Common use of Tax and Insurance Reserve Fund Clause in Contracts

Tax and Insurance Reserve Fund. Borrower shall deposit with Lender on each Payment Date (irrespective of whether Future Advances have been made), or if the B Note has been prepaid in full and the Future Advance Commitment terminated, the Payment Date, (a) one-twelfth of the Taxes 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 at least thirty (30) days prior to their respective due dates, and (b) one twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (said amounts in subclauses (a) and (b) above hereinafter called the “Tax and Insurance Reserve Fund”). The Tax and Insurance Reserve Fund and the monthly Debt Service amount, 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 Section 5.1.2 and Section 6.1.2 and under the Security Instrument. 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), 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. If the amount of the Tax and Insurance Reserve Fund shall exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.1.2 and Section 6.1.2, Lender shall return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Reserve Fund. Any amount remaining in the Tax and Insurance Reserve Fund after the Debt has been paid in full shall be returned to Borrower. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Property. If at any time Lender reasonably determines that the Tax and Insurance Reserve Fund is not or will not be sufficient to pay Taxes and Insurance Premiums by the dates set forth in subclauses (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase 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 the due date of the Taxes and/or thirty (30) days prior to expiration of the Policies, as the case may be.

Tax and Insurance Reserve Fund. Borrower shall deposit with Lender on each Payment Date (irrespective of whether Future Advances have been made), or if the B Note has been prepaid in full and the Future Advance Commitment terminated, the Payment Date, (a) one-twelfth of the Taxes 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 at least thirty (30) days prior to their respective due dates, and (b) one twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (said amounts in subclauses (a) and (b) above hereinafter called the “Tax and Insurance Reserve Fund”). The Tax and Insurance Reserve Fund and the monthly Debt Service amount, 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 Section 5.1.2 and Section 6.1.2 and under the Security Instrument. 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), 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. If the amount of the Tax and Insurance Reserve Fund shall exceed the amounts due for Taxes and Insurance Premiums pursuant to Section 5.1.2 and Section 6.1.2, Lender shall return any excess to Borrower or credit such excess against future payments to be made to the Tax and Insurance Reserve Fund. Any amount remaining in the Tax and Insurance Reserve Fund after the Debt has been paid in full shall be returned to Borrower. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Property. If at any time Lender reasonably determines that the Tax and Insurance Reserve Fund is not or will not be sufficient to pay Taxes and Insurance Premiums by the dates set forth in subclauses (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase 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 the due date of the Taxes and/or thirty (30) days prior to expiration of the Policies, as the case may be.Insurance

Tax and Insurance Reserve Fund. Upon the occurrence and during the continuance of a Cash Sweep Period, Borrower shall deposit with deliver to Lender to be held in escrow and disbursed pursuant to this Section 7.2, on each Payment Date (irrespective of whether Future Advances have been made), or if the B Note has been prepaid in full and the Future Advance Commitment terminated, the Payment Datethereafter, (ai) one-twelfth (1/12th) of the Taxes and Other Charges that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender in the Tax and Insurance Reserve Fund sufficient funds to pay all such Taxes and Other Charges at least thirty (30) days prior to their respective due dates, dates and (bii) one one-twelfth (1/12th) of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the Policies upon the expiration thereof (unless an Event of Default has occurred and is continuing, solely to the extent the applicable insurance Policies are not a blanket insurance Policy) in order to accumulate with Lender in the Tax and Insurance Reserve Fund sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (said amounts in subclauses (a) and (b) above so deposited hereinafter called the “Tax and Insurance Reserve Fund”). The Tax and Insurance Reserve Fund and the monthly Debt Service amountProvided no Event of Default exists, 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 the Approved Annual Budget, Section 5.1.2 and Section 6.1.2 hereof and under the Security InstrumentInstruments. In making any payment relating to the Tax and Insurance Reserve Fund, Lender may do so according to any xxxxbxxx, statement or estimate procured from the appropriate public office (with respect to Taxes) ), or insurer or agent (with respect to Insurance Premiums), without inquiry into the accuracy of such xxxxbxxx, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the amount of the Tax and Insurance Reserve Fund shall exceed the amounts due for Taxes Taxes, Other Charges and Insurance Premiums pursuant to the Approved Annual Budget, Section 5.1.2 and Section 6.1.2hereof, Lender shall 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. Any amount remaining in the Tax and Insurance Reserve Fund after the Debt has been paid in full shall be returned to Borrowerdisbursed in accordance with Section 7.9 below. In allocating such excess, Lender may deal with the Person shown on the records of Lender to be the owner of the Property. If at any time Lender reasonably determines that the Tax and Insurance Reserve Fund is not or will not be sufficient to pay Taxes and Taxes, Other Charges or Insurance Premiums by the dates set forth in subclauses (a) and (b) above, Lender shall notify Borrower of such determination and Borrower shall increase 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 the due date of the Taxes and Other Charges and/or thirty (30) days prior to expiration of the Policies, as the case may be. Notwithstanding anything to the contrary herein, if insurance for the Property is provided through a blanket insurance Policy acceptable to Lender, Borrower shall not be required to fund the Tax and Insurance Reserve Fund with funds for Insurance Premiums except during the continuation of an Event of Default.