifty -fifth (55 anniversary of the date hereof. 1.2 ANNUAL PAYMENTS FROM SURPLUS CASH By no later than June 1 of each year following the origination date of this Note, Borrower shall pay to City the percentage share of Surplus Cash determined pursuant to Section 1.1 above generated by the Project during the previous calendar year. No later than May 1 of each year following the origination date of this Note, Borrower shall provide to City Borrower's calculation of Surplus Cash 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 in accordance with generally accepted accounting principles including a statement showing the balance of all outstanding residual receipts loans together with their respective maturity dates. No later than November 1 of each year following the origination date of this Note, Borrower shall provide to City a projected budget for the following calendar year which shall include an estimate of Surplus Cash. 1.2.1 "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 net cash proceeds realized from any refinancing of the Project, less fees and closing costs reasonably incurred in connection with such refinancing, and any City- approved uses of the net cash proceeds of the refinancing. 1.2.2 "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; the proceeds of casualty insurance not required to be paid to the holders of Approved Senior Loans (defined below) (provided however, expenditure of such proceeds (or projected expenditures approved by City) for repair or restoration of the Project shall be included within Annual Operating Expenses in the year of the expenditure); 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 or other reserve accounts to Borrower other than for costs associated with the Project. Gross Revenue shall not include tenant security deposits, loan proceeds, capital contributions or similar 1762578.1 2