Discretionary Funding Advances. Pursuant to Section 5.3 of the LLC Operating Agreement, the Manager may make, at its discretion, Discretionary Funding Advances from its own funds to the extent there are insufficient funds in the Collection Account and the Working Capital Reserve with which to fund any Funding Draw permitted pursuant to any Loan Documents, which Discretionary Funding Advances are to be designated as applicable only to the Loan for which any Funding Draw is funded. Any Discretionary Funding Advances are to be deposited into the Collection Account from which the funds will be available to fund such Funding Draw.
Discretionary Funding Advances. (a) In the event there are insufficient funds in the Collection Account and no funds in the Working Capital Reserve Account in excess of the Working Capital Reserve Floor (after use of all available funds from each such source) to fund Permitted Development Expenses with respect to specific Assets, the Manager may, in its discretion, make an advance to the Company (a “Discretionary Funding Advance”), which Discretionary Funding Advance shall be reimbursable (and shall accrue interest as set forth herein) only to the extent used exclusively for the applicable Permitted Development Expenses for such specified Assets. In no event may Discretionary Funding Advances be used for payment of any Working Capital Expenses. The proceeds of Discretionary Funding Advances shall be deposited into the Collection Account for disbursement therefrom for the payment of the applicable Permitted Development Expenses. All Discretionary Funding Advances, together with a detailed statement of the sources and uses thereof (which, to the extent of reimbursement rights against an applicable Borrower or Obligor, shall be broken out by the reimbursable and unreimbursable portions thereof) and description of the allocation to the Assets for which such Discretionary Funding Advance was made, shall be reflected in the Monthly Report with respect to the calendar month during which the relevant Discretionary Funding Advance was made. Notwithstanding anything to the contrary herein or in any other Transaction Document, any amounts disbursed or advanced by the Company in respect of Discretionary Funding Advances made by the Manager to the Company shall be disbursed or advanced in accordance herewith on behalf of the Company and not on behalf of the Manager in its individual capacity. The Manager agrees and acknowledges that the making of a Discretionary Funding Advance to the Company, and the advancing or disbursing of such amount by the Company in respect of an Asset, shall not create (i) a Lien in favor of, or for the benefit of, the Manager in respect of such Asset, or (ii) a participation interest or other rights in favor of, or for the benefit of, the Manager in respect of any existing Lien held by or on behalf of the Company relating to such Asset. Discretionary Funding Advances shall not be regarded as additional Capital Contributions.
(b) Discretionary Funding Advances shall bear interest on the outstanding principal amount thereof at a rate per annum equal to the LIBOR Rate in effec...
Discretionary Funding Advances. Pursuant to Section 5.4 of the LLC Operating Agreement, the Manager may make, at its discretion, Discretionary Funding Advances from its own funds to fund Permitted Vertical Completion Expenses on an Asset-by-Asset basis to the extent that funds are not available in the Collection Account for such purpose, the Working Capital Reserve has reached the Working Capital Reserve Floor and no funds remain available for drawing under the Advance Facility. All Discretionary Funding Advances are to be designated as applicable only to the Asset to which such Discretionary Funding Advance relates. Any Discretionary Funding Advances are to be deposited into the Collection Account, from which the funds will be available to be disbursed to the Borrower (with respect to the Collateral) or used by the Company (with respect to the Acquired REO Property), as applicable, to pay the Permitted Vertical Completion Expenses relating to the specified Asset.
Discretionary Funding Advances. Pursuant to Section 5.4 of the LLC Operating Agreement, the Manager may make, at its discretion, Discretionary Funding Advances from its own funds to fund (i) Permitted Vertical Completion Expenses and (ii) Permitted Horizontal Development Expenses, each on an Asset-by-Asset basis to the extent that funds are not available in the Collection Account for such purpose and the balance on deposit in the 6 2011-SIP-2 Structured Transaction Custodial and Paying Agency Agreement Version 3.1 EXECUTION VERSION Working Capital Reserve Account has been reduced to (or below) the Working Capital Reserve Floor. All Discretionary Funding Advances are to be designated as applicable only to the Asset to which such Discretionary Funding Advance relates. Any Discretionary Funding Advances are to be deposited into the Collection Account, from which the funds will be available to be disbursed to the Borrower (with respect to the Collateral) or used by the Company (with respect to the Acquired REO Property), as applicable, to pay the Permitted Vertical Completion Expenses or Permitted Horizontal Development Expenses, in each case relating to the specified Asset.
Discretionary Funding Advances. Pursuant to Section 5.4 of the LLC Operating Agreement, the Manager may make, at its discretion, Discretionary Funding Advances from its own funds to fund Permitted Vertical Completion Expenses on an Asset-by-Asset basis to the extent that funds are not available in the Collection Account for such purpose, the Working Capital Reserve has reached the Working Capital Reserve Floor and no funds remain available for drawing under the Advance Facility. All Discretionary Funding Advances are to be designated as applicable only to the Asset to which such Discretionary Funding Advance relates. Any Discretionary Funding Advances are to be deposited into the Collection Account, from which the funds will be available to be disbursed to the Borrower (with respect to the Collateral) or used by the Company (with respect to the Acquired REO Property), as applicable, to pay the Permitted Vertical Completion Expenses relating to the specified Asset. Notwithstanding anything to the contrary herein or in any other Transaction Document, any amounts disbursed or advanced by the Company in respect of Discretionary Funding Advances made by the Manager to the Company shall be disbursed or advanced in accordance with Section 5.4 of the LLC Operating Agreement on behalf of the Company and not on behalf of the Manager in its individual capacity. The Manager agrees and acknowledges that the making of a Discretionary Funding Advance to the Company, and the advancing or disbursing of such amount by the Company in respect of an Asset, shall not create (i) a mortgage, lien, security interest or other encumbrance in favor of, or for the benefit of, the Manager in respect of such Asset, and (ii) a participation interest or other rights in favor of, or for the benefit of, the Manager in respect of any existing mortgage, lien or security interest held by or on behalf of the Company relating to such Asset.
