Common use of Escrows and Reserves Clause in Contracts

Escrows and Reserves. If Senior Lender is collecting payments from Borrower to be escrowed for the payment of real estate taxes, assessments, insurance premiums, and like charges or to set up a special purpose reserve fund, THDA shall not, separately, require payments from Borrower to be escrowed for such purposes, provided the escrow or reserve being administered by Senior Lender is reasonably acceptable to THDA and is being funded in an amount approved by THDA. Senior Lender and Borrower acknowledge and agree that, except as provided in this Section 145, THDA’s prior written consent, which shall not be unreasonably withheld, is required before funds may be disbursed from any operating reserve and/or replacement reserve or any such other, similar reserve, however, Borrower may shall obtain the consent of THDA to any such disbursement before requesting disbursements from the Senior Lender. So long as there is no default under the Loan Documents, Senior Lender may disburse funds for real estate taxes and insurance premiums for the Property as and when the same become due without THDA’s consent. If Senior Lender stops collecting some or any escrow payments from Borrower before the THDA Loan has been paid in full, THDA shall have the immediate right to require the establishment of any such escrow or reserve. If the Senior Loan is paid in full before the THDA Loan is paid in full and if the Senior Lender is holding any escrow or reserve amounts at such time, it shall promptly transfer the balance of any such escrow or reserve to THDA or its designee. [ADD THIS SENTENCE IF HUD INSURANCE IS INVOLVED: Upon default under the Senior Loan documents and to the extent permitted by the Senior Loan Documents, the Senior Lender may apply the balances of the escrow and reserve accounts to reduce the balance of the Senior Loan.]

Escrows and Reserves. If Senior Lender is collecting payments from Borrower to be escrowed for the payment of real estate taxes, assessments, insurance premiums, and like charges or to set up a special purpose reserve fund, THDA shall not, separately, require payments from Borrower to be escrowed for such purposes, provided the escrow or reserve being administered by Senior Lender is reasonably acceptable to THDA and is being funded in an amount approved by THDA. Senior Lender and Borrower acknowledge and agree that, except as provided in this Section 14515, THDA’s prior written consent, which shall not be unreasonably withheld, is required before funds may be disbursed from any operating reserve and/or replacement reserve or any such other, similar reserve, however, Borrower shall may shall obtain the consent of THDA to any such disbursement before requesting disbursements from the Senior Lender. So long as there is no default under the Loan Documents, Senior Lender may disburse funds for real estate taxes and insurance premiums for the Property as and when the same become due without THDA’s consent. If Senior Lender stops collecting some or any escrow payments from Borrower before the THDA Loan has been paid in full, THDA shall have the immediate right to require the establishment of any such escrow or reserve. If the Senior Loan is paid in full before the THDA Loan is paid in full and if the Senior Lender is holding any escrow or reserve amounts at such time, it shall promptly transfer the balance of any such escrow or reserve to THDA or its designee. [ADD THIS SENTENCE IF HUD INSURANCE IS INVOLVED: Upon default under the Senior Loan documents and to the extent permitted by the Senior Loan Documents, the Senior Lender may apply the balances of the escrow and reserve accounts to reduce the balance of the Senior Loan.]

Escrows and Reserves. If Senior Lender Upon request of Lxxxxx and upon and after the occurrence of an Event of Default, Grantor will without further demand deposit with Lender, in addition to the required installments of principal and/or interest due under the terms of the Note, monthly until the Note is collecting payments from Borrower paid in full a sum equal to all Taxes next due on the Property (all as estimated by the Lender), divided by the number of months to elapse before one month prior to the date when such Taxes will become delinquent. Such deposits and escrow or reserve accounts: (1) shall accrue interest at Lender’s regular savings rates; (2) shall be escrowed used, subject to the provisions of this Section, for the payment of real estate taxes, assessments, insurance premiums, Taxes on the Property next due and like charges or to set up payable when they become due; and (3) shall not be commingled with other funds of Lender and Lender shall establish a special purpose reserve fund, THDA shall not, separately, require payments from Borrower to be escrowed separate account for such purposes, provided the deposits and escrow or reserve being administered by Senior Lender is reasonably acceptable to THDA accounts. All such deposits and is being funded in an amount approved by THDA. Senior Lender and Borrower acknowledge and agree that, except as provided in this Section 145, THDA’s prior written consent, which shall not be unreasonably withheld, is required before funds may be disbursed from any operating reserve and/or replacement reserve or any such other, similar reserve, however, Borrower may shall obtain the consent of THDA to any such disbursement before requesting disbursements from the Senior Lender. So long as there is no default under the Loan Documents, Senior Lender may disburse funds for real estate taxes and insurance premiums for the Property as and when the same become due without THDA’s consent. If Senior Lender stops collecting some or any escrow payments from Borrower before the THDA Loan has been paid in full, THDA shall have the immediate right to require the establishment of any such escrow or reserve. If the Senior Loan is paid in full before the THDA Loan is paid in full and if the Senior Lender is holding any escrow or reserve amounts at such time, it shall promptly transfer the balance of any such escrow or reserve to THDA or its designee. [ADD THIS SENTENCE IF HUD INSURANCE IS INVOLVED: Upon default under the Senior Loan documents and to the extent permitted by the Senior Loan Documents, the Senior Lender may apply the balances of the escrow and reserve accounts shall be applied by the Lender, provided no Event of Default has occurred and is continuing, to reduce the balance payment of Taxes due on the Property. Payments shall be made in the fiscal year designated by Grantor, provided sufficient funds are available and such Taxes are not delinquent. If the sums so deposited are insufficient to pay any such amounts for any period when the same shall become due and payable, the Grantor shall on demand deposit such additional funds as may be necessary to pay such amounts in full. If the sums so deposited exceed the amount required to pay such amounts for any year, the excess shall be credited to a subsequent deposit or deposits required hereunder. Lender may, at its option, without being required to do so, apply: (i) any monies at the time on deposit or in escrow or reserve accounts first pursuant to the foregoing provisions of this Section; and (ii) any deposits or escrow or reserve funds and any payments by Grantor, on any of Grantor’s obligations herein contained or obligations under the Note or Loan Agreement, in such order and manner as the Lender may elect. When the Indebtedness secured hereby has been fully paid, any remaining deposits or escrow or reserve funds shall be paid to Grantor or to the then owner or owners of the Senior LoanProperty. Such deposits and escrow and reserve accounts are hereby pledged as additional security for the Indebtedness hereunder and shall be irrevocably applied by the Lender for the purposes for which made hereunder and shall not be subject to the direction or control of the Grantor; provided, however, that the Lender shall not be liable for any failure to apply to the payment of such amounts unless Grantor, provided no Event of Default has occurred and is continuing, shall have requested the Lender in writing to make application of such funds to the payment of the particular amounts for payment of which they were deposited, escrowed or reserved, accompanied by the bills for the same. Lender shall not be liable for any act or omission taken in good faith or pursuant to the instruction of any party, and shall be liable only for its gross negligence or willful misconduct. Lender shall have the right to make any such payment for Taxes or other amounts for which funds are held in escrow or reserve hereunder unless any such amount is then being contested by Grantor in accordance with this Mortgage, in which event, as the case may be, Lender shall make such payment under protest in the manner prescribed by law or shall withhold such payment, provided, however, that the provisions of this Mortgage must be complied with by Grantor, as the case may be. In the event such contest shall or might result in interest penalty or other charges, Grantor shall likewise deposit monthly pro-rata the amount of any such interest, penalty or additional charge.]