Common use of Litigation Reserve Account Clause in Contracts

Litigation Reserve Account. The Company, in its discretion, may establish a litigation reserve (the “Litigation Reserve”) from which to fund litigation costs and expenses (including attorneys’ fees) that constitute Servicing Expenses. If the Company elects to establish a Litigation Reserve, it shall establish a Litigation Reserve Account. The Litigation Reserve Account shall be held in trust for the benefit of the Participant and the Company and shall be established and maintained for the sole purpose of holding and distributing the Litigation Reserve funds. The Company may fund the Litigation Reserve with such portion of the Loan Proceeds as it deems appropriate, in the exercise of its reasonable discretion. Such determination will be made at the beginning of each month and if the Company determines to fund the Litigation Reserve Account for that month, it will fund such amount for such month in accordance with the provisions of Section 3.04(a). At any time after the Company funds the Litigation Reserve Account, the Company may, in the exercise of its reasonable discretion, determine to release some or all of the funds from the Litigation Reserve Account and allocate and distribute such released funds in accordance with Section 4.01. At the time of the Final Distribution, all remaining funds held in the Litigation Reserve Account shall be allocated and distributed in accordance with Section 4.01. Amounts on deposit in the Litigation Reserve Account shall be invested in Permitted Investments, shall not be used to pay costs or expenses other than litigation costs and expenses that constitute Servicing Expenses, and shall be used to pay such litigation costs and expenses only in any month in which the Loan Proceeds received during that month do not provide sufficient cash to pay all Servicing Expenses due and payable (without prepayment) during that month. No funds from any other source (other than interest or earnings on the funds held in the Litigation Reserve Account) shall be commingled in the Litigation Reserve Account. Amounts on deposit in the Litigation Reserve Account (including interest and earnings thereon) shall be used and may be withdrawn and disbursed only in accordance with the provisions of this Section 4.03(b). The Servicer shall be authorized and directed to withdraw funds from the Litigation Reserve Account only to make disbursements in accordance with this Agreement and not for any other purpose. The Litigation Reserve Account (and all funds therein) shall be subject to the security interest granted to the Participant in Section 2.06 of this Agreement and, as such, prior to establishing the Litigation Reserve Account or making any deposits therein, the Company shall provide the Participant with an account control agreement in substantially the form attached hereto as Exhibit B and such agreement shall be executed and delivered by the Participant, the Company and the Eligible Institution that will hold such Litigation Reserve Account.

Litigation Reserve Account. The Company, in its discretion, may establish a litigation reserve (the “Litigation Reserve”) from which to fund litigation costs and expenses (including attorneys’ feesfees and fees of experts and other consultants retained in connection with litigation) that constitute Servicing Expenses. If the Company elects to establish a Litigation Reserve, Reserve it shall establish a Litigation Reserve Account. The Litigation Reserve Account shall be held in trust for the benefit of the Participant and the Company and shall be established and maintained for the sole purpose of holding and distributing the Litigation Reserve funds. The Company may fund the Litigation Reserve with such portion of the Loan Proceeds as it deems appropriate, in the exercise of its reasonable discretion. Such determination will be made at the beginning of each month and if the Company determines to fund the Litigation Reserve Account for that month, it will fund such amount for such month in accordance with the provisions of Section 3.04(a3.03(a). At any time after the Company funds the Litigation Reserve Account, the Company may, in the exercise of its reasonable discretion, determine to release some or all of the funds from the Litigation Reserve Account and move such funds from the Litigation Reserve Account to the Liquidity Reserve Account or allocate and distribute such released funds in accordance with Section 4.01. At the time of the Final Distribution, all remaining funds held in the Litigation Reserve Account shall be allocated and distributed to Participant and to the Company in accordance with Section 4.01. Amounts on deposit in the Litigation Reserve Account shall be invested in Permitted Investments, shall not be used to pay costs or expenses other than litigation costs and expenses that constitute Servicing Expenses, and shall be used to pay such litigation costs and expenses only in any month in which the Loan Proceeds received during that month do not provide sufficient cash to pay all Servicing Expenses due and payable (without prepayment) during that month. No funds from any other source (other than interest or earnings on the funds held in the Litigation Reserve Account) shall be commingled in the Litigation Reserve Account. Amounts on deposit in the Litigation Reserve Account (including interest and earnings thereon) shall be used and may be withdrawn and disbursed only in accordance with the provisions of this Section 4.03(b)Section. The Servicer shall be authorized and directed to withdraw funds from the Litigation Reserve Account only to make disbursements in accordance with this Agreement and not for any other purpose. The Litigation Reserve Account (and all funds therein) shall be subject to the security interest granted to the Participant in Section 2.06 of this Agreement and, as such, prior to establishing the Litigation Reserve Account or making withholding any deposits funds for deposit therein, the Company shall provide the Participant with an account control agreement in substantially the form attached hereto as Exhibit B and such agreement shall be executed and delivered by the Participant, the Company and the Eligible Institution that will hold such Litigation Reserve Account.F.

Litigation Reserve Account. The Company, in its discretion, may establish a litigation reserve (the “Litigation Reserve”) from which to fund litigation costs and expenses (including attorneys’ feesfees and fees of experts and other consultants retained in connection with litigation) that constitute Servicing Expenses. If the Company elects to establish a Litigation Reserve, Reserve it shall establish a Litigation Reserve Account. The Litigation Reserve Account shall be held in trust for the benefit of the Participant and the Company and shall be established and maintained for the sole purpose of holding and distributing the Litigation Reserve funds. The Company may fund the Litigation Reserve with such portion of the Loan Proceeds as it deems appropriate, in the exercise of its reasonable discretion. Such determination will be made at the beginning of each month and if the Company determines to fund the Litigation Reserve Account for that month, it will fund such amount for such month in accordance with the provisions of Section 3.04(a3.03(a). At any time after the Company funds the Litigation Reserve Account, the Company may, in the exercise of its reasonable discretion, determine to release some or all of the funds from the Litigation Reserve Account and move such funds from the Litigation Reserve Account to the Liquidity Reserve Account or allocate and distribute such released funds in accordance with Section 4.01. At 0.00.Xx the time of the Final Distribution, all remaining funds held in the Litigation Reserve Account shall be allocated and distributed to Participant and to the Company in accordance with Section 4.01. Amounts on deposit in the Litigation Reserve Account shall be invested in Permitted Investments, shall not be used to pay costs or expenses other than litigation costs and expenses that constitute Servicing Expenses, and shall be used to pay such litigation costs and expenses only in any month in which the Loan Proceeds received during that month do not provide sufficient cash to pay all Servicing Expenses due and payable (without prepayment) during that month. No funds from any other source (other than interest or earnings on the funds held in the Litigation Reserve Account) shall be commingled in the Litigation Reserve Account. Amounts on deposit in the Litigation Reserve Account (including interest and earnings thereon) shall be used and may be withdrawn and disbursed only in accordance with the provisions of this Section 4.03(b)Section. The Servicer shall be authorized and directed to withdraw funds from the Litigation Reserve Account only to make disbursements in accordance with this Agreement and not for any other purpose. The Litigation Reserve Account (and all funds therein) shall be subject to the security interest granted to the Participant in Section 2.06 of this Agreement and, as such, prior to establishing the Litigation Reserve Account or making withholding any deposits funds for deposit therein, the Company shall provide the Participant with an account control agreement in substantially the form attached hereto as Exhibit B and such agreement shall be executed and delivered by the Participant, the Company and the Eligible Institution that will hold such Litigation Reserve Account.F.