Annualized Basis. The determination of projected Operating Lease Expense, Adjusted Principal Payments, other scheduled principal payments, interest expense, and Capital Lease expense for an upcoming 12 month period, by (a) taking the current scheduled Operating Lease payment, Adjusted Principal Payments (in the case of Release Loans), other principal and interest payments (in the case of Loans that are not Release Loans and other Indebtedness included in such computation), and Capital Lease payments in each case... as in effect for the first month of such 12 month period and multiplying each such amount by 12, and (b) in the case of non-amortizing Indebtedness (including for example, revolving credit facilities) taking the current principal balance thereof as of the date of determination multiplied by the current annual interest rate applicable to such Indebtedness; provided, however, (i) in the case of revolving credit facilities so long as Borrower provides Lender with evidence reasonably satisfactory to Lender regarding the interest actually paid on such revolving indebtedness for the prior 12 month period, such actual interest expense will be used to calculate the applicable fixed charge coverage ratio; and (ii) in the case of a new hotel property that as of the date of determination of annualized principal and interest payments has been open for operation for less than 12 consecutive months, in lieu of clause (b) above, annualized principal payments on Indebtedness that finances the acquisition or development of such hotel property shall be determined by taking the current scheduled principal and interest payment on such loan and multiplying such current payment by the number of months that such new hotel site has actually been owned, opened and operating (as determined by Lender).View More
