Common use of General Provisions Regarding Reserves Clause in Contracts

General Provisions Regarding Reserves. (1) All funds deposited in the Reserves shall be held by Lender, without interest, and may be commingled with Lender's general funds. (2) As additional security for the Loan, Borrower hereby grants to Lender a first-priority security interest in all funds deposited in the Reserves, and any interest earned thereon. In addition to the rights and remedies herein set forth, Lender shall have all of the rights and remedies with respect to the funds in the Reserves available to a secured party at law or in equity, including, without limitation, the rights of a secured party under the Uniform Commercial Code, as if such rights and remedies were fully set forth herein. (3) This Agreement shall constitute a security agreement for purposes of the Uniform Commercial Code and other applicable law. Borrower acknowledges and agrees that the funds in the Reserves are subject to the sole dominion, control and discretion of Lender, its authorized agents or designees, subject to the terms hereof, and neither Borrower nor any other Borrower Party shall have any right of withdrawal with respect to any Reserve funds except with the prior written consent of Lender or as otherwise provided herein. The Reserve funds shall not constitute trust funds and may be commingled with other monies held by Lender. (4) While an Event of Default or a Potential Default exists, Lender shall have no obligation to disburse any funds from the Reserves, and while an Event of Default exists, Lender shall be entitled, without notice to Borrower or any other Borrower Party, to apply any funds in the Reserves to satisfy Borrower's obligations under the Loan Documents in such order and manner as Lender shall determine, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. (5) The insufficiency of Reserve funds on deposit with Lender shall not absolve Borrower of the obligation to make any payments, as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event or circumstance whatsoever.

General Provisions Regarding Reserves. (1) All funds deposited in the Reserves shall (so long as no Event of Default has occurred and is continuing) be held by LenderAdministrative Agent, without interestwith interest as provided in Section 3.2(2) below, and may be commingled with Lender's Administrative Agent’s general funds. . To secure the Loans, Borrowers hereby grant to Administrative Agent (2on behalf of the Lenders) As additional security for the Loan, Borrower hereby grants to Lender a first-first priority security interest in all funds deposited in the Reserves, and any interest earned thereon. In addition to the rights and remedies herein set forth, Lender shall have all of the rights and remedies with respect to the funds in the Reserves available to a secured party at law or in equity, including, without limitation, the rights of a secured party under the Uniform Commercial Code, as if such rights and remedies were fully set forth herein. (3) This Agreement shall constitute a security agreement for purposes of the Uniform Commercial Code and other applicable law. Borrower acknowledges and agrees that the funds in the Reserves are subject to the sole dominion, control and discretion of Lender, its authorized agents or designees, subject to the terms hereof, and neither Borrower nor any other Borrower Party shall have any right of withdrawal with respect to any Reserve funds except with the prior written consent of Lender or as otherwise provided herein. The Reserve funds shall not constitute trust funds and may be commingled with other monies held by Lender. (4) While an Event of Default or a Potential Default exists, Lender Administrative Agent shall have no obligation to disburse any funds from the Reserves, and while an Event of Default exists, Lender Administrative Agent shall be entitled, without notice to Borrower or any other Borrower PartyBorrowers, to apply any funds in the Reserves to satisfy Borrower's Borrowers’ obligations under the Loan Documents in such order and manner as Lender Administrative Agent shall determinedetermine in its sole discretion, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by LenderAdministrative Agent. (52) The insufficiency of Reserve funds on deposit with Lender All monies held in Reserves which are expressly designated elsewhere in this Agreement as interest‑bearing (each, an “Interest‑Bearing Reserve”) shall not absolve Borrower be deposited into interest‑bearing accounts of the obligation type customarily maintained by Administrative Agent or its servicing agent for the investment of (and may be commingled with) similar reserves or Administrative Agent’s general funds, which accounts may not yield the highest interest rate then available. Each Interest‑Bearing Reserve shall be held in an account in Administrative Agent’s name (or such other account name as Administrative Agent may elect) at a financial institution or other depository selected by Administrative Agent (or its servicer) in its sole discretion (collectively, the “Depository Institution”). Borrowers shall earn no more than an amount of interest on each Interest‑Bearing Reserve equal to make any paymentsan amount determined by applying to the average monthly balance of such Interest‑Bearing Reserve the quoted interest rate for the Depository Institution’s money market savings account, as such rate is determined from time to time (such allocated amount being referred to as “Borrowers’ Interest”). Administrative Agent or its Depository Institution shall be entitled to report under Borrowers’ Federal tax identification number the Borrowers’ Interest on each Interest‑Bearing Reserve. If the Depository Institution does not have an established money market savings account (or if an interest rate for such account cannot otherwise be determined in connection with the deposit of each Interest‑Bearing Reserve), a comparable interest rate quoted by the Depository Institution and when due pursuant acceptable to this Agreement and Administrative Agent (or its servicer) in its discretion shall be used. The amount of Borrowers’ Interest allocated to each Interest‑Bearing Reserve shall be added to the other Loan Documentsbalance in such Interest‑Bearing Reserve, and such obligations shall be separate disbursed for payment of the items for which such Interest‑Bearing Reserve is to be disbursed. Any interest earned above the Borrowers’ Interest shall be retained by Administrative Agent as compensation for its administration and independent, and not conditioned on any event or circumstance whatsoeverinvestment of each Interest‑Bearing Reserve.