Initial Renovation Reserve Fund Clause Samples
The Initial Renovation Reserve Fund clause establishes a dedicated fund set aside at the beginning of a property transaction or lease specifically for covering renovation or improvement costs. Typically, this fund is funded by the property owner, landlord, or sometimes the tenant, and is used to pay for agreed-upon upgrades, repairs, or refurbishments to the property. By clearly earmarking resources for renovations, this clause ensures that necessary improvements are financially supported and helps prevent disputes over funding responsibilities, thereby facilitating smoother property transitions and maintaining property standards.
Initial Renovation Reserve Fund. (a) Borrowers shall cause Mortgage Borrowers to comply with all of the terms and conditions set forth in Section 7.5 of the Mortgage Loan Agreement.
(b) In the event (i) Mortgage Lender waives the requirements of Mortgage Borrowers to maintain the Initial Renovation Reserve Fund and the Initial Renovation Reserve Account pursuant to the terms of Section 7.5 of the Mortgage Loan Agreement, or (ii) the Mortgage Loan has been repaid in full (without a prepayment of the Loan in full), Lender shall have the right to require Borrowers to establish and maintain an escrow that would operate in the same manner as the Initial Renovation Reserve Fund and the Initial Renovation Reserve Account in Section 7.5 of the Mortgage Loan Agreement and the provisions of Section 7.5 of the Mortgage Loan Agreement and all related definitions shall be incorporated herein by reference; provided, however, that all references to “Borrowers,” “Lender” and “Event of Default” therein shall be deemed references to Borrowers, Lender and Event of Default as defined herein.
Initial Renovation Reserve Fund. (a) Borrowers shall cause Mortgage Borrowers to comply with all of the terms and conditions set forth in Section 7.5 of the Mortgage Loan Agreement.
(b) In the event (i)(A) Mortgage Lender waives the requirements of Mortgage Borrowers to maintain the Initial Renovation Reserve Fund and the Initial Renovation Reserve Account pursuant to the terms of Section 7.5 of the Mortgage Loan Agreement, (B) First Mezzanine Lender waives the requirements of First Mezzanine Borrowers to maintain the Initial Renovation Reserve Fund and the Initial Renovation Reserve Account pursuant to the terms of Section 7.5 of the First Mezzanine Loan Agreement and (C) Second Mezzanine Lender waives the requirements of Second Mezzanine Borrowers to maintain the Initial Renovation Reserve Fund and the Initial Renovation Reserve Account pursuant to the terms of Section 7.5 of the Second Mezzanine Loan Agreement; or (ii) the Mortgage Loan, the First Mezzanine Loan and the Second Mezzanine Loan have been repaid in full (without a prepayment of the Loan in full), Lender shall have the right to require Borrowers to establish and maintain an escrow that would operate in the same manner as the Initial Renovation Reserve Fund and the Initial Renovation Reserve Account in Section 7.5 of the Mortgage Loan Agreement and the provisions of Section 7.5 of the Mortgage Loan Agreement and all related definitions shall be incorporated herein by reference; provided, however, that all references to “Borrowers,” “Lender” and “Event of Default” therein shall be deemed references to Borrowers, Lender and Event of Default as defined herein.
Initial Renovation Reserve Fund