Common use of Additional Reserves Clause in Contracts

Additional Reserves. In the event that Lender at any time determines that the Reserves then being maintained pursuant to the Management Agreement are inadequate, Lender may require, in Lender's sole but good faith discretion, that Borrower establish or increase the amount of any reserves that Lender determines to be necessary or appropriate, provided that Lender shall provide Borrower with a reasonably detailed explanation of Lender's determination. All Reserves shall be maintained in cash (and not merely through accounting entries) and shall be held by Lender or by Manager pursuant to the Management Agreement. Lender shall have the right to approve in advance any use of the Reserves, in Lender's sole, but good faith discretion, except to the extent that Borrower does not have the right to approve the use of the Reserves pursuant to the Management Agreement.