Common use of Deposit for Premiums Clause in Contracts

Deposit for Premiums. Upon the occurrence of and during a monetary Event of Default that remains uncured or a failure to pay insurance premiums, after applicable cure periods and at Lender’s option and election, Borrower shall deposit with Lender an amount equal to 1/12th of the amount which Lender estimates will be required to make the next annual payments of the premium for the policies of insurance referred to in this section, multiplied by the number of whole and partial months which have elapsed since the most recent policy anniversary date for each such policy (“Insurance Premium”). After such election, with each monthly payment under the Note, Borrower will deposit an amount equal to 1/12th of the amount which Lender estimates will be required to pay the next required annual premium for each insurance policy referred to in this section. The purpose of these provisions is to provide Lender with sufficient funds on hand to pay all such Insurance Premiums thirty (30) days before the date on which they become past due. Borrower shall, within ten (10) days after receipt of demand therefor, deposit such additional funds as are necessary to make up any deficiencies in amounts necessary to pay such Insurance Premiums when due. Provided no default exists hereunder or under any Loan Document, Lender will apply the amounts so deposited to the payment of such Insurance Premiums when due, but in no event will Lender be liable for any interest on any amount so deposited, and the money so received may be held and commingled with Lender’s own funds.

Deposit for Premiums. Upon Within ten (10) days after written demand made by Lender after the occurrence of and during a monetary any Event of Default that remains uncured or a failure to pay insurance premiums, after applicable cure periods and at Lender’s option and electionDefault, Borrower shall deposit with Lender an amount equal to 1/12th of the amount which Lender estimates will be required to make the next annual payments of the premium premiums for the policies of insurance referred to in this sectionSection, multiplied by the number of whole and partial months which have elapsed since the date one month prior to the most recent policy anniversary date for each such policy (“Insurance Premium”)policy. After such electionThereafter, with each monthly payment under the Note, Borrower will deposit an amount equal to 1/12th of the amount which Lender estimates will be required to pay the next required annual premium for each insurance policy referred to in this sectionSection. The purpose of these provisions is to provide Lender with sufficient funds on hand to pay all such Insurance Premiums premiums thirty (30) days before the date on which they become past due. If the Lender, in its sole discretion, determines that the funds impounded hereunder are, or will be, insufficient, Borrower shall, within ten (10) days after receipt of shall upon demand therefor, deposit pay such additional funds sums as are Lender shall determine necessary to make up and shall pay any deficiencies in amounts necessary to pay such Insurance Premiums when dueincreased monthly charges requested by Lender. Provided no default Default or Event of Default exists hereunder or under any Loan Documenthereunder, Lender will apply the amounts so deposited to the payment of such Insurance Premiums insurance premiums when due, but in no event will Lender be liable for any interest on any amount amounts so deposited, and the money so received may be held and commingled with Lender’s own funds.