Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for such charges.
Appears in 2 contracts
Samples: Loan Agreement (Equity Inns Inc), Loan Agreement (Equity Inns Inc)
Impounds. 5.4.1 (a) In connection with a permitted assumption or transfer of the Loan pursuant to Subsection 7.1(c), and in order to assure compliance with Borrower’s obligations pursuant to Section 7.2, but not in lieu of such obligations, Borrower (or its permitted successor) shall deposit with Lender, monthlymonthly on each Payment Date (commencing on the first Payment Date following Lender’s written request), (i) one-twelfth (1/12th) of the annual charges for Taxes that Lender estimates will (collectively, “Impounds”). Each deposit shall be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required an amount reasonably determined by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments that will be sufficient (when combined with other monthly installments) to make each full payment of such payments all Impounds thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such paymentsImpounds. Deposits shall be made on the basis of the Impounds which have been fixed for the then current year; provided, however, that prior to the date that such Impounds have been so fixed, deposits shall be made on the basis of Lender's ’s reasonable estimate from time to time of the charges amount of Impounds for the then current year (after giving effect to any recalculation or reassessment or, at Lender's ’s election, on the basis of the charges Impounds for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall not be construed as trust funds, may be held by Lender, without interest, and may be commingled with Lender's ’s general funds. Borrower Parties (including any permitted successor to Borrower Parties) hereby grants to Lender a security interest in all funds Impounds so deposited with Lender for the purpose of securing the LoanObligations. While Upon the occurrence of an Event of Default existsDefault, the funds all Impounds deposited with Lender may be applied in payment of the charges Impounds for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of LenderObligations, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower Borrower’s permitted successor shall furnish Lender with bills for the charges for which such deposits are required Impounds at least thirty (30) days prior to the date on which the charges such Impounds first become payable. If at any time Lender determines that the amount on deposit with Lender, together with amounts the monthly installments to be deposited by Borrower Borrower’s permitted successor before such charges the Impounds are payable, is are insufficient to pay such chargesthe Impounds, Borrower Borrower’s permitted successor shall deposit any deficiency with Lender immediately upon demandwithin the Demand Period. Provided no Event of Default has occurred, Lender shall pay such charges the Impounds when the amount on deposit with Lender is sufficient to pay such charges Impounds and Lender has received a xxxx for such chargesImpounds.
Appears in 1 contract
Samples: Fixed Rate Term Loan Agreement (Mission West Properties Inc)
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "“Tax and Insurance Escrow Fund"”). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's ’s estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's ’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's ’s general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for such charges.
Appears in 1 contract
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during annual charges for real estate taxes, assessments and similar charges relating to the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund")Projects. At or before the initial advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All Unless Borrower and Lender hereafter enter into a "blocked account" or similar deposit agreement, all funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for bill xxx such charges.
Appears in 1 contract
Impounds. 5.4.1 Borrower shall deposit with Senior Lender, monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due datesannual charges for ground or other rent, if any, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order real estate taxes, assessments and similar charges relating to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund")each Property. At or before the advance of the LoanInitial Advance or an Advance for an Additional Property, Borrower shall deposit with Senior Lender a sum of money which which, together with the monthly installments installments, will be sufficient to make each of such payments payments, with respect to the Initial Property or such Additional Properties, as the case may be, at least thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Senior Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Senior Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Senior Lender, without interest, and may not be commingled with Senior Lender's general funds, excluding, however, any other funds held by Senior Lender with respect to any of the other Properties. Borrower hereby grants to Senior Lender a security interest in all funds so deposited with Senior Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Senior Lender, as Senior Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Senior Lender. Borrower shall furnish to Senior Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. Provided sufficient funds are available and allocated to pay such charges, Senior Lender shall pay same, and shall as instructed by Borrower take advantage of any available discounts for early payment. If at any time the amount on deposit with Senior Lender, together with amounts to be deposited by Borrower or any applicable Subsidiary before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Senior Lender immediately upon demand. Senior Lender shall pay such charges when the amount on deposit with Senior Lender is sufficient to pay such charges and Senior Lender has received a xxxx bill for such charges.. ARTICLE 4
Appears in 1 contract
Impounds. 5.4.1 Borrower shall deposit into a reserve with Lender, monthlymonthly on the first day of each month, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during annual charges for ground or other rent, if any (but only if such rent is due less often than monthly or, regardless of payment frequency, if Borrower has failed to make one or more of such payments), insurance premiums and real estate taxes, assessments and similar charges relating to the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund")Projects. At or before the initial advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's ’s estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's ’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's ’s general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for such charges.
Appears in 1 contract
Samples: Loan Agreement (KBS Strategic Opportunity REIT, Inc.)
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due datesannual charges for ground or other rent, if any, and real estate taxes, assessments and similar charges (iibut excluding insurance) one-twelfth of relating to the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund")Project. At or before the initial advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's good faith estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall promptly pay such charges when prior to the due date thereof provided the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx bill for such charges.
Appears in 1 contract
Samples: Loan Agreement (Angeles Partners Xi)
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth (1/12th) of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "Tax and Insurance Escrow FundTAX AND INSURANCE ESCROW FUND"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interestwith interest in the manner set forth in Section 2.4(c) hereof, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for bill xxx such charges.
Appears in 1 contract
Impounds. 5.4.1 Upon the occurrence and during the continuance of an Impound Trigger Event, Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth (1/12th) of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "“Tax and Insurance Escrow Fund"”). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's ’s estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's ’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, Lender with interest in the manner set forth in Section 2.4(c) hereof and may be commingled with Lender's ’s general fundsfunds and Lender shall keep appropriate records of Borrower’s Interest earned on the Tax and Insurance Escrow Fund. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall shall, to the extent deposits are otherwise required by this Section 3.4, deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx bxxx for such charges.
Appears in 1 contract
Samples: Loan Agreement (Winston Hotels Inc)
Impounds. 5.4.1 Borrower and Operating Lessee shall deposit with Lender, monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during annual charges for real estate taxes, assessments and similar charges relating to the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund")Projects. At or before the initial advance of the Loan, Borrower and Operating Lessee shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without Lender in an interest, -bearing account controlled by Lender and may be commingled with Lender's general funds. Borrower and Operating Lessee hereby grants grant to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower and Operating Lessee shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower or Operating Lessee before such charges are payable, is insufficient to pay such charges, Borrower or Operating Lessee shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx bill for such charges. Pursuant to Section 8.2, Borrower and Operatinx Xxssee unconditionally and irrevocably covenant and agree to pay all real estate taxes, assessments, and similar charges on the Projects, prior to the delinquency thereof.
Appears in 1 contract
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during annual charges for real estate taxes, assessments and similar charges relating to the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund")Projects. At or before the initial advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All Unless Borrower and Lender hereafter enter into a "blocked account" or similar deposit agreement, all funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for bill xxx such charges. Pursuant to Section 8.2, Borrower unconditionally and irrevocably covenants and agrees to pay all real estate taxes, assessments, and similar charges on the Projects, prior to the delinquency thereof. Notwithstanding the foregoing, Borrower shall not be obligated to make deposits with Lender under this Section 3.4 if (a) the Projects are producing a Net Operating Income which is generating a Cash on Cash Return of at least 14.25% and a Debt Service Coverage of at least 1.75:1, (b) Borrower shall have provided Lender with evidence that all real estate taxes, assessments and similar charges relating to the Projects previously have been paid prior to the delinquency thereof, (c) there exists no Event of Default or Potential Default, and (d) both Borrower and ARC continue to be personally and corporately liable for payment of such taxes, assessments and charges.
Appears in 1 contract
Impounds. 5.4.1 (a) At all times during any Impound Period and as a condition to any permitted assumption or transfer of the Loan pursuant to Section 8.3, in order to assure compliance with Borrower’s obligations pursuant to Section 9.1 of this Agreement, but not in lieu of such obligations, Borrower shall deposit with Lender, monthlymonthly on each Payment Date (commencing on the first Payment Date following Lender’s written notice of the commencement of an Impound Period), (i) one-twelfth (1/12th) of the annual charges for Taxes that Lender estimates will (collectively, “Impounds”). Notwithstanding anything to the contrary set forth in the preceding sentence, each deposit (including, without limitation, any deposit made at the commencement of any Impound Period) shall be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required an amount determined by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments that will be sufficient (when combined with other monthly installments) to make each full payment of such payments all Impounds thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such paymentsImpounds. Deposits shall be made on the basis of Lender's ’s reasonable estimate from time to time of the charges amount of Impounds for the current year (after giving effect to any recalculation or reassessment or, at Lender's ’s election, on the basis of the charges Impounds for the prior year, with adjustments when the charges Impounds are fixed for the then current year). All funds so deposited shall not be construed as trust funds, may be held by Lender, without interest, and may be commingled with Lender's ’s general funds. Borrower hereby grants to Lender a security interest in all funds Impounds so deposited with Lender for the purpose of securing the LoanObligations. While Upon the occurrence of an Event of Default existsDefault, the funds all Impounds deposited with Lender may be applied in payment of the charges Impounds for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of LenderObligations, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required Impounds at least thirty (30) days prior to the date on which the charges such Impounds first become payable. If at any time Lender determines that the amount on deposit with Lender, together with amounts the monthly installments to be deposited by Borrower before such charges the Impounds are payable, is are insufficient to pay such chargesthe Impounds, Borrower shall deposit any deficiency with Lender immediately upon demandwithin the Demand Period. Provided no Event of Default has occurred, Lender shall pay such charges the Impounds when the amount on deposit with Lender is sufficient to pay such charges Impounds and Lender has received a xxxx for such chargesImpounds.
Appears in 1 contract
Samples: Fixed Rate Term Loan Agreement (New England Realty Associates Limited Partnership)
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth (1/12th) of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "Tax and Insurance Escrow FundTAX AND INSURANCE ESCROW FUND"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx bill for such charges.
Appears in 1 contract
Impounds. 5.4.1 (a) Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender reasonably estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's reasonable estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall (a) be held by Lender, without interest, and may (b) be commingled with Lender's general funds, and (c) earn interest at available money market rates. Borrower hereby grants Any earnings on such funds shall be added to Lender and be a security interest in all funds so deposited with Lender for part of the purpose of securing the Loan. While an Event of Default exists, the funds deposited may Tax and Insurance Escrow Fund and shall be disbursed or applied in payment of the charges for which such funds have been deposited, or same manner and subject to the payment of the Loan or any other charges affecting the security of Lender, same terms as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount funds on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when in the amount on deposit with Lender is sufficient to pay such charges Tax and Lender has received a xxxx for such charges.Insurance
Appears in 1 contract
Impounds. 5.4.1 Upon the occurrence and during the continuance of a Trigger Event, Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "Tax and Insurance Escrow FundTAX AND INSURANCE ESCROW FUND"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx bill for such charges.
Appears in 1 contract
Samples: Loan Agreement (Equity Inns Inc)
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth (1/12th) of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "Tax and Insurance Escrow FundTAX AND INSURANCE ESCROW FUND"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for such charges.
Appears in 1 contract
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, In the event Lessee fails on two (i2) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable occasions ------------- -------- during the next ensuing any consecutive twelve (12) months month period to make rental payments within ten (10) days of Lessee's receipt of written notice of such delinquency, or shall on two (2) occasions issue a check which is declined by Lessee's bank for insufficient funds, Lessor may require, by delivery of Notice thereof to Lessee, that Lessee pay all rent, real property taxes, and insurance expenses quarterly in advance for the balance of the Lease term, and that all such payments be made by cash, cashier's check or money order in lieu of Lessee's check. Acceptance of payment by check shall not be construed as a waiver of any such rights. The exercise of any rights under this paragraph shall not limit or otherwise affect Lessor's other rights and remedies under this Lease or by law. Such quarterly advance installment shall be payable on each January 1, April 1, July 1, and October 1 thereafter occurring during the Lease term in the amount of rent, real property tax and insurance expenses as estimated by Lessor which are payable by Lessee under the terms of this Lease. Such fund shall be established to accumulate with Lender sufficient funds insure payment when due, before delinquency, of any or all such rent, real property taxes and insurance premiums. If the amounts paid to Lessor by Lessee under the provisions of this paragraph are insufficient to discharge the obligations of Lessee to pay all such Taxes at least thirty real property taxes and insurance premiums as the same become due, Lessee shall pay to Lessor, within three (303) business days prior to their respective due datesafter Lessor's demand, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds such additional sums necessary to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year)obligations. All funds so deposited moneys paid to Lessor under this paragraph may be intermingled with other money of Lessor, shall be held by Lender, without not bear interest, and may be commingled with Lender's general fundsshall not create any trust relationship between Lessor and Lessee or any fiduciary duties on the part of Lessor to Lessee. Borrower hereby grants In the event of a default in the obligations of Lessee to Lender a security interest in all perform under this Lease, then any balance remaining from funds so deposited with Lender for paid to Lessor under the purpose provisions of securing this paragraph may, at the Loan. While an Event option of Default existsLessor, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of any monetary default of Lessee in lieu of being applied to the Loan or any other charges affecting payment of rent, real property tax and insurance premiums. Any excess payment by Lessee above the security amount of Lender, as Lender may elect, but no expenses payable by Lessee under this Lease to which Lessor applies amounts in such application fund shall be deemed to have been made by operation credited against next due installments of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges real property taxes and Lender has received a xxxx for such chargesinsurance premiums.
Appears in 1 contract
Samples: Industrial Lease (Valicert Inc)
Impounds. 5.4.1 (a) In connection with a permitted assumption or transfer of the Loan pursuant to Subsection 7.1(c), and in order to assure compliance with Borrower’s obligations pursuant to Section 7.2, but not in lieu of such obligations, Borrower (or its permitted successor) shall deposit with Lender, monthlymonthly on each Payment Date (commencing on the first Payment Date following Lender’s written request), (i) one-twelfth (1/12th) of the annual charges for Taxes that Lender estimates will (collectively, “Impounds”). Each deposit shall be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required an amount reasonably determined by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments that will be sufficient (when combined with other monthly installments) to make each full payment of such payments all Impounds thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such paymentsImpounds. Deposits shall be made on the basis of the Impounds which have been fixed for the then current year; provided, however, that prior to the date that such Impounds have been so fixed, deposits shall be made on the basis of Lender's ’s reasonable estimate from time to time of the charges amount of Impounds for the then current year (after giving effect to any recalculation or reassessment or, at Lender's ’s election, on the basis of the charges Impounds for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall not be construed as trust funds, may be held by Lender, without interest, and may be commingled with Lender's ’s general funds. Borrower Parties (including any permitted successor to Borrower Parties) hereby grants to Lender a security interest in all funds Impounds so deposited with Lender for the purpose of securing the LoanObligations. While Upon the occurrence of an Event of Default existsDefault, the funds all Impounds deposited with Lender may be applied in payment of the charges Impounds for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of LenderObligations, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower Borrower’s permitted successor shall furnish Lender with bills for the charges for which such deposits are required Impounds at least thirty (30) days prior to the date on which the charges such Impounds first become payable. If at any time Lender determines that the amount on deposit with Lender, together with amounts the monthly installments to be deposited by Borrower Borrower’s permitted successor before such charges the Impounds are payable, is are insufficient to pay such chargesthe Impounds, Borrower Borrower’s permitted successor shall deposit any deficiency with Lender immediately upon demandwithin the Demand Period. Provided no Event of Default has occurred, Lender shall pay such charges the Impounds when the amount on deposit with Lender is sufficient to pay such charges Impounds and Lender has received a xxxx bxxx for such chargesImpounds.
Appears in 1 contract
Samples: Fixed Rate Term Loan Agreement (Mission West Properties Inc)
Impounds. 5.4.1 (a) Subject to subsection (b) below, Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth (1/12th) of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "" Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for such charges.
Appears in 1 contract
Impounds. 5.4.1 Borrower shall deposit with -------- Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "Tax and Insurance Escrow FundTAX AND INSURANCE ESCROW FUND"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While The funds shall be held in Lender's name in a money market interest bearing account and may be commingled with Lender's own funds at financial institutions selected by Lender in its sole discretion. Interest earned on the funds shall be added back into the funds; provided, however, that Lender shall not be obligated to obtain any specified rate of return and Lender shall not be liable for any loss of principal, for which Borrower shall bear the full risk. Subject to Section 3.2, while an Event of Default existsis continuing, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required (i) at least thirty (30) days prior to the date on which the charges first become payable or (ii) if the Governmental Authority which issues such bills does not issue bills at least thirty (30) days prior to the date on which the charges first become payable, then within three (3) Business Days following Borrower's receipt of such bills from the Governmental Authority. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demandwithin three (3) Business Days after Borrower receives written notice of such deficiency. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for such charges.. ARTICLE 6
Appears in 1 contract
Samples: Loan Agreement (Winston Hotels Inc)
Impounds. 5.4.1 Borrower At Lender's option exercisable at any time during the term of the Loan, Borrowers shall deposit with Lender, monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due datesannual charges for ground or other rent, if any, and (ii) one-twelfth of real estate taxes, assessments and similar charges relating to the Insurance Premiums that Lender estimates will be payable Mortgaged Property, and for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund")premiums. At Lender's option , at or before the initial advance of the Loan, Borrower Borrowers shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower Borrowers hereby grants grant to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower Borrowers shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower Borrowers before such charges are payable, is insufficient to pay such charges, Borrower Borrowers shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx bill for such charges.
Appears in 1 contract
Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "“Tax and Insurance Escrow Fund"”). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money money, which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date date, any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's ’s estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's ’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without with interest, and may be commingled with Lender's ’s general funds. To the extent the earnings or interest on the amounts held by Lender for the Tax Escrow Fund exceed the required reserve requirements, Lender shall disburse such excess to Borrower within sixty (60) days following the end of each calendar year. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx bxxx for such charges.
Appears in 1 contract
Impounds. 5.4.1 Borrower shall deposit with Lenderor cause to be deposited into a separate segregated account (the "Tax and Insurance Escrow Account") to be maintained by the Borrower at the Depository Bank in the name of the Administrative Agent for the benefit of the Lenders, monthlymonthly on each Payment Date, (ia) one-twelfth (1/12th) of the Taxes that Lender the Administrative Agent estimates will be payable with respect to the Project during the next ensuing twelve (12) months in order to accumulate with Lender in the Tax and Insurance Escrow Account sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due datesany delinquency thereof or penalty thereon, and (iib) one-twelfth of the Insurance Premiums insurance premiums that Lender the Administrative Agent estimates will be payable during the next ensuing twelve (12) months for the renewal of the coverage afforded by the insurance policies required by Lender the Administrative Agent with respect to the Project upon the expiration thereof in order to accumulate with Lender in the Tax and Insurance Escrow Account sufficient funds to pay all such Insurance Premiums insurance premiums at least thirty (30) days prior to expiration (said the aggregate of the amounts in (ia) and (iib) above being hereinafter called referred to as the "Tax and Insurance Escrow FundReserve"). At or before the initial advance of the LoanLoans, Borrower shall deposit with Lender in the Tax and Insurance Escrow Account a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lenderthe Administrative Agent's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lenderthe Administrative Agent's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender the Administrative Agent (on behalf of the Lenders) a first priority security interest in all funds so deposited with Lender in the Tax and Insurance Escrow Account for the purpose of securing the LoanLoans. While an Event of Default exists, the funds deposited in the Tax and Insurance Escrow Account may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan Loans or any other charges affecting the security of Lenderthe Administrative Agent and the Lenders, as Lender the Administrative Agent may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lenderthe Administrative Agent. Borrower shall furnish Lender the Administrative Agent with (i) bills for the charges for which such deposits are required and (ii) a disbursement request in the form of Schedule 3.4 hereto executed by an officer of the Borrower's general partner at least thirty (30) days prior to the date on which the charges first become payable. Within ten (10) days after Administration Agent's receipt of the aforementioned bills and disbursement request, the Administrative Agent shall direct the Depository Bank to pay such charges in accordance with such disbursement request, provided that the Administrative Agent approves of the disbursement request within such ten (10) day period and the amount on deposit in the Tax and Insurance Escrow Account is sufficient to pay such charges, it being understood and agreed that the Depository Bank shall be responsible for the timing of the payment of such charges and that Borrower shall be solely responsible for any late charges, interest and penalties imposed as a result of any delinquency in such payments arising from any efforts on behalf of the Borrower to avoid making such payments significantly in advance of the due date therefor. If at any time the amount on deposit with Lenderin the Tax and Insurance Escrow Account, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender in the Tax and Insurance Escrow Account immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for such charges.
Appears in 1 contract
Impounds. 5.4.1 (a) If the Tenant under the NYC Leases fails to pay when due under the NYC Leases any amount of Taxes required to be paid by such Tenant under the NYC Leases, then following Lender’s written request (issued in Lender’s discretion) and in order to assure compliance with Borrower's obligations pursuant to Section 9.1, but not in lieu of such obligations, Borrower shall exercise the right under the NYC Leases, and take commercially reasonable and diligent efforts to enforce such right, to require the Tenant under the NYC Leases to deposit with Lender, monthlymonthly on each Payment Date (commencing on the first Payment Date following Lender’s written request), (i) one-twelfth (1/12th) of the annual charges for Taxes that Lender estimates will (collectively, “Impounds”). Each deposit shall be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (ii) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required an amount determined by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments that will be sufficient (when combined with other monthly installments) to make each full payment of such payments all Impounds thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such paymentsImpounds. Deposits shall be made on the basis of Lender's reasonable estimate from time to time of the charges amount of Impounds for the current year (after giving effect to any recalculation or reassessment or, at Lender's election, on the basis of the charges Impounds for the prior year, with adjustments when the charges Impounds are fixed for the then current year). All funds so deposited shall not be construed as trust funds, may be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds Impounds so deposited with Lender for the purpose of securing the LoanObligations. While Upon the occurrence of an Event of Default existsDefault, the funds all Impounds deposited with Lender may be applied in payment of the charges Impounds for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of LenderObligations, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required Impounds at least thirty (30) days prior to the date on which the charges such Impounds first become payable. If at any time Lender determines that the amount on deposit with Lender, together with amounts the monthly installments to be deposited by Borrower before such charges the Impounds are payable, is are insufficient to pay such chargesthe Impounds, Borrower shall deposit any deficiency with Lender immediately upon demandwithin the Demand Period. Provided no Event of Default has occurred, Lender shall pay such charges the Impounds when the amount on deposit with Lender is sufficient to pay such charges Impounds and Lender has received a xxxx for such chargesImpounds.
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Impounds. 5.4.1 Borrower After the occurrence of an Event of Default, the Borrowers shall deposit with Lenderthe Administrative Agent (on behalf of the Lenders), monthly, (i) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due datesannual charges for ground or other rent, if any, and (ii) one-twelfth real estate taxes, assessments and similar charges relating to the Projects. Upon the occurrence of an Event of Default, the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (i) and (ii) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower Borrowers shall deposit with Lender the Administrative Agent a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lenderthe Administrative Agent's good faith estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lenderthe Administrative agent's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lenderthe Administrative Agent, without interest, and may be commingled with Lenderthe Administrative Agent's general funds. Borrower The Borrowers hereby grants grant to Lender the Administrative Agent (on behalf of the Lenders), a security interest in all funds so deposited with Lender the Administrative Agent for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan Loans or any other charges affecting the security of Lenderthe Administrative Agent and the Lenders, as Lender the Administrative Agent may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lenderthe Administrative Agent. Borrower The Borrowers shall furnish Lender the Administrative Agent with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time after the occurrence of an Event of Default, the amount on deposit with Lenderthe Administrative Agent required to be maintained pursuant to this SECTION 3.04, together with amounts to be deposited by Borrower the Borrowers before such charges are payable, is insufficient to pay such charges, Borrower Borrowers shall deposit any deficiency with Lender the Administrative Agent immediately upon demand. Lender So long as no Event of Default has occurred, the Administrative Agent shall pay such charges when the amount on deposit with Lender the Administrative Agent is sufficient to pay such charges and Lender the Administrative Agent has received a xxxx for such charges.
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Impounds. 5.4.1 (a) Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender reasonably estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's reasonable estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall (a) be held by Lender, without interest, and may (b) be commingled with Lender's general funds, and (c) earn interest at available money market rates. Any earnings on such funds shall be added to and be a part of the Tax and Insurance Escrow Fund and shall be disbursed or applied in the same manner and subject to the same terms as funds on deposit in the Tax and Insurance Escrow Fund. Any such earnings shall be for the benefit of the Borrower, subject to the Lender's rights pursuant to this Agreement. Lender shall not be responsible for any losses resulting from the investment of amounts on deposit in the Tax and Insurance Escrow Fund or for obtaining any specific level or percentage earnings on such amounts so invested. Borrower shall be liable for any income taxes due on the earnings for the amounts on deposit in the Tax and Insurance Escrow Fund. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable; provided, that, in the event that Borrower has not received such bills at least thirty (30) days prior to the date on which the charges first become payable, then Borrower shall deliver such bills to Lender promptly upon the receipt thereof. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx bxxx for such charges.
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Impounds. 5.4.1 Borrower shall deposit with Lender, monthly, (ia) one-twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (iib) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the insurance policies required by Lender upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to expiration (said amounts in (ia) and (iib) above hereinafter called the "Tax and Insurance Escrow Fund"). At or before the advance of the Loan, Borrower shall deposit with Lender a sum of money which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of Lender's estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender's election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, without interest, and may be commingled with Lender's general funds. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, or to the payment of the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and Lender has received a xxxx for such charges.received
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Samples: Loan Agreement (Equity Inns Inc)
