Common use of Replacement Reserve Funds Clause in Contracts

Replacement Reserve Funds. Borrower shall pay to Lender on each Payment Date the Replacement Reserve Monthly Deposit, which is the amount reasonably estimated by Lender in its sole discretion to be due for replacements and repairs required to be made to the Properties during the calendar year (collectively, the “Replacements”). Amounts so deposited shall hereinafter be referred to as Borrower’s “Replacement Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “Replacement Reserve Account”. Lender may reassess its estimate of the amount necessary for the Replacement Reserve Funds from time to time, and may increase the monthly amounts required to be deposited into the Replacement Reserve Account upon thirty (30) days’ notice to Borrower if Lender determines in its reasonable discretion (based upon a third party report by a Lender approved engineer employed to inspect one or more of the Properties) that an increase is necessary to properly maintain and operate the Properties. Notwithstanding the foregoing, if, at any time, and from time to time, the available Replacement Reserve Funds in the Replacement Reserve Account exceed $169,284.00 (the “Replacement Reserve Cap Condition”), Borrower’s obligation to pay to Lender the Replacement Reserve Monthly Deposit shall be suspended; provided, however, that if at any time, and from time to time, the Replacement Reserve Cap Condition is not satisfied, Borrower shall recommence and continue paying to Lender on each Payment Date the Replacement Reserve Monthly Deposit until such time as all of the Replacement Reserve Cap Condition is satisfied.

Replacement Reserve Funds. Borrower shall pay to Lender on each Payment Date on which the amount on deposit in the Replacement Reserve Account is less than the Replacement Reserve Cap, the Replacement Reserve Monthly DepositDeposit (or the portion thereof necessary to cause the amount on deposit in the Replacement Reserve Account to equal the Replacement Reserve Cap), which is the amount reasonably estimated by Lender in its sole discretion to be due for replacements and repairs required to be made to the Properties Property during the calendar year (collectively, the “Replacements”). Amounts so deposited shall hereinafter be referred to as Borrower’s “Replacement Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “Replacement Reserve Account”. Lender may reassess its estimate of the amount necessary for the Replacement Reserve Funds from time to time, and may increase the monthly amounts required to be deposited into the Replacement Reserve Account upon thirty (30) days’ notice to Borrower if Lender determines in its reasonable discretion (based upon a third party report by a Lender approved engineer employed to inspect one or more of the Properties) that an increase is necessary to properly maintain and operate the PropertiesProperty, provided that so long as no Event of Default has occurred and is continuing, Lender may not reassess such amount more often than once every calendar year. Notwithstanding the foregoingprevious requirements of this Section 7.3.1, if, at any time, and from time to time, the available Replacement Reserve Funds in the Replacement Reserve Account exceed $169,284.00 (the “Replacement Reserve Cap Condition”), Lender shall waive Borrower’s obligation obligations to pay to Lender the Replacement Reserve Monthly Deposit shall be suspended; provided, however, that if at any time, and from time to time, the Replacement Reserve Cap Condition is not satisfied, Borrower shall recommence and continue paying to Lender on each Payment Date the Replacement Reserve Monthly Deposit for so long as the following conditions are met (any of which may be waived, in Lender’s sole and absolute discretion): (i) no Event of Default has occurred and is continuing, and (ii) no Cash Management Period under clause (a)(iv) of the definition of “Cash Management Period” contained in Section 1.1 has occurred and is continuing (the conditions contained in the foregoing clauses (i) and (ii), collectively, the “Replacement Reserve Funds Waiver Conditions”). If, at any time, Borrower fails to meet any one or more of the Replacement Reserve Funds Waiver Conditions (and Lender has not opted to waive such condition(s) in its sole and absolute discretion), commencing with the next applicable Payment Date and continuing on each Payment Date until such time as all of Replacement Reserve Funds Waiver Conditions have again been met, Borrower shall deposit the Replacement Reserve Cap Condition is satisfiedMonthly Deposit (or the portion thereof necessary to cause the amount on deposit in the Replacement Reserve Account to equal the Replacement Reserve Cap) in accordance with this Section 7.3.1.

Replacement Reserve Funds. Upon the occurrence and during the continuance of an Event of Default, Borrower shall pay to deposit with Lender on each the next Monthly Payment Date and on each Monthly Payment Date thereafter an amount equal to $3,791.12 for the Replacement Reserve Monthly Deposit, which is Missouri Property and $138.89 for the amount reasonably estimated by Lender in its sole discretion to be due for replacements and repairs required to be made to the Properties during the calendar year New Hampshire Property (collectively, the “Replacement Reserve Monthly Deposit”) for the Replacements”). Amounts so deposited shall hereinafter be pursuant to this Section 8.2 are referred to herein as Borrower’s the “Replacement Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “Replacement Reserve Account”. Lender may reassess its estimate of the amount necessary for the Replacement Reserve Funds Replacements from time to timetime and, and may require Borrower to increase the monthly amounts deposits required pursuant to be deposited into the Replacement Reserve Account this Section 8.2 upon thirty (30) days’ days notice to Borrower if Lender determines in its reasonable discretion (based upon a third party report by a Lender approved engineer employed to inspect one or more of the Properties) that an increase is necessary to properly maintain and operate proper operation of the PropertiesProperty. Notwithstanding the foregoing, if, at any time, and from time to time, the available Lender shall disburse Replacement Reserve Funds in only for Replacements. Lender shall disburse to Borrower the Replacement Reserve Account exceed Funds upon satisfaction by Borrower of each of the following conditions: (i) Borrower shall submit a request for payment to Lender at least ten (10) days prior to the date on which Borrower requests such payment be made and specifies the Replacements to be paid; (ii) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default shall exist and remain uncured, (iii) Lender shall have received a certificate from Borrower (A) stating that the items to be funded by the requested disbursement are Replacements, (B) stating that all Replacements at the applicable Individual Property to be funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance with all Applicable Law, such certificate to be accompanied by a copy of any license, permit or other approval required by any Governmental Authority in connection with the Replacements, (C) identifying each Person that supplied materials or labor in connection with the Replacements to be funded by the requested disbursement and (D) stating that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied by lien waivers or other evidence of payment satisfactory to Lender; (iv) at Lender’s option, a title search for the applicable Individual Property indicating that the applicable Individual Property is free from all liens, claims and other encumbrances other than Permitted Encumbrances; (v) at Lender’s option, if the cost of any individual Replacement exceeds $169,284.00 75,000, Lender shall have received a report satisfactory to Lender in its reasonable discretion from an architect or engineer approved by Lender in respect of such architect or engineer’s inspection of the applicable Replacement; and (vi) Lender shall have received such other evidence as Lender shall reasonably request that the “Replacements at the applicable Individual Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower. Lender shall not be required to disburse Replacement Reserve Cap Condition”), Borrower’s obligation to pay to Lender Funds more frequently than once each calendar month nor in an amount less than the Minimum Disbursement Amount (or a lesser amount if the total amount of Replacement Reserve Monthly Deposit Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the account shall be suspended; provided, however, that if at any time, and from time to time, the Replacement Reserve Cap Condition is not satisfied, Borrower shall recommence and continue paying to Lender on each Payment Date the Replacement Reserve Monthly Deposit until such time as all of the Replacement Reserve Cap Condition is satisfiedmade).

Replacement Reserve Funds. Borrower shall pay to Lender (a) on the Closing Date an initial deposit of $0 and (b) on each Payment Date thereafter one-twelfth (1/12) of $32,667.20 (the “Replacement Reserve Monthly Deposit”), which is the amount reasonably estimated by Lender in its sole discretion to be due for replacements and repairs required to be made to the Properties Property during the calendar year (collectively, the “Replacements”). Amounts so deposited shall hereinafter be referred to as Borrower’s the “Replacement Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s the “Replacement Reserve Account”. Notwithstanding the aforementioned, the aggregate amount of the Replacement Reserve Account shall not exceed the Replacement Reserve Maximum Amount on any Payment Date (after giving effect to the payment of the Replacement Reserve Monthly Deposit) and accordingly, to the extent a Replacement Reserve Monthly Deposit would result in the Replacement Reserve Account to exceed the Replacement Reserve Maximum Amount, such Replacement Reserve Monthly Amount shall be decreased by an amount equal to such excess. Once the Replacement Reserve Maximum Amount is on deposit in the Replacement Reserve Account, the Replacement Reserve Monthly Deposit shall be suspended until the amount on deposit is less than the Replacement Reserve Maximum Amount. The Replacement Reserve Maximum Amount shall not apply in the event that (i) the Guarantor is no longer the guarantor under the Guaranty and/or no longer Controls the Borrower, (ii) an Event of Default has occurred and is continuing, or (iii) material physical waste, as reasonably determined by Lender, exists at the Property. Lender may reassess its estimate of the amount necessary for the Replacement Reserve Funds Account from time to time, and may increase the monthly amounts required to be deposited into the Replacement Reserve Account upon thirty (30) days’ notice to Borrower if Lender determines in its reasonable discretion (based upon a third party report by a Lender approved engineer employed to inspect one or more of the Properties) that an increase is necessary to properly maintain the proper maintenance and operate the Properties. Notwithstanding the foregoing, if, at any time, and from time to time, the available Replacement Reserve Funds in the Replacement Reserve Account exceed $169,284.00 (the “Replacement Reserve Cap Condition”), Borrower’s obligation to pay to Lender the Replacement Reserve Monthly Deposit shall be suspended; provided, however, that if at any time, and from time to time, the Replacement Reserve Cap Condition is not satisfied, Borrower shall recommence and continue paying to Lender on each Payment Date the Replacement Reserve Monthly Deposit until such time as all operation of the Replacement Reserve Cap Condition is satisfiedProperty.

Replacement Reserve Funds. Borrower shall pay to Lender on each Payment Date the sum of $6,670.00 (the “Replacement Reserve Monthly Deposit, which is the amount reasonably estimated by Lender in its sole discretion to be due ”) for replacements and repairs required to be made to the Properties Property during the calendar year (collectively, the “Replacements”). Amounts so deposited shall hereinafter be referred to as Borrower’s “Replacement Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “Replacement Reserve Account”. Notwithstanding the foregoing, if the Replacement Reserve Funds shall at any time equal or exceed $240,105.00 (the “Replacement Reserve Cap”), then Borrower’s obligation to make the Replacement Reserve Monthly Deposit shall be suspended until such time as the Replacement Reserve Funds are less than the Replacement Reserve Cap. Lender may reassess its estimate of the amount necessary for the Replacement Reserve Funds from time to time, and may increase the monthly amounts required to be deposited into the Replacement Reserve Account upon thirty (30) days’ days notice to Borrower if Lender determines in its commercially reasonable discretion (based upon a third party report by a Lender approved engineer employed to inspect one updated engineering reports or more inspections of the Properties) Property that an increase is necessary to properly maintain the proper maintenance and operate operation of the PropertiesProperty. Any amount held in the Replacement Reserve Account and allocated for the Property shall be retained by Lender and credited toward the future Replacement Reserves Monthly Deposits required by Lender hereunder in the event the Property is released from the Lien of the Security Instrument in accordance with Section 2.5 hereof. Notwithstanding the foregoing, if, at any time, and from time Borrower’s obligation to time, the available Replacement Reserve Funds in make monthly deposits to the Replacement Reserve Account exceed $169,284.00 (the “Replacement Reserve Cap Condition”), Borrower’s obligation to pay to Lender the Replacement Reserve Monthly Deposit shall be suspended; provided, however, suspended provided that if at any time, and from time to time, the Replacement Reserve Cap Condition is not satisfied, Borrower shall recommence and continue paying to Lender on each Payment Date the Replacement Reserve Monthly Deposit until such time as all no Event of the Replacement Reserve Cap Condition is satisfiedDefault occurs.

Replacement Reserve Funds. Upon the occurrence and during the continuance of an Event of Default, Borrower shall pay to deposit with Lender on each the next Monthly Payment Date and on each Monthly Payment Date thereafter an amount equal to $123.29 (the “Replacement Reserve Monthly Deposit, which is ”) for the amount reasonably estimated by Lender in its sole discretion to be due for replacements and repairs required to be made to the Properties during the calendar year (collectively, the “Replacements”). Amounts so deposited shall hereinafter be pursuant to this Section 8.2 are referred to herein as Borrower’s the “Replacement Reserve Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “Replacement Reserve Account”. Lender may reassess its estimate of the amount necessary for the Replacement Reserve Funds Replacements from time to timetime and, and may require Borrower to increase the monthly amounts deposits required pursuant to be deposited into the Replacement Reserve Account this Section 8.2 upon thirty (30) days’ days notice to Borrower if Lender determines in its reasonable discretion (based upon a third party report by a Lender approved engineer employed to inspect one or more of the Properties) that an increase is necessary to properly maintain and operate proper operation of the PropertiesProperty. Notwithstanding the foregoing, if, at any time, and from time to time, the available Lender shall disburse Replacement Reserve Funds in only for Replacements. Lender shall disburse to Borrower the Replacement Reserve Account exceed Funds upon satisfaction by Borrower of each of the following conditions: (i) Borrower shall submit a request for payment to Lender at least ten (10) days prior to the date on which Borrower requests such payment be made and specifies the Replacements to be paid; (ii) on the date such request is received by Lender and on the date such payment is to be made, no Event of Default shall exist and remain uncured, (iii) Lender shall have received a certificate from Borrower (A) stating that the items to be funded by the requested disbursement are Replacements, (B) stating that all Replacements at the Property to be funded by the requested disbursement have been completed in a good and workmanlike manner and in accordance with all Applicable Law, such certificate to be accompanied by a copy of any license, permit or other approval required by any Governmental Authority in connection with the Replacements, (C) identifying each Person that supplied materials or labor in connection with the Replacements to be funded by the requested disbursement and (D) stating that each such Person has been paid in full or will be paid in full upon such disbursement, such certificate to be accompanied by lien waivers or other evidence of payment satisfactory to Lender; (iv) at Lender’s option, a title search for the Property indicating that the Property is free from all liens, claims and other encumbrances other than Permitted Encumbrances; (v) at Lender’s option, if the cost of any individual Replacement exceeds $169,284.00 75,000, Lender shall have received a report satisfactory to Lender in its reasonable discretion from an architect or engineer approved by Lender in respect of such architect or engineer’s inspection of the applicable Replacement; and (vi) Lender shall have received such other evidence as Lender shall reasonably request that the “Replacements at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower. Lender shall not be required to disburse Replacement Reserve Cap Condition”), Borrower’s obligation to pay to Lender Funds more frequently than once each calendar month nor in an amount less than the Minimum Disbursement Amount (or a lesser amount if the total amount of Replacement Reserve Monthly Deposit Funds is less than the Minimum Disbursement Amount, in which case only one disbursement of the amount remaining in the account shall be suspended; provided, however, that if at any time, and from time to time, the Replacement Reserve Cap Condition is not satisfied, Borrower shall recommence and continue paying to Lender on each Payment Date the Replacement Reserve Monthly Deposit until such time as all of the Replacement Reserve Cap Condition is satisfiedmade).