Borrower’s failure to maintain a DSCR of 1.00 to 1 or greater (a “ DSCR Failure”) beginning twenty-four (24) months after the Closing Date shall constitute an Event of Default hereunder unless the requisite DSCR Shortfall Contribution is made or DSCR Shortfall Reserve is deposited in a timely manner in accordance with the following sentence. “ Projected Debt Service” shall mean an amount equal to twelve (12) multiplied by the monthly principal ( to the extent actually payable under the Note during the projected period) and interest payment based on the principal balance of the Loan outstanding on the date of the DSCR Test at the Interest Rate (as defined in the Note).
For Borrowing Base Properties owned less than twelve months, “Actual NOI” means, subject to Lender’s approval, an amount equal to (a) the actual aggregate gross revenue from the operation of any Borrowing Base Property during the three month period most recently ended, excluding any accrued revenues attributable to so-called “straight-line” rent accounting annualized minus (b) the greater of (i) stabilized operating expenses as indicated in the most recent Lender approved appraisal or (ii) the sum of (1) all actual expenses and other proper changes incurred in connection with the operation of the applicable Borrowing Base Property during the trailing twelve month period (including real estate taxes, but excluding any management fees, debt service charges, income taxes, depreciation, amortization, capital reserves and other non cash expenses), and (2) an assumed management fee equal to the greater of the actual management fee currently in place or 3% of the aggregate gross revenues from the operations of the Borrowing Base Property during such period.Īctual NOI means actual gross rental, room rentals, food and beverage revenues and other income from the Property achieved during the twelve-month period immediately preceding the date of the DSCR Test minus actual operating expenses for the Property, including accruals for property taxes and insurance, the management fee payments made under the Management Agreement and the Replacement Reserve payments made, but excluding costs of the Work (including construction management and similar supervisory costs incurred in connection with the Work), during the 12-month period immediately preceding the date of the DSCR Test.
Actual NOI means, subject to Lender’s approval, an amount equal to (a) the actual aggregate gross revenue from the operation of any Real Property during the three month period most recently ended, excluding any accrued revenues attributable to so-called “ straight- line” rent accounting annualized minus (b) the sum of (i) all actual expenses and other proper changes incurred in connection with the operation of the applicable Real Property during the trailing twelve month period ( including real estate taxes, but excluding any management fees, debt service charges, income taxes, depreciation, amortization, capital reserves and other non- cash expenses), and (ii) an assumed management fee equal to the greater of the actual management fee currently in place or 3% of the aggregate gross revenues from the operations of the Real Property during such period.