Common use of APPLICATION OF CAPITAL RESERVE FUND Clause in Contracts

APPLICATION OF CAPITAL RESERVE FUND. Upon the occurrence of an Event of Default, Lender may apply any sums then present in the Capital Reserve Fund and/or the Additional Capital Reserve Fund (and, if applicable, draw down any letter of credit being held in connection therewith for application hereunder) to the payment of the following items in any order in its sole discretion: (a) Capital Expenses; (b) interest on the unpaid principal balance of the Note; (c) amortization of the unpaid principal balance of the Note; or (d) all other sums payable pursuant to this Agreement and the other Loan Documents. The Capital Reserve Fund and the Additional Capital Reserve Fund shall not constitute a trust fund and may be commingled with other monies held by Lender. Sums in the Capital Reserve Fund and the Additional Capital Reserve Fund shall be held by Lender in an account in Lender's name at a financial institution selected by Lender in its sole discretion and shall be invested in Permitted Investments. Earnings or interest, if any, thereon shall become part of the Capital Reserve Fund or the Additional Capital Reserve Fund and shall be disbursed as provided in this Section 7.4.4. Lender shall not be liable for any loss sustained on the investment of any funds constituting the Capital Reserve Fund or the Additional Capital Reserve Fund.

APPLICATION OF CAPITAL RESERVE FUND. Upon the occurrence acceleration of an Event of Defaultthe Debt, Lender may apply any sums then present in the Capital Reserve Fund and/or the Additional Capital Reserve Fund (and, if applicable, draw down any letter of credit being held in connection therewith for application hereunder) to the payment of the following items in any order in its sole discretion: (a) Capital Expenses; (b) interest on the unpaid principal balance of the Note; (c) amortization of the unpaid principal balance of the Note; or (d) all other sums payable pursuant to this Agreement and the other Loan Documents. The Capital Reserve Fund and the Additional Capital Reserve Fund shall not constitute a trust fund and may be commingled with other monies held by Lender. Sums in the Capital Reserve Fund and the Additional Capital Reserve Fund shall be held by Lender in an account in Lender's name at a financial institution selected by Lender in its sole discretion and shall be invested in Permitted Investments. Earnings or interest, if any, thereon shall become be retained as part of the Capital Reserve Fund or the Additional Capital Reserve Fund such funds and shall be disbursed as provided applied in accordance with this Section 7.4.47.4. Lender shall not be liable for any loss sustained on the investment of any funds constituting the Capital Reserve Fund or the Additional Capital Reserve Fund.

APPLICATION OF CAPITAL RESERVE FUND. Upon the occurrence of an Event of Default, Lender may apply any sums then present in the Capital Reserve Fund and/or the Additional Capital Reserve Fund (and, if applicable, draw down any letter of credit being held in connection therewith for application hereunder) to the payment of the following items in any order in its sole discretion: (a) Capital Expenses; (b) interest on the unpaid principal balance of the Note; (c) amortization of the unpaid principal balance of the Note; or (d) all other sums payable pursuant to this Agreement and the other Loan Documents. The Capital Reserve Fund and the Additional Capital Reserve Fund shall not constitute a trust fund and may be commingled with other monies held by Lender. Sums in the Capital Reserve Fund and the Additional Capital Reserve Fund shall be held by Lender in an account in Lender's name at a financial institution selected by Lender in its sole discretion and shall be invested in Permitted InvestmentsInvestments (as defined in the Deposit Account Agreement). Earnings or interest, if any, thereon shall become part of the Capital Reserve Fund or the Additional Capital Reserve Fund and shall be disbursed as provided in this Section 7.4.47.4.3 or, if requested by Borrower (not more frequently than once every six months), Lender shall cause the earnings or interest actually collected thereon to be paid over to Borrower. Lender shall not be liable for any loss sustained on the investment of any funds constituting the Capital Reserve Fund or the Additional Capital Reserve Fund.