Common use of Additional Reserves Clause in Contracts

Additional Reserves. (a) On the date hereof each Borrower identified on Schedule 13 shall deposit with Lender the amount of the Additional Reserve listed opposite such Borrower's name on Schedule 13 (each such deposit, an "ADDITIONAL RESERVE FUND"); provided, however, that in lieu of any Additional Reserve Fund, the applicable Borrower may deliver to Lender a Letter of Credit (an "ADDITIONAL RESERVE L/C") in a face amount equal to such Borrower's required Additional Reserve Fund. (b) After the date hereof any such Borrower shall have the option at any time, provided no Event of Default then exists, to deliver to Lender a Letter of Credit in a face amount equal to the amount then in such Borrower's Additional Reserve Fund (also, an "ADDITIONAL RESERVE L/C"). Upon delivery to Lender of any such Additional Reserve L/C, Lender shall return to the applicable Borrower the funds then on deposit in such Borrower's Additional Reserve Fund. (c) If at any time the issuer of an Additional Reserve L/C ceases to be an Approved Bank, the applicable Borrower shall, within 30 days after request by Lender, deliver to Lender a new Additional Reserve L/C issued by an Approved Bank (or immediately available funds in such amount for deposit into the applicable Additional Reserve Fund), whereupon Lender shall return the original Additional Reserve L/C in question to the applicable Borrower. (d) If a Borrower fails to comply with the provisions of Section 4.17(c), or if at any time an Additional Reserve L/C is not replaced or renewed at least 30 days prior to its date of expiration, Lender may draw on such Additional Reserve L/C and the proceeds thereof shall be deposited into the applicable Additional Reserve Fund. (e) If for any reason an Additional Reserve L/C shall expire without a replacement Additional Reserve L/C having been delivered to Lender, the applicable Borrower shall, within 5 days after demand, deliver to Lender a new Additional Reserve L/C (or immediately available funds in such amount for deposit into the applicable Additional Reserve Fund). (i) Additional Reserve No. 1 shall be released to Plaza West Covina LLC ("COVINA BORROWER") within 30 days after Covina Borrower delivers to Lender a request therefor accompanied by a written confirmation from the Redevelopment Agency of the City of West Covina (the "COVINA AGENCY") reasonably acceptable to Lender that no sums are due from Covina Borrower to Covina Agency with respect to the matters referred to in paragraph number 5 of the estoppel letter dated November 24, 1998 from the Covina Agency, or that the amount due with respect to such matters is equal to or less than the then amount of Additional Reserve No. 1 (and, in the latter case, Lender may release such reserve by making direct payment to the Covina Agency of the amount due it and by disbursing any balance to Covina Borrower). Notwithstanding the foregoing, Lender may, upon prior notice to Covina Borrower, pay over Additional Reserve No. 1 to the Covina Agency at any time when, in the judgment of Lender, the entitlement of Covina Agency thereto is established.

Additional Reserves. (a) On Upon the date hereof each Borrower identified on Schedule 13 shall deposit with Lender occurrence of an Event of Default and within 10 days’ notice from the amount of the Additional Reserve listed opposite such Borrower's name on Schedule 13 (each such deposit, an "ADDITIONAL RESERVE FUND"); provided, however, that in lieu of any Additional Reserve FundLender, the applicable Borrower may deliver shall establish additional reserves with the Lender to pay the reasonable costs of insurance premiums, utility charges, and/or the performance of specific maintenance, repairs or capital improvements to the Property or any work for the prevention, clean-up or remediation of environmental, health or safety conditions at the Property, as determined by the Lender a Letter of Credit (an "ADDITIONAL RESERVE L/C") in a face amount equal to such Borrower's required Additional Reserve Fundacting reasonably. (b) After Upon completion or payment of any reserve item set out in this Section 3.13(3), the date hereof Borrower may submit to the Lender a request for payment or release of any such Borrower reserved funds in a form specified by the Lender which shall have include and certify (a) the option at any timeitem and costs incurred (including evidence of completion or payment), (b) that all related work has been completed in a good and workmanlike manner in compliance with the Loan Documents and all Applicable Laws, provided and (c) evidence of compliance with all the applicable lien laws, including compliance with all holdback requirements and evidence that no lien is registered against the Property. Provided no Event of Default then existsexists and upon the Lender’s verification of the payment request, to deliver to the Lender a Letter of Credit in a face amount equal shall pay to the Borrower an amount then in approved by the Lender from the applicable reserve, less any Lender’s costs and expenses with respect thereto. The Lender shall not be required to make disbursements of less than $5,000.00 or more frequently than once monthly. The Lender reserves the right to make any such Borrower's Additional Reserve Fund (also, an "ADDITIONAL RESERVE L/C")disbursement directly to the person(s) entitled to receive such payment and the Borrower shall execute and deliver all necessary directions. Upon delivery to the occurrence of an Event of Default, the Lender of any such Additional Reserve L/Cmay retain all reserves held and, Lender shall return at its sole option, apply same to the applicable Borrower Loan Indebtedness, or to any costs and expenses for which the funds then reserve is held, or to cure any Event of Default. The Lender has the sole right to direct the investment of the reserves. The servicer may hold and administer all reserves for the Lender. All interest accruing on deposit in such Borrower's Additional Reserve Fund. (c) If at any time the issuer of an Additional Reserve L/C ceases to reserves shall be an Approved Bankfor the Lender’s sole benefit, the applicable Borrower shall, within 30 days after request by Lender, deliver to Lender a new Additional Reserve L/C issued by an Approved Bank (or immediately available funds in such amount for deposit into the applicable Additional Reserve Fund), whereupon Lender shall return the original Additional Reserve L/C in question subject to the applicable Borrowerfollowing. (d) If a Borrower fails to comply with the provisions of Section 4.17(c), or if at any time an Additional Reserve L/C is not replaced or renewed at least 30 days prior to its date of expiration, Lender may draw on such Additional Reserve L/C and the proceeds thereof shall be deposited into the applicable Additional Reserve Fund. (e) If for any reason an Additional Reserve L/C shall expire without a replacement Additional Reserve L/C having been delivered to Lender, the applicable Borrower shall, within 5 days after demand, deliver to Lender a new Additional Reserve L/C (or immediately available funds in such amount for deposit into the applicable Additional Reserve Fund). (i) Additional Reserve No. 1 shall be released to Plaza West Covina LLC ("COVINA BORROWER") within 30 days after Covina Borrower delivers to Lender a request therefor accompanied by a written confirmation from the Redevelopment Agency of the City of West Covina (the "COVINA AGENCY") reasonably acceptable to Lender that no sums are due from Covina Borrower to Covina Agency with respect to the matters referred to in paragraph number 5 of the estoppel letter dated November 24, 1998 from the Covina Agency, or that the amount due with respect to such matters is equal to or less than the then amount of Additional Reserve No. 1 (and, in the latter case, Lender may release such reserve by making direct payment to the Covina Agency of the amount due it and by disbursing any balance to Covina Borrower). Notwithstanding the foregoing, Lender may, upon prior notice to Covina Borrower, pay over Additional Reserve No. 1 to the Covina Agency at any time when, in the judgment of Lender, the entitlement of Covina Agency thereto is established.