Common use of Borrower’s Deposit Clause in Contracts

Borrower’s Deposit. If Lender’s Architect or Lender (based upon information provided by Lender’s Architect) at any time determines that for any reason the undisbursed proceeds of the Loan shall be less than the amount necessary, in Lender’s reasonable judgment, to pay for all work done and to be done and all other costs and expenses for completion of construction of the Project as shown by the then current Project Budget, and Borrower’s undertakings hereunder, including, without limitation, interest on the Note; as a condition precedent to Lender’s obligation to disburse any further proceeds of the Loan, Borrower will, within ten (10) days after written request by Lender, deposit any such deficiency in cash (or other security satisfactory to Lender) with Lender, which deposit shall first be exhausted before any further disbursement of the Loan shall be made. Any amounts deposited by Borrower hereunder to pay any such deficiency shall be deposited in a cash collateral account with Lender, subject to a security interest in favor of Lender, shall not bear interest and shall be applied by Lender as Lender shall direct to pay costs and expenses in connection with the Project. If an Event of Default shall occur and be continuing, Lender, in addition to all other rights which it may have, shall have the unconditional right, at its option, to apply, in whole or in part, any amounts deposited by Borrower with Lender with respect to such deficiency, to the payment of the Loan in such order and priority as Lender shall deem appropriate.

Borrower’s Deposit. If Lender’s Architect or Lender (based upon information provided by Lender’s Architect) at any time determines that for any reason the undisbursed proceeds of the Loan shall be less than the amount necessary, in Lender’s reasonable judgment, to pay for all work done and to be done and all other costs and expenses for completion of construction of the Alpine Valley Project as shown by the then current Alpine Valley Project Budget, and Borrower’s undertakings hereunder, including, without limitation, interest on the Note; as a condition precedent to Lender’s obligation to disburse any further proceeds of the Loan, Borrower will, within ten (10) days after written request by Lender, deposit any such deficiency in cash (or other security satisfactory to Lender) with Lender, which deposit shall first be exhausted before any further disbursement of the Loan shall be made. Any amounts deposited by Borrower hereunder to pay any such deficiency shall be deposited in a cash collateral account with Lender, subject to a security interest in favor of Lender, shall not bear interest and shall be applied by Lender as Lender shall direct to pay costs and expenses in connection with the Alpine Valley Project. If an Event of Default shall occur and be continuing, Lender, in addition to all other rights which it may have, shall have the unconditional right, at its option, to apply, in whole or in part, any amounts deposited by Borrower with Lender with respect to such deficiency, to the payment of the Loan in such order and priority as Lender shall deem appropriate.

Borrower’s Deposit. If Lender’s Architect or Lender (based upon information provided by Lender’s Architect) at any time, or from time to time, Lender, in the exercise of its reasonable discretion, determines that for any reason the total of the remaining undisbursed Loan proceeds are less than one hundred (100%) percent of the costs of completing the Work and all fees, charges, costs and contingencies which are the obligation of Borrower pursuant to the terms of the Loan Papers, then Lender may demand in writing that the amount which, when added to the undisbursed Loan proceeds, will be sufficient to complete the Work and satisfy such obligations, shall be less than deposited with Lender to ensure such completion and the amount necessary, in Lender’s reasonable judgment, to pay for all work done and to be done and all other costs and expenses for completion performance of construction of the Project as shown by the then current Project Budget, and Borrower’s undertakings hereunder, including, without limitation, interest on the Note; as a condition precedent to Lender’s obligation to disburse any further proceeds of the Loan, such obligations. Borrower willshall, within ten (10) days after written request demand by Lender, deposit any with Lender the amount of such deficiency as determined by Lender in cash (or other security satisfactory to Lender) an interest bearing account. Until such funds have been deposited with Lender, which deposit Lender shall first be exhausted before have no duty to make any further disbursements of any proceeds of the Loan. All funds so deposited by Borrower pursuant to this Section 2.6 shall be disbursed by Lender in the manner provided herein for disbursement of the Loan shall be madeproceeds and in such order as Lender may select. Any amounts deposited by Borrower hereunder All such funds are hereby assigned to pay any such deficiency shall be deposited in a cash collateral account with LenderLender as additional security for the Indebtedness, subject to a security interest in favor of Lender, shall not bear interest and shall may be applied by in satisfaction of Borrower's obligations to Lender as Lender shall direct to pay costs and expenses in connection with on the Project. If occurrence of an Event of Default shall occur and be continuing, Lender, in addition to all other rights which it may have, shall have the unconditional right, at its option, to apply, in whole or in part, any amounts deposited by Borrower with Lender with respect to such deficiency, to the payment of the Loan in such order and priority as Lender shall deem appropriateDefault.