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(55th) anniversary of the date of the issuance of the Certificate of Completion for the Project; or <br />(b) July 11, 2071. Notwithstanding the foregoing, the full Note Amount may be accelerated <br />as set forth in Section 14 hereof. <br />4. Definitions. <br />As used herein, 'Annual Project Revenue" shall mean all gross income and all <br />revenues of any kind from the Project in a calendar year, including without limitation, rent, <br />Section 8 housing assistance payments, if any, late charges, vending machine income, and any <br />other revenues of whatever kind or nature from the Project, except that security deposits (until <br />applied), interest on security deposits and required reserves, sales proceeds, and the proceeds of <br />loans, refinancings, condemnation, insurance claims, and partner capital contributions, shall not be <br />considered Annual Project Revenue. <br />As used herein, "Applicable Federal Rate" means the interest rate set by the <br />United States Treasury from time to time for the purpose of determining applicable Low Income <br />Housing Tax Credit interest rates published by the Internal Revenue Service in monthly reserve <br />rulings. <br />As used herein, "Debt Service" means regularly scheduled payments of principal and <br />interest made in a calendar year pursuant to the financing obtained for the development and <br />ownership of the Project which has been approved by the City pursuant to the Agreement, and <br />which is senior in lien priority to the City Loan, but excluding payments made pursuant to the <br />Promissory Note. <br />As used herein, "Capital Replacement Reserve" shall mean a reasonably required <br />reserve not to exceed $250 per unit per year (or such greater amount as may be required by <br />lenders or investors for the Project, to be used for the purpose of replacing capital items. <br />On or before one hundred fifty (150) days after the end of the Borrower's fiscal <br />year, of each year commencing in the year after the issuance of the Certificate of Completion <br />for the Project, the Borrower shall annually provide the City an audited financial statement for the <br />Project and a Residual Receipts Report, in the form attached hereto as Exhibit A, which shall <br />describe in detail the Annual Project Revenue, Debt Service, Operating Expenses, Capital <br />Replacement Reserve (including deposits therein and expenditures therefrom), and Residual <br />Receipts for that year for the Project. The Borrower shall also submit to the City, on or before one <br />hundred fifty (150) days after the end of the Borrower's fiscal year, of each year commencing <br />in the year of the issuance of the Certificate of Completion for the Project, annual audited financial <br />statements with respect to the Project that have been reviewed by an independent certified <br />public accountant, together with an expressed written opinion of the certified public <br />accountant that such financial statements present the financial position, results of operations, and <br />cash flows fairly and in accordance with generally accepted accounting principles. <br />"Operating Budget" and 'Annual Budget" shall mean the annual operating <br />budget for the Project that sets forth the projected Operating Expenses for the upcoming year that is <br />subject to and shall be submitted for review and approval by the Deputy City Manager or <br />his /her designee, in his /her reasonable discretion, each year during the Affordability Period <br />pursuant to the Agreement. <br />B -2 <br />1076 \49 \184331 1.2 <br />