PROMISSORY NOTE - Laserfiche WebLink

consideration for the leasing or other use of any part of the Project. (iii) "Annual Operating Expenses" with respect to a particular calendar year shall mean the following costs reasonably and actually incurred for the operation and maintenance of the Project: Property taxes and assessments imposed on the Project; debt service, reserves and other payments currently due or payable on a non optional (to Borrower) basis on all construction, permanent and Affordable Housing Program loans secured by the Project; reasonable property management fees and reimbursements not to exceed reimbursements which are standard in the industry; property management staff salaries; premiums for property damage and liability insurance and rental interruption insurance; utility services not paid for directly by tenants; maintenance and repair; any annual license or certificate of occupancy fees required for the operation of the Project; security services; advertising and marketing; cash deposits into reserves for capital replacements of Project improvements as required by CHFA or as reasonably required by the Borrower; cash deposited into an operating reserve in an amount required by CHFA or reasonably required by the Borrower; reasonable partnership management fees; reasonable fees for resident services and activities; and other ordinary and reasonable operating expenses not listed above. (iv) "Annual Operating Expenses" shall not include the following: Debt service payments on mortgages subordinate to the this Loan; depreciation, amortization, depletion or other non -cash expenses; any amount expended from a reserve account; distributions to partners; any amount paid to the Borrower or any entity controlled by the persons or entities in control of the Borrower. The last clause in the preceding sentence shall not apply to fees paid to the property management agent affiliated with the general partner of Borrower, or to developer fee and partnership management fee payments. (v) "Surplus Cash" shall also mean proceeds from the refinancing of the Project which shall include, without limitation, the net cash realized from the refinancing of the Project (after payment of the following expenses relating thereto: Financing or refinancing fees and closing costs and any other unpaid costs of operations). (vi) Borrower shall deliver to Holder on or before May 30 of each year starting in 2001, a copy of the independent audit for the Project performed by a certified public accountant for the previous year. (b) Lump Sum Payment from Sales Proceeds. Upon the sale or transfer of all or part of the Project, the unpaid principal and all accrued interest shall be due and payable. This subparagraph ndt \Pleasanton.RVC 2