Common use of Real Estate Tax Impounds Clause in Contracts

Real Estate Tax Impounds. Subject to the last sentence of this Section 3.5, the Borrowers have previously deposited and shall continue to deposit with Agent, monthly on each Payment Date, a sum of money (the “Tax Impound”) equal to one twelfth (1/12th) of the annual charges for real estate taxes, assessments, franchise taxes and changes, impositions and other charges and obligations (collectively, the “Taxes”) relating to the Projects which will be sufficient to make payments of Taxes relating to the Projects thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments and maintain a reserve equal to approximately 1/6 of such annual Taxes. Deposits shall be made on the basis of Agent’s estimate from time to time of the Taxes for the current year (after giving effect to any reassessment or, at Agent’s election, on the basis of the Taxes for the prior year, with adjustments when the Taxes are fixed for the then current year). All funds so deposited shall be held by Agent. These sums may be commingled with Agent’s general funds and shall not be deemed to be held in trust for the benefit of Borrowers. Borrowers hereby grant to Agent for the benefit of Lender and Agent a security interest in all funds so deposited with Agent for the purpose of securing the Loans. Until an Event of Default exists, Agent shall apply the funds deposited to pay the Taxes as provided herein. 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 Loans or any other charges affecting the security of Agent, as Agent may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Agent. Borrowers shall furnish Agent with bills for the Taxes for which such deposits are required at least thirty (30) days prior to the date on which the Taxes first become payable. If at any time the amount on deposit with Agent, together with amounts to be deposited by Borrowers before such Taxes are payable, is insufficient to pay such Taxes and maintain such reserves, the applicable Borrowers shall deposit any deficiency with Agent immediately upon demand. Agent shall pay such Taxes when the amount on deposit with Agent is sufficient to pay such Taxes and Agent has received a xxxx for such Taxes. The obligation of Borrowers to pay the Taxes, as set forth in the Loan Documents, is not affected or modified by the provision of this paragraph; provided, however, that Borrowers shall not be in default under the Loans for failure to pay Taxes if and to the extent there are sufficient funds on deposit in the Tax Impound to timely pay such Taxes. On the Maturity Date, the monies then remaining on deposit with Agent attributable to the then maturing Loan, as applicable, shall, at Agent’s option, be applied against the Obligations or if no Event of Default is continuing, returned to applicable Borrowers. Notwithstanding the provisions of this Section 3.5, to the extent that the Operating Tenants pay all Taxes when due in the ordinary course of their business and pursuant to the obligations under the Master Lease, the Agent will waive the requirement of Borrowers to fund the Tax Impound; provided, however, that upon the occurrence and continuation of an Event of Default which is not cured within any applicable grace or cure period herein, then Borrowers shall deposit (or shall cause the Operating Tenants to deposit) with Agent the amounts required under this Section 3.5 to fund the Tax Impound.

Real Estate Tax Impounds. Subject Borrowers shall deposit (or shall cause Master Tenant to the last sentence of this Section 3.5, the Borrowers have previously deposited and shall continue to deposit deposit) with Agent, monthly on each Payment Date, a sum of money (the “Tax Impound”) equal to one twelfth (1/12th) of the annual charges for real estate taxes, assessments, franchise taxes and changes, impositions and other charges and obligations relating to the Projects (collectively, the “Taxes”) relating to ). At or before the Projects initial advance of the Loan, Borrowers shall deposit with Agent a sum of money which together with the monthly installments will be sufficient to make each of such payments of Taxes relating to the Projects thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments and maintain a reserve equal to approximately 1/6 of such annual Taxespayments. Deposits shall be made on the basis of Agent’s estimate from time to time of the Taxes charges for the current year (after giving effect to any reassessment or, at Agent’s election, on the basis of the Taxes charges for the prior year, with adjustments when the Taxes charges are fixed for the then current year). All funds so deposited shall be held by Agent. These sums may be commingled with Agent’s general funds and shall not be deemed to be held in trust for the benefit of Borrowers. So long as no Potential Default or Event of Default exists hereunder, Agent shall credit for Borrowers’ account interest on such funds held by Agent from time to time at the Money Market Rate. All interest paid on such funds shall be deemed to be a part of the Tax Impound and shall be applied in accordance with this ‎Section 3.5. Borrowers hereby grant to Agent for the benefit of Lender and Agent a security interest in all funds so deposited with Agent for the purpose of securing the Loans. Until an Event of Default exists, Agent shall apply the funds deposited to pay the Taxes as provided hereinLoan. 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 Loans Loan or any other charges affecting the security of Agent, as Agent may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Agent. Borrowers shall furnish Agent with bills for the Taxes charges for which such deposits are required at least thirty (30) days prior to the date on which the Taxes charges first become payable. If at any time the amount on deposit with Agent, together with amounts to be deposited by Borrowers before such Taxes charges are payable, is insufficient to pay such Taxes and maintain such reservescharges, the applicable Borrowers shall deposit any deficiency with Agent immediately upon demand. Agent shall pay such Taxes charges when the amount on deposit with Agent is sufficient to pay such Taxes charges and Agent has received a xxxx for such Taxescharges. The obligation of Borrowers to pay the Taxes, as set forth in the Loan Security Documents, is not affected or modified by the provision of this paragraph; provided, however, that Borrowers shall not be in default under the Loans for failure to pay Taxes if and to the extent there are sufficient funds on deposit in the Tax Impound to timely pay such Taxes. On the Maturity Date, the monies then remaining on deposit with Agent attributable to the then maturing Loan, as applicable, shall, at Agent’s option, be applied against the Obligations or if no Event of Default is continuing, returned to applicable Borrowers. Notwithstanding the provisions of this Section 3.5, to the extent that the Operating Tenants pay all Taxes when due in the ordinary course of their business and pursuant to the obligations under the Master Lease, the Agent will waive the requirement of Borrowers to fund the Tax Impound; provided, however, that upon the occurrence and continuation of an Event of Default which is not cured within any applicable grace or cure period herein, then Borrowers shall deposit (or shall cause the Operating Tenants to deposit) with Agent the amounts required under this Section 3.5 to fund the Tax Impound.

Real Estate Tax Impounds. Subject At the time of and in addition to the last sentence monthly installment of interest, and if applicable, principal due under the Note and this Section 3.5Loan Agreement, the Borrowers have previously deposited and Borrower shall continue to deposit with Agent or Agent's designee, monthly on each Payment Datemonthly, a sum of money (the “"Tax Impound”") equal to one one-twelfth (1/12th) of the annual charges for real estate taxes, assessments, franchise taxes and changes, impositions and other charges and obligations relating to the Projects (collectively, the “"Taxes”) relating to "). At or before the Projects initial advance of the Loan, Borrower shall deposit with Agent or Agent's designee a sum of money which together with the monthly installments will be sufficient to make each of such payments of Taxes relating to the Projects thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments and maintain a reserve equal to approximately 1/6 one-sixth (1/6th) of such the annual Taxestaxes, assessments and charges in Agent's sole but reasonable estimation. Deposits shall be made on the basis of Agent’s 's estimate from time to time of the Taxes charges for the current year (after giving effect to any reassessment or, at Agent’s 's election, on the basis of the Taxes charges for the prior year, with adjustments when the Taxes charges are fixed for the then current year). All funds so deposited shall be held by Agent or Agent's designee. These sums may be commingled with Agent or Agent’s 's designee's general funds and shall not be deemed to be held in trust for the benefit of BorrowersBorrower. Borrowers So long as no Event of Default exists hereunder, Agent shall credit for Borrower's account interest on such funds held by Agent or Agent's designee from time to time at the Money Market Rate. All interest paid on such funds shall be deemed to be a part of the Tax Impound and shall be applied in accordance with this Section 3.5. Borrower hereby grant grants to Agent for the benefit of Lender and Agent a security interest in all funds so deposited with Agent or Agent's designee for the purpose of securing the Loans. Until an Event of Default exists, Agent shall apply the funds deposited to pay the Taxes as provided hereinLoan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, Taxes or to the payment of the Loans Loan or any other charges affecting the security of Agent, as Agent may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Agent. Borrowers Borrower shall furnish furnish, or cause to be furnished, to Agent with bills for the Taxes for which such deposits are required at least thirty (30) days prior to the date on which the Taxes first become payable. If at any time the amount on deposit with Agent or Agent's designee, together with amounts to be deposited by Borrowers Borrower before such Taxes are payable, is insufficient to pay such Taxes and maintain such reservesa reserve equal to approximately one-sixth (1/6th) of the Taxes, the applicable Borrowers Borrower shall deposit any deficiency with Agent or Agent's designee immediately upon demand. Agent shall pay such Taxes when the amount on deposit with Agent or Agent's designee is sufficient to pay such Taxes charges and maintain such reserve and Agent has received a xxxx for such Taxescharges. The obligation of Borrowers Borrower to pay the Taxes, as set forth in the Loan Security Documents, is not affected or modified by the provision provisions of this paragraph; provided, however, that Borrowers paragraph but shall not be in default under deemed satisfied if the Loans for failure same are paid by Agent or Agent's designee pursuant to pay Taxes if and to the extent there are sufficient funds on deposit in the Tax Impound to timely pay such Taxes. On the Maturity Date, the monies then remaining on deposit with Agent attributable to the then maturing Loan, as applicable, shall, at Agent’s option, be applied against the Obligations or if no Event of Default is continuing, returned to applicable Borrowers. Notwithstanding the provisions of this Section 3.5, to the extent that the Operating Tenants pay all Taxes when due in the ordinary course of their business and pursuant to the obligations under the Master Lease, the Agent will waive the requirement of Borrowers to fund the Tax Impound; provided, however, that upon the occurrence and continuation of an Event of Default which is not cured within any applicable grace or cure period herein, then Borrowers shall deposit (or shall cause the Operating Tenants to deposit) with Agent the amounts required under this Section 3.5 to fund the Tax Impoundparagraph.

Real Estate Tax Impounds. Subject At the time of and in addition to the last sentence monthly installment of interest, and if applicable, principal due under the Note and this Section 3.5Loan Agreement, the Borrowers have previously deposited and Borrower shall continue to deposit with Agent's or Agent's designee, monthly on each Payment Datemonthly, a sum of money (the “"Tax Impound”") equal to one one-twelfth (1/12th) of the annual charges for real estate taxes, assessments, franchise taxes and changes, impositions and other charges and obligations relating to the Project (collectively, the “"Taxes”) relating to "). At or before the Projects initial advance of the Loan, Borrower shall deposit with Agent or Agent's designee a sum of money which together with the monthly installments will be sufficient to make each of such payments of Taxes relating to the Projects thirty (30) days prior to the date any delinquency or penalty becomes due with respect to such payments and maintain a reserve equal to approximately 1/6 one-sixth (1/6th) of such the annual Taxestaxes, assessments and charges in Agent's sole but reasonable estimation. Deposits shall be made on the basis of Agent’s 's estimate from time to time of the Taxes charges for the current year (after giving effect to any reassessment or, at Agent’s 's election, on the basis of the Taxes charges for the prior year, with adjustments when the Taxes charges are fixed for the then current year). All funds so deposited shall be held by Agent or Agent's designee. These sums may be commingled with Agent or Agent’s 's designee's general funds and shall not be deemed to be held in trust for the benefit of BorrowersBorrower. Borrowers So long as no Event of Default exists hereunder, Agent shall credit for Borrower's account interest on such funds held by Agent or Agent's designee from time to time at the Money Market Rate. All interest paid on such funds shall be deemed to be a part of the Tax Impound and shall be applied in accordance with this Section 3.5. Borrower hereby grant grants to Agent for the benefit of Lender and Agent a security interest in all funds so deposited with Agent or Agent's designee for the purpose of securing the Loans. Until an Event of Default exists, Agent shall apply the funds deposited to pay the Taxes as provided hereinLoan. While an Event of Default exists, the funds deposited may be applied in payment of the charges for which such funds have been deposited, Taxes or to the payment of the Loans Loan or any other charges affecting the security of Agent, as Agent may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Agent. Borrowers Borrower shall furnish furnish, or cause to be furnished, to Agent with bills for the Taxes for which such deposits are required at least thirty (30) days prior to the date on which the Taxes first become payable. If at any time the amount on deposit with Agent or Agent's designee, together with amounts to be deposited by Borrowers Borrower before such Taxes are payable, is insufficient to pay such Taxes and maintain such reservesa reserve equal to approximately one-sixth (1/6th) of the Taxes, the applicable Borrowers Borrower shall deposit any deficiency with Agent or Agent's designee immediately upon demand. Agent shall pay such Taxes when the amount on deposit with Agent or Agent's designee is sufficient to pay such Taxes charges and maintain such reserve and Agent has received a xxxx for such Taxescharges. The obligation of Borrowers Borrower to pay the Taxes, as set forth in the Loan DocumentsSecurity Document, is not affected or modified by the provision provisions of this paragraph; provided, however, that Borrowers paragraph but shall not be in default under deemed satisfied if the Loans for failure same are paid by Agent or Agent's designee pursuant to pay Taxes if and to the extent there are sufficient funds on deposit in the Tax Impound to timely pay such Taxes. On the Maturity Date, the monies then remaining on deposit with Agent attributable to the then maturing Loan, as applicable, shall, at Agent’s option, be applied against the Obligations or if no Event of Default is continuing, returned to applicable Borrowers. Notwithstanding the provisions of this Section 3.5, to the extent that the Operating Tenants pay all Taxes when due in the ordinary course of their business and pursuant to the obligations under the Master Lease, the Agent will waive the requirement of Borrowers to fund the Tax Impound; provided, however, that upon the occurrence and continuation of an Event of Default which is not cured within any applicable grace or cure period herein, then Borrowers shall deposit (or shall cause the Operating Tenants to deposit) with Agent the amounts required under this Section 3.5 to fund the Tax Impoundparagraph.