Common use of Deposit of Insurance Premiums Clause in Contracts

Deposit of Insurance Premiums. The FCRHA, by written notice, may at any time after the occurrence and during the continuance of an Event of Default hereunder, require Tenant to deposit on the first (1st) day of each calendar month with the Depository an amount sufficient to pay the annual premiums for insurance required to be carried by Tenant hereunder when the same shall become due and payable, provided however, if an Event of Default exists due to Tenant’s failure to pay insurance premiums when due and as to which failure the FCRHA may (a) require payment to be made on demand or (b) pay the same, the FCRHA may at any time after such Event of Default has occurred and is continuing, pay such insurance premiums, whereupon Tenant shall be obligated to reimburse the FCRHA therefor as Additional Costs. Notwithstanding anything in this Article 7 to the contrary, in the event that a Mortgagee (provided such Mortgagee is an Institutional Lender) requires Tenant to deposit funds to insure payment of insurance premiums, and any amount so deposited by Tenant with such Mortgagee shall be credited against the amount, if any, which Tenant would otherwise be required to deposit under this Section 7.03; provided further, Tenant shall send notice to the FCRHA of such requirement with evidence reasonably satisfactory to the FCRHA of Tenant’s compliance with such requirement.