Common use of Monthly Tax Deposit Clause in Contracts

Monthly Tax Deposit. After the occurrence of an Event of Default, and if required by Grantee, Grantor shall pay on the first day of each month one-twelfth (1/12) of the yearly taxes on the Property, as estimated by Grantee, in addition to each regular installment of principal and interest. Such sums shall not draw interest and shall not be, nor be deemed to be, trust funds, but may be commingled with the general funds of Grantee. Grantor agrees to pay Grantee the amount of any deficiency necessary to enable Grantee to pay such taxes when due. Such sums may be applied by the Grantee to the reduction of the indebtedness secured hereby in any manner selected by Grantee if an Event of Default shall occur under this Deed to Secure Debt or under the Note, any of the other Loan Documents, or any of the Other Indebtedness Instruments, but, unless otherwise agreed by the Grantee in writing, no application of tax deposits to the Note, to Other Indebtedness, or to other obligations secured hereby, shall delay, reduce, alter or otherwise affect any regularly scheduled payment with respect to the Loan, the Other Indebtedness, or any such other obligations.

Monthly Tax Deposit. After the occurrence of an Event of Default, and if If required by GranteeLender, Grantor Mortgagor shall pay on the first day of each month one-twelfth (1/12) of the yearly taxes on the Mortgaged Property, as estimated by GranteeLender, in addition to each regular installment of principal and interest. Such sums shall not draw interest and shall not be, nor be deemed to be, trust funds, but may be commingled with the general funds of GranteeLender. Grantor Mortgagor agrees to pay Grantee Lender the amount of any deficiency necessary to enable Grantee Lender to pay such taxes when due. Such sums may be applied by the Grantee Lender to the reduction of the indebtedness secured hereby in any manner selected by Grantee Lender if an Event of Default shall occur under this Deed to Secure Debt Mortgage or under the Note, any of the other Loan Documents, or any of the Other Indebtedness Instruments, but, unless otherwise agreed by the Grantee Lender in writing, no application of tax deposits to the Note, to Other Indebtedness, or to other obligations secured hereby, shall delay, reduce, alter or otherwise affect any regularly scheduled payment with respect to the Loan, the Other Indebtedness, or any such other obligations.