Services
O&M
(Operations & Maintenance)
Operations & Maintenance (O&M means the functions, duties and labour associated with the daily operations and normal repairs, replacement of parts and structural components, and other activities needed to preserve an asset so that it continues to provide acceptable services and achieves its expected life
(a) utility services supplied to the common areas of the Project, which may include, without limitation, janitor service, security, power, gas, telephone, light, heating, water and all other utility services,
(b) compensation to the management agent, salaries and wages of employees, payments to employee retirement systems, fees of auditors, accountants, attorneys or engineers,
(c) monthly deposits to the Repair and Replacement Fund pursuant to Section 5.7(g) of the Indenture, and
(d) all other reasonable and necessary costs of the Borrower or charges required to be paid by it related to the operation and maintenance of the common areas of the Project, including, but not limited to, costs of insurance and property taxes, if any, but excluding in all cases
(i) depreciation, replacement and obsolescence charges or reserves therefor,
(ii) amortization of intangibles or other bookkeeping entries of a similar nature,
(iii) costs of capital additions, replacements, betterments, extensions or improvements to the common areas of the Project, which under Generally Accepted Accounting Principles are chargeable to a capital account or to a reserve for depreciation,
(iv) debt service on the Loan,
(v) the amount deposited in the Administration Fund, and
(vi) expenses paid from the Repair and Replacement Fund, Surplus Fund or other Project reserves.
