Common use of Interest on Reserve Accounts Clause in Contracts

Interest on Reserve Accounts. Borrower shall not be entitled to any earnings or interest on funds deposited into the Reserve Accounts. Notwithstanding the foregoing, amounts on deposit in the Deferred Maintenance and Environmental Reserve Account and the FF&E Reserve Account shall bear interest at the money-market rates customarily offered by the bank or other financial institution used by Lender or its servicer for the purposes of holding such accounts (provided, however, that interest paid or payable with respect to any such account may not be based on the highest rate of interest payable by Lender or such bank or institution on deposits and shall not be calculated based on any particular external interest rate or interest rate index, nor shall any such interest reflect the interest rate utilized by Lender or such bank or institution to calculate interest payable on deposits held with respect to any particular loan or borrower or class of loans or borrowers, and Lender shall have no liability with respect to the amount of interest paid and/or loss of principal). Lender shall be entitled to a servicing fee in the amount of .50% per annum multiplied by the average daily balance of the applicable account (which fee Lender is hereby authorized to deduct from such account on a monthly basis). All such interest paid or other earnings on the sums held in such accounts at the above described rates (if any), less such servicing fee, shall be income of Borrower, shall, if required by law, be reported by Borrower on its tax returns as income of Borrower, shall remain in the applicable account and shall be subject to allocation and distribution in the same manner and under the same conditions as the principal sum on which said interest or other earnings accrued.

Interest on Reserve Accounts. Borrower shall not be entitled to any earnings or interest on funds deposited into the Reserve Accounts. Notwithstanding the foregoing, amounts Amounts on deposit in the Tax and Insurance Reserve Account, the Deferred Maintenance and Environmental Reserve Account Account, the Capital Expenditure Reserve Account, and the FF&E Rollover Reserve Account shall bear interest (which money market rate interest shall be for the benefit of Borrower) at the money-money market rates customarily offered by the bank or other financial institution used by Lender or its servicer for the purposes of holding such accounts (provided, however, that interest paid or payable with respect to any such account may not be based on the highest rate of interest payable by Lender or such bank or institution on deposits and shall not be calculated based on any particular external interest rate or interest rate index, nor shall any such interest reflect the interest rate utilized by Lender or such bank or institution to calculate interest payable on deposits held with respect to any particular loan or borrower or class of loans or borrowers, and Lender shall have no liability with respect to the amount of interest paid and/or loss of principal). Lender shall be entitled to a servicing fee in the amount of .50% per annum multiplied by the average daily balance of the applicable account (which fee Lender is hereby authorized to deduct from such account on a monthly basis). All such money market interest paid or other earnings on the sums held in such accounts at the above described rates (if any), less such servicing fee, shall be income of Borrower, shall, if required by law, be reported by Borrower on its tax returns as income of Borrower, shall remain in the applicable account and shall be subject to allocation and distribution in the same manner and under the same conditions as the principal sum on which said interest or other earnings accrued.