Common use of Debt Service Reserve Account Clause in Contracts

Debt Service Reserve Account. At no time during the term of the Loan shall the balance in the Debt Service Reserve Account be permitted to drop below three (3) months of the Monthly Debt Service Payment Amount in which case Borrower shall, within three (3) Business Days following receipt of written notice from Lender, deposit funds into the Debt Service Reserve Account to replace all funds previously disbursed from the Debt Service Reserve Account. Lender shall, provided no Event of Default is continuing on the applicable Payment Date on which a Debt Service Shortfall shall exist, release a portion of the funds in the Debt Service Reserve Account to Lender in the amount of the Debt Service Shortfall in order to pay Lender the Debt Service Shortfall on the Payment Date. Notwithstanding the foregoing, Borrower expressly acknowledges and agrees that in the event that on any day on which a Debt Service payment is due and payable (a) an Event of Default has occurred and is continuing, or (b) the Debt Service Payment Amount exceeds the funds then on deposit in the Debt Service Reserve Account, Borrower shall remain liable for the payment of all Debt Service amounts that are due and payable notwithstanding the existence of any Debt Service Reserve Account.

Debt Service Reserve Account. At no time during the term of the Loan shall the balance in the Debt Service Reserve Account be permitted to drop below three (3) months of the Monthly Debt Service Payment Amount in which case Borrower shall, within three (3) Business Days following receipt of written notice from Lender, deposit funds into the Debt Service Reserve Account to replace all funds previously disbursed from the Debt Service Reserve Account. Lender shallmay, in its sole and absolute discretion, upon written request to Lender, and provided no Event of Default is continuing on the applicable Payment Date on which a Debt Service Shortfall shall exist, release a portion of the funds in the Debt Service Reserve Account to Lender in the amount of the Debt Service Shortfall in order to pay Lender the Debt Service Shortfall on the Payment Date. Notwithstanding the foregoing, Borrower expressly acknowledges and agrees that in the event that on any day on which a Debt Service payment is due and payable (a) an Event of Default has occurred and is continuing, or (b) the Debt Service Payment Amount exceeds the funds then on deposit in the Debt Service Reserve Account, Borrower shall remain liable for the payment of all Debt Service amounts that are due and payable notwithstanding the existence of any Debt Service Reserve Account.