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| | After a qualified
sell-out of the Syndicate's fractional tenants-in-common ownership interests is
attained, the Syndicator becomes a transaction fiduciary for the benefit of the
Sponsor, the project operating business employees and the
Syndicate. The Syndicator's
role is to:
-
maintain the
transaction lockbox account pursuant to global escrow instructions approved
by the Sponsor and the Syndicate, at the sole cost and expense of the
Syndicate.
-
maintain the
reserve accounts in favor of the Syndicate
and subject to the Syndicate's global escrow instructions.
-
maintain records
of each transaction between the Syndicate
and the Sponsor's operating
entity, including management reports detailing the results of operations of
all project departments and the financial results of operations to date,
together with the supporting information that shall be filed by the Syndicator
for public access.
-
make all
distributions of excess cash flows in accordance with the Syndicate's
owners
of record, each on a pro-rata share basis in accordance with the
Distribution Plan's requirements.
-
reserve the
project employee income share pending distribution to the project employees
of record by the Sponsor and receive of proof of payment from the
Sponsor.
-
pay all costs of
transferring funds and deduct all fees due to the Fiduciary.
The object of this
systemic program is to:
-
maximize the
transaction's financial reporting transparency to the highest practical
operating limit; and
-
provide the
opportunity to have profit distributions treated pari passu (i.e.: on
the same level of funding priority) with the payment of project operating
expenses; and
-
provide the
program infrastructure required to support the investing-public's desire for
investment liquidity by offering a repurchase agreement to allow the
investing-public to sell their Syndicate holdings at a time of the
investing-public's choosing.
-
increase
management accountability at all stages of asset development and operating
states via the strict enforcement of the "Project Key Milestone
Economic Goals" and requirement for bi-weekly management reports.
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