Common use of Reserve for Insurance, Taxes and Assessments Clause in Contracts

Reserve for Insurance, Taxes and Assessments. Upon request of Agent while a default exists, to secure certain of Grantor's obligations in paragraphs (c) and (d) above, but not in lieu of such obligations, Grantor will deposit with Agent a sum equal to ad valorem taxes, assessments, and charges (which charges for the purpose of this paragraph shall include without limitation any recurring charge which could result in a lien against the Mortgaged Property) against the Mortgaged Property for the current year and the premiums for such policies of insurance for the current year, all as estimated by Agent and prorated to the end of the calendar month following the month during which Agent's request is made, and thereafter will deposit with Agent, on each date when an installment of principal and/or interest is due on the Notes, sufficient funds (as estimated from time-to-time by Agent) to permit Agent to pay at least fifteen (15) days prior to the due date thereof, the next maturing ad valorem taxes, assessments and charges and premiums for such policies of insurance. Agent shall have the right to rely upon tax information furnished by applicable taxing authorities in the payment of such taxes or assessments and shall have no obligation to make any protest of any such taxes or assessments. Any excess over the amounts required for such purposes shall be held by Agent for future use or refunded to Grantor, at Agent's option, and any deficiency in such funds so deposited shall be made up by Grantor upon demand of Agent. All such funds so deposited shall bear no interest, may be mingled with the general funds of Agent, and shall be applied by Agent toward the payment of such taxes, assessments, charges, and premiums when statements therefore are presented to Agent by Grantor (which statements shall be presented by Grantor to Agent a reasonable time before the applicable amount is due); provided, however, that, if a default shall have occurred hereunder, such funds may at Agent's option be applied to the payment of the secured indebtedness in the order provided in the Credit Agreement, and that Agent may (but shall have no obligation) at any time, in its discretion, apply all or any part of such funds toward the payment of any such taxes, assessments, charges, or premiums which are past due, together with any penalties or late charges with respect thereto. The conveyance or transfer of Grantor's interest in the Mortgaged Property for any reason (including without limitation the foreclosure of a subordinate lien or security interest or a transfer by operation of law) shall constitute an assignment or transfer of Grantor's interest in and rights to such funds held by Agent under this paragraph but subject to the rights of Agent hereunder.

Reserve for Insurance, Taxes and Assessments. Upon request of Agent while a default existsHolder, to secure certain of Grantor's obligations in paragraphs (c) and (d) above, but not in lieu of such obligations, Grantor will deposit with Agent Holder a sum equal to ad valorem real estate taxes, assessments, assessments and charges (which charges for the purpose of this paragraph shall include without limitation any recurring charge which could result in a lien against the Mortgaged Property) against the Mortgaged Property for the current year and the premiums for such policies of insurance for the current year, all as estimated by Agent Holder and prorated to the end of the calendar month following the month during which AgentHolder's request is made, and thereafter will deposit with AgentHolder, on each date when an installment of principal and/or interest is due on the NotesNote, sufficient funds (as estimated from time-to-time to time by AgentHolder) to permit Agent Holder to pay at least fifteen (15) days prior to the due date thereof, the next maturing ad valorem real estate taxes, assessments and charges and premiums for such policies of insurance. Agent Holder shall have the right to rely upon tax information furnished by applicable taxing authorities in the payment of such taxes or assessments and shall have no obligation to make any protest of any such taxes or assessments. Any excess over the amounts required for such purposes shall be held by Agent Holder for future use use, applied to any Secured Indebtedness or refunded to Grantor, at AgentHolder's option, and any deficiency in such funds so deposited shall be made up by Grantor upon demand of AgentHolder. All such funds so deposited shall bear no interest, may be mingled with the general funds of Agent, Holder and shall be applied by Agent Holder toward the payment of such taxes, assessments, charges, charges and premiums when statements therefore therefor are presented to Agent Holder by Grantor (which statements shall be presented by Grantor to Agent Holder a reasonable time before the applicable amount is due); provided, however, that, if a default shall have occurred hereunder, such funds may at AgentHolder's option be applied to the payment of the secured indebtedness Secured Indebtedness in the order provided determined by Holder in the Credit Agreementits sole discretion, and that Agent Holder may (but shall have no obligation) at any time, in its discretion, apply all or any part of such funds toward the payment of any such taxes, assessments, charges, charges or premiums which are past due, together with any penalties or late charges with respect thereto. The conveyance or transfer of Grantor's interest in the Mortgaged Property for any reason (including without limitation the foreclosure of a subordinate lien or security interest or a transfer by operation of law) shall constitute an assignment or transfer of Grantor's interest in and rights to such funds held by Agent Holder under this paragraph but subject to the rights of Agent Holder hereunder.

Reserve for Insurance, Taxes and Assessments. Upon the occurrence of an Event of Default and upon the written request of Agent while a default existsAgent, to secure certain of Grantor's obligations in paragraphs (c) and (d) above, but not in lieu of such obligations, Grantor will deposit with Agent a sum equal to ad valorem taxes, assessments, assessments and charges (which charges for the purpose of this paragraph shall include without limitation any recurring charge which could result in a lien against the Mortgaged PropertyPremises) against the Mortgaged Property Premises for the current year and the premiums for such policies of insurance for the current year, all as estimated by Agent and prorated to the end of the calendar month following the month during which Agent's request is made, and thereafter will deposit with Agent, on each date when an installment of principal and/or interest is due on the Notes, sufficient funds (as estimated from time-to-time to time by Agent) to permit Agent to pay at least fifteen (15) days prior to the due date thereof, the next maturing ad valorem taxes, assessments and charges and premiums for such policies of insurance. Agent shall have the right to rely upon tax information furnished by applicable taxing authorities in the payment of such taxes or assessments and shall have no obligation to make any protest of any such taxes or assessments. Any excess over the amounts required for such purposes shall be held by Agent for future use use, applied to any secured indebtedness or refunded to Grantorgrantor, at Agent's option, and any deficiency in such funds so deposited shall be made up by Grantor upon demand of Agent. All such funds so deposited shall bear no SWI TENNESSEE DEED OF TRUST 5 6 interest, may be mingled with the general funds of Agent, Agent and shall be applied by Agent toward the payment of such taxes, assessments, charges, charges and premiums when statements therefore therefor are presented to Agent by Grantor (which statements shall be presented by Grantor to Agent a reasonable time before the applicable amount is due); provided, however, that, if a default shall have occurred hereunder, such funds may at Agent's option be applied to the payment of the secured indebtedness in the order provided determined by Agent in the Credit Agreementits sole discretion, and that Agent may (but shall have no obligation) at any time, in its discretion, apply all or any part of such funds toward the payment of any such taxes, assessments, charges, charges or premiums which are past due, together with any penalties or late charges with respect thereto. The conveyance or transfer of Grantor's interest in the Mortgaged Property Premises for any reason (including without limitation the foreclosure of a subordinate lien or security interest or a transfer by operation of law) shall constitute an assignment or transfer of Grantor's interest in and rights to such funds held by Agent under this paragraph but subject to the rights of Agent hereunder.

Reserve for Insurance, Taxes and Assessments. Upon the occurrence of a default and upon the written request of Agent while a default existsAgent, to secure certain of Grantor's obligations in paragraphs (c) and (d) above, but not in lieu of such obligations, Grantor will deposit with Agent a sum equal to ad valorem taxes, assessments, assessments and charges (which charges for the purpose of this paragraph shall include without limitation any recurring charge which could result in a lien against the Mortgaged Property) against the Mortgaged Property for the current year and the premiums for such policies of insurance for the current year, all as estimated by Agent and prorated to the end of the calendar month following the month during which Agent's request is made, and thereafter will deposit with Agent, on each date when an installment of principal and/or interest is due on the Notes, sufficient funds (as estimated from time-to-time to time by Agent) to permit Agent to pay at least fifteen (15) days prior to the due date thereof, the next maturing ad valorem taxes, assessments and charges and premiums for such policies of insurance. Agent shall have the right to rely upon tax information furnished by applicable taxing authorities in the payment of such taxes or assessments and shall have no obligation to make any protest of any such taxes or assessments. Any excess over the amounts required for such purposes shall be held by Agent for future use use, applied to any secured indebtedness or refunded to Grantor, at Agent's option, and any deficiency in such funds so deposited shall be made up by Grantor upon demand of Agent. All such funds so deposited shall bear no interest, may be mingled with the general funds of Agent, Agent and shall be applied by Agent toward the payment of such taxes, assessments, charges, charges and premiums when statements therefore therefor are presented to Agent by Grantor (which statements shall be presented by Grantor to Agent a reasonable time before the applicable amount is due); provided, however, that, if a default shall have occurred hereunder, such funds may at Agent's option be applied to the payment of the secured indebtedness in the order provided determined by Agent in the Credit Agreementits sole discretion, and that Agent may (but shall have no obligation) at any time, in its discretion, apply all or any part of such funds toward the payment of any such taxes, assessments, charges, charges or premiums which are past due, together with any penalties or late charges with respect thereto. The conveyance or transfer of Grantor's interest in the Mortgaged Property for any reason (including without limitation the foreclosure of a subordinate lien or security interest or a transfer by operation of law) shall constitute an assignment or transfer of Grantor's interest in and rights to such funds held by Agent under this paragraph but subject to the rights of Agent hereunder.