Common use of Failure of Lender to Fund Clause in Contracts

Failure of Lender to Fund. 8.1 If Lender fails to timely fund to Borrower after Borrower has complied with paragraph 1.1 above and has complied with all other provisions established therein the Lender failing to provide funds or failing to timely provide funds shall be a Lender default of this Loan Agreement (“Lender Default”). 8.2 Immediately upon a Lender Default the security interest in the Collateral provided to Lender under paragraph 1.6 above and perfected by any other documents, instruments or filings shall immediately cease and terminate without further action by Borrower and Lender shall forfeit any origination fee and incur fees, payable to Borrower, of $5,000.00 per day until paid without any action by Borrower. Lender shall have five (5) calendar days after receiving written notice from Borrower of a Lender Breach to cure such breach. If Lender cures any and all such breaches specified in Borrower’s written notice, within the 5-day cure period, the security interest in the Collateral provided under paragraph 1.6 above and perfected by any other documents, instruments or filings shall immediately be reinstated without further action of either Borrower or Lender.