Common use of Tax Escrows — Letter of Credit Clause in Contracts

Tax Escrows — Letter of Credit. (a) In the event that Borrower shall be required to make monthly escrow payments for taxes, Borrower may, upon written notice to Lender, elect to provide in lieu of the required deposits for taxes a Letter of Credit in accordance with this subsection and pursuant to Section 6.15 of this Agreement. Any Letter of Credit delivered to Xxxxxx Xxx in accordance with this subsection shall be a clean, irrevocable Letter of Credit, naming Xxxxxx Mae as beneficiary, in the amount equal to the highest aggregate amount of any tax balance for the Mortgaged Property on an annual basis, which amount shall be determined in Xxxxxx Mae’s sole discretion (the “Maximum Escrow Amount”).

Tax Escrows — Letter of Credit. (a) In the event that Borrower shall be required to make monthly escrow payments for taxes, Borrower may, upon written notice to Lender, elect to provide in lieu of the required deposits for taxes a Letter of Credit in accordance with this subsection and pursuant to Section 6.15 of this Agreement. Any Letter of Credit delivered to Xxxxxx Xxx Mae in accordance with this subsection shall be a clean, irrevocable Letter of Credit, naming Xxxxxx Mae Xxx as beneficiary, in the amount equal to the highest aggregate amount of any tax balance for the Mortgaged Property on an annual basis, which amount shall be determined in Xxxxxx Mae’s sole discretion (the “Maximum Escrow Amount”).