Common use of APPLICATION OF FUNDS IN EVENT OF DEFAULT Clause in Contracts

APPLICATION OF FUNDS IN EVENT OF DEFAULT. (a) Upon the occurrence and continuation of an Event of Default, the Special Servicer shall deposit, or cause to be deposited, in the applicable REO Property Account within one (1) Business Day after receipt all revenues received from any Foreclosed Collateral and all other amounts received by the Special Servicer or Servicer with respect to the Security Documents and the Underlying Collateral. All funds in the REO Property Account, in excess of the amount that, in the reasonable judgment of the Special Servicer, will be required to defray costs relating to the Foreclosed Collateral which this Indenture contemplates are payable from the REO Property Account, shall be remitted to the Collection Account at or before 3:00 p.m. (New York time) two Business Days prior to each Payment Date. (b) Money held by the Servicer hereunder shall be held in trust for the purposes for which it was paid, and shall be segregated from any other monies held by the Servicer, and may be deposited by the Servicer or Special Servicer under such general conditions as may be prescribed by law. (c) Payments made with funds obtained by the Special Servicer by liquidating any part of the Collateral shall not constitute a cure of a failure by the Issuer to make a payment for purposes of Section 5.1 hereof unless the Event of Default relating thereto is waived in accordance with Section 5.13.