Common use of Tax and Insurance Reserve Account Clause in Contracts

Tax and Insurance Reserve Account. The Tax and Insurance Reserve Fund, the Monthly Debt Service Payment Amount and all other payments due hereunder or under the other Loan Documents, shall be added together and shall be paid as an aggregate sum by Borrower to Lender. Lender will apply the Tax and Insurance Reserve Fund to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to this Agreement and under the Mortgages. In making any payment relating to the Tax and Insurance Reserve Fund, Lender may do so according to any xxxx, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums) or from Borrower without inquiry into the accuracy of such xxxx, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof; provided, however, Lender shall use reasonable efforts to pay such real property taxes sufficiently early to obtain the benefit of any available discounts to which it has knowledge. If the amount of the Tax and Insurance Reserve Fund shall exceed the amounts due for Taxes, Other Charges and Insurance Premiums, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Reserve Fund. The Tax and Insurance Reserve Fund shall be held by Lender in an interest-bearing account and shall at Lender’s option be held in Eligible Account at an Eligible Institution. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Properties. If at any time Lender reasonably determines that the Tax and Insurance Reserve Fund is not or will not be sufficient to pay Taxes, Other Charges and Insurance Premiums by the dates set forth above, Lender shall notify Borrower of such determination and Borrower shall increase their monthly payments to Lender by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to delinquency of the Taxes or Insurance Premiums. Any Tax and Insurance Reserve Funds remaining after the Debt has been paid in full shall be paid to Borrower. Notwithstanding anything to the contrary hereinbefore contained, Lender shall waive the requirement set forth herein for Borrower to make deposits for the payment of Insurance Premiums into the Tax and Insurance Reserve Fund so long as (a) no Event of Default has occurred and is continuing, and (b) Borrower has provided Lender with satisfactory evidence (as determined by Lender) that each Individual Property is insured in accordance with Section 6.1 of this Agreement and the Mortgage Loan Agreement pursuant to a blanket insurance Policy covering substantially all real property owned directly or indirectly by Indemnitor, including, without limitation, the Properties.

Appears in 1 contract

Samples: Junior Mezzanine Loan Agreement (Inland Western Retail Real Estate Trust Inc)

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Tax and Insurance Reserve Account. The Tax and Insurance Reserve Fund, the Monthly Debt Service Payment Amount and all other payments due hereunder or under the other Loan Documents, shall be added together and shall be paid as an aggregate sum by Borrower to Lender. Lender will apply the Tax and Insurance Reserve Fund to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to this Agreement and under the Mortgages. In making any payment relating to the Tax and Insurance Reserve Fund, Lender may do so according to any xxxx, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums) or from Borrower without inquiry into the accuracy of such xxxx, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof; provided, however, Lender shall use reasonable efforts to pay such real property taxes sufficiently early to obtain the benefit of any available discounts to which it has knowledge. If the amount of the Tax and Insurance Reserve Fund shall exceed the amounts due for Taxes, Other Charges and Insurance Premiums, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Reserve Fund. The Tax and Insurance Reserve Fund shall be held by Lender in an interest-bearing account and shall at Lender’s option be held in Eligible Account at an Eligible Institution. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Properties. If at any time Lender reasonably determines that the Tax and Insurance Reserve Fund is not or will not be sufficient to pay Taxes, Other Charges and Insurance Premiums by the dates set forth above, Lender shall notify Borrower of such determination and Borrower shall increase their monthly payments to Lender by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to delinquency of the Taxes or Insurance Premiums. Any Tax and Insurance Reserve Funds remaining after the Debt has been paid in full shall be paid (i) to Junior Mezzanine Lender to be held by Junior Mezzanine Lender pursuant to the Junior Mezzanine Loan Agreement for purposes similar to those described in this Section 7.2; or (ii) if the Junior Mezzanine Loan is not then outstanding, then to Borrower. Notwithstanding anything to the contrary hereinbefore contained, Lender shall waive the requirement set forth herein for Borrower to make deposits for the payment of Insurance Premiums into the Tax and Insurance Reserve Fund so long as (a) no Event of Default has occurred and is continuing, and (b) Borrower has provided Lender with satisfactory evidence (as determined by Lender) that each Individual Property is insured in accordance with Section 6.1 of this Agreement and the Mortgage Loan Agreement pursuant to a blanket insurance Policy covering substantially all real property owned directly or indirectly by Indemnitor, including, without limitation, the Properties.

Appears in 1 contract

Samples: Senior Mezzanine Loan Agreement (Inland Western Retail Real Estate Trust Inc)

Tax and Insurance Reserve Account. The Tax and Insurance Reserve FundOn the Closing Date, the Monthly Debt Service Payment Amount and all other payments due hereunder Borrower shall deposit or under the other Loan Documents, shall cause to be added together and shall be paid as an aggregate sum by Borrower to Lender. Lender will apply deposited into the Tax and Insurance Reserve Fund Account amounts approved by Lender as the estimated cost of the Taxes and insurance premiums applicable to the Property, which amounts are set forth in the loan closing statement executed by Lender and Borrower contemporaneously herewith. Additionally, Borrower shall pay to Lender on each date that a monthly payment is due under the Loan (a “Payment Date”), one-twelfth of the Taxes and insurance premiums that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes and insurance premiums at least thirty (30) days prior to their respective due dates, which amounts shall be deposited into the Tax and Insurance Reserve Account pursuant to the Pledge Agreement executed by Borrower in favor of Lender (the “Pledge Agreement). Provided no Event of Default shall have occurred and be continuing, Lender will apply funds in the Tax and Insurance Reserve Account to payments of Taxes and Insurance Premiums insurance premiums required to be made by Borrower pursuant to the requirements of this Loan Agreement and under the MortgagesInstrument. In making any payment relating to the Tax and Insurance Reserve Fundinsurance premiums, Lender may do so according to any xxxx, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums) or from Borrower insurance premiums), without inquiry into the accuracy of such xxxx, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof; provided, however, Lender shall use reasonable efforts to pay such real property taxes sufficiently early to obtain the benefit of any available discounts to which it has knowledge. If the Any amount of remaining in the Tax and Insurance Reserve Fund shall exceed Account after the amounts due for Taxes, Other Charges and Insurance Premiums, Lender shall, Loan has been paid in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Reserve Fund. The Tax and Insurance Reserve Fund full shall be held by Lender in an interest-bearing account and shall at Lender’s option be held in Eligible Account at an Eligible Institutionreturned to Borrower. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the PropertiesProperty. If at any time Lender reasonably determines that the funds in the Tax and Insurance Reserve Fund is Account are not or will not be sufficient to pay Taxes, Other Charges Taxes at least thirty (30) days prior to their respective due dates and Insurance Premiums by insurance premiums at least thirty (30) days prior to the dates set forth aboveexpiration of the policies, Lender shall notify Borrower of such determination and Borrower shall increase their monthly payments to deposit with Lender by within ten (10) days thereafter the amount that Lender estimates is sufficient to make up the of such deficiency at least thirty (30) days prior to delinquency of the Taxes or Insurance Premiums. Any Tax and Insurance Reserve Funds remaining after the Debt has been paid in full shall be paid to Borrower. Notwithstanding anything to the contrary hereinbefore contained, Lender shall waive the requirement set forth herein for Borrower to make deposits for the payment of Insurance Premiums into the Tax and Insurance Reserve Fund so long as (a) no Event of Default has occurred and is continuing, and (b) Borrower has provided Lender with satisfactory evidence (as determined by Lender) that each Individual Property is insured in accordance with Section 6.1 of this Agreement and the Mortgage Loan Agreement pursuant to a blanket insurance Policy covering substantially all real property owned directly or indirectly by Indemnitor, including, without limitation, the Properties.

Appears in 1 contract

Samples: Construction Loan Agreement (CNL Income Properties Inc)

Tax and Insurance Reserve Account. The Tax and Insurance Reserve FundFunds and the payments of interest or principal or both, payable pursuant to the Monthly Debt Service Payment Amount and all other payments due hereunder or under the other Loan DocumentsNote, shall be added together and shall be paid as an aggregate sum by Borrower to Lender. Lender will apply the Tax and Insurance Reserve Fund Funds to payments of Taxes and Insurance Premiums required to be made by Borrower pursuant to this Agreement Section 5.1.2 hereof and under each Security Instrument for each of those Properties for which the MortgagesTax and Insurance Reserve Funds are being reserved hereunder. In making any payment relating to the Tax and Insurance Reserve FundAccount, Lender may do so according to any xxxx, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums) or from Borrower ), without inquiry into the accuracy of such xxxx, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof; provided, however, Lender shall use reasonable efforts to pay such real property taxes sufficiently early to obtain the benefit of any available discounts to which it has knowledge. If the amount of the Tax and Insurance Reserve Fund Funds shall exceed the amounts due for Taxes, Other Charges Taxes and Insurance PremiumsPremiums pursuant to Section 5.1.2 hereof, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Reserve Fund. The Tax and Insurance Reserve Fund shall be held by Lender in an interest-bearing account and shall at Lender’s option be held in Eligible Account at an Eligible Institution. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the PropertiesAccount. If at any time Lender reasonably determines that the amount then on deposit in the Tax and Insurance Reserve Fund Account is not or will not be sufficient to pay Taxes, Other Charges Taxes and Insurance Premiums by the dates set forth in (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase their its monthly payments to Lender by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to delinquency of the Taxes or Insurance Premiumsand/or thirty (30) days prior to expiration of the Policies, as the case may be. Any Notwithstanding anything contained in this clause (a) to the contrary, the Tax and Insurance Reserve Funds remaining after the Debt has been paid in full shall not include, and Borrower shall be paid responsible to Borrower. Notwithstanding anything pay, or cause to the contrary hereinbefore containedbe paid, Lender shall waive the requirement set forth herein for Borrower to make deposits for the payment of all Taxes and Insurance Premiums into the Tax and Insurance Reserve Fund so long as (a) no Event of Default has occurred and is continuing, and (b) Borrower has provided Lender required to be paid with satisfactory evidence (as determined by Lender) that each Individual respect to any Property is insured in accordance with Section 6.1 of this Agreement and the Mortgage Loan Agreement pursuant subject to a blanket insurance Policy covering substantially all real property owned directly or indirectly by IndemnitorLease, which Lease provides that every monetary and non-monetary obligation associated with managing, owning, developing and operating such Property, including, without limitation, the Propertiesobligation to pay Taxes and Insurance Premiums, is an obligation of Wachovia or an Acceptable Replacement Tenant (i.e., a “triple net” Lease).

Appears in 1 contract

Samples: Loan Agreement (American Financial Realty Trust)

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Tax and Insurance Reserve Account. The Tax and Insurance Reserve Fund, the Monthly Debt Service Payment Amount and all other payments due hereunder or under the other Loan Documents, shall be added together and shall be paid as an aggregate sum by Borrower and Maryland Owner to Lender. Lender will apply the Tax and Insurance Reserve Fund to payments of Taxes and Insurance Premiums required to be made by Borrower and Maryland Owner pursuant to this Agreement and under the Mortgages. In making any payment relating to the Tax and Insurance Reserve Fund, Lender may do so according to any xxxx, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums) or from Borrower or Maryland Owner without inquiry into the accuracy of such xxxx, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof; provided, however, Lender shall use reasonable efforts to pay such real property taxes sufficiently early to obtain the benefit of any available discounts to which it has knowledge. If the amount of the Tax and Insurance Reserve Fund shall -100- exceed the amounts due for Taxes, Other Charges and Insurance Premiums, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Reserve Fund. The Tax and Insurance Reserve Fund shall be held by Lender in an interest-bearing account and shall at Lender’s option be held in Eligible Account at an Eligible Institution. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Properties. If at any time Lender reasonably determines that the Tax and Insurance Reserve Fund is not or will not be sufficient to pay Taxes, Other Charges and Insurance Premiums by the dates set forth above, Lender shall notify Borrower and Maryland Owner of such determination and Borrower and Maryland Owner shall increase their monthly payments to Lender by the amount that Lender estimates is sufficient to make up the deficiency at least thirty (30) days prior to delinquency of the Taxes or Insurance Premiums. Any Tax and Insurance Reserve Funds remaining after the Debt has been paid in full shall be paid (a) to Senior Mezzanine Lender to be held by Senior Mezzanine Lender pursuant to the Senior Mezzanine Loan Agreement for purposes similar to those described in this Section 7.2, (b) if the Senior Mezzanine Loan is no longer outstanding, but the Junior Mezzanine Loan is outstanding, then to Junior Mezzanine Lender to be held by Junior Mezzanine Lender pursuant to the Junior Mezzanine Loan Agreement for purposes similar to those described in this Section 7.2, or (c) if neither the Senior Mezzanine Loan nor the Junior Mezzanine Loan is then outstanding, then to Borrower. Notwithstanding anything to the contrary hereinbefore contained, Lender shall waive the requirement set forth herein for Borrower and Maryland Owner to make deposits for the payment of Insurance Premiums into the Tax and Insurance Reserve Fund so long as (a) no Event of Default has occurred and is continuing, and (b) Borrower has and Maryland Owner have provided Lender with satisfactory evidence (as determined by Lender) that each Individual Property is insured in accordance with Section 6.1 of this Agreement and the Mortgage Loan Agreement pursuant to a blanket insurance Policy covering substantially all real property owned directly or indirectly by Indemnitor, including, without limitation, the Properties.. Section 7.3

Appears in 1 contract

Samples: Loan Agreement (Inland Western Retail Real Estate Trust Inc)

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