Escrows and Reserves Clause Samples
The "Escrows and Reserves" clause establishes requirements for setting aside funds or assets to be held by a neutral third party or in a designated account to ensure the fulfillment of certain obligations under the agreement. Typically, this clause details when and how funds are deposited, the conditions for their release, and the responsibilities of the parties involved. For example, a portion of a purchase price might be held in escrow until specific conditions are met, or reserves may be maintained to cover potential future liabilities. The core function of this clause is to provide security and assurance that obligations will be met, thereby reducing risk and building trust between the parties.
Escrows and Reserves. If Senior Lender is collecting payments from Borrower to be escrowed for the payment of real estate taxes, assessments, insurance premiums, and like charges or to set up a special purpose reserve fund, THDA shall not, separately, require payments from Borrower to be escrowed for such purposes, provided the escrow or reserve being administered by Senior Lender is reasonably acceptable to THDA and is being funded in an amount approved by THDA. Senior Lender and Borrower acknowledge and agree that, except as provided in this Section 145, THDA’s prior written consent, which shall not be unreasonably withheld, is required before funds may be disbursed from any operating reserve and/or replacement reserve or any such other, similar reserve, however, Borrower may shall obtain the consent of THDA to any such disbursement before requesting disbursements from the Senior Lender. So long as there is no default under the Loan Documents, Senior Lender may disburse funds for real estate taxes and insurance premiums for the Property as and when the same become due without THDA’s consent. If Senior Lender stops collecting some or any escrow payments from Borrower before the THDA Loan has been paid in full, THDA shall have the immediate right to require the establishment of any such escrow or reserve. If the Senior Loan is paid in full before the THDA Loan is paid in full and if the Senior Lender is holding any escrow or reserve amounts at such time, it shall promptly transfer the balance of any such escrow or reserve to THDA or its designee. [ADD THIS SENTENCE IF HUD INSURANCE IS INVOLVED: Upon default under the Senior Loan documents and to the extent permitted by the Senior Loan Documents, the Senior Lender may apply the balances of the escrow and reserve accounts to reduce the balance of the Senior Loan.]
Escrows and Reserves. If Senior Lender is collecting payments from Borrower to be escrowed for the payment of real estate taxes, assessments, insurance premiums, and like charges, the Authority shall not enforce any similar provisions of the Authority Loan Documents, provided the escrow or reserve being administered by Senior Lender is being funded with an equal or greater amount than the amount required under the Authority Loan Documents and is otherwise sufficient to accomplish the same objectives as the escrow or reserve set forth in the Authority Loan Documents. However, if Senior Lender is separately collecting and administering a reserve that is an operating assurance reserve, operating deficit reserve or a replacement reserve (as those reserves are described in the Authority Loan Documents), Senior Lender acknowledges and agrees that the Authority's prior written consent is required before funds may be disbursed from any such reserve. If Senior Lender stops collecting such amounts from Borrower before the Authority Loan has been paid in full, the Authority shall have the immediate right to enforce the provisions of the Authority Loan Documents relating to any such escrow or reserve. If the Senior Loan is paid in full before the Authority Loan is paid in full and if the Senior Lender is holding any escrow or reserve amounts at such time, it shall promptly transfer the balance of any such escrow or reserve to the Authority or its designee.
Escrows and Reserves. The Mortgage Loan Schedule contains a list of all balances in all escrow accounts held by any Purchased Entity for Taxes, governmental assessments, insurance premiums, water, sewer and municipal charges, deposits, security deposits, replacement reserves, tenant improvement costs or holdbacks, or other escrowed funds relating to the Mortgage Loans owned by the Purchased Entities (collectively, the "Mortgage Loan Holdbacks"). All escrow payments relating to each such Mortgage Loan that, as of the Closing Date, have been collected by a Purchased Entity, have been collected and paid in accordance with the Loan Documents and applicable Law. Any Purchased Entity's failure to collect, as of the Closing Date, any escrow payments required to be collected by the applicable Loan Documents will have no material adverse effect on such Purchased Entity's ability to collect such escrow payments after the Closing. The balance of each account constituting escrow payments collected by the Purchased Entities relating to each such Mortgage Loan as of the Closing Date is listed on the Mortgage Loan Schedule. Except for the escrow payments listed in the Mortgage Loan Schedule (including Mortgage Loan Holdbacks), no Purchased Entity holds any funds or property of or owes any amounts or property to any Obligor and no Purchased Entity has effected or received the benefit of any setoff against any Obligor on account of any such Mortgage Loans.
Escrows and Reserves. Lender acknowledges that as of the date hereof, it holds a tax escrow account with a balance of $129,316.08, an insurance escrow account with a balance of $0.00 and a replacement reserve account with a balance of $43,509.27.
Escrows and Reserves. If Private Lender is collecting payments from Borrower to be escrowed for the payment of real estate taxes, assessments, insurance premiums, and like charges or to set up a special purpose reserve fund, THDA shall not, separately, require payments from Borrower to be escrowed for such purposes, provided the escrow or reserve being administered by Private Lender is acceptable to THDA and is being funded in an amount approved by THDA. Private Lender acknowledges and agrees that THDA’s prior written consent, which shall not be unreasonably withheld, is required before funds may be disbursed from any operating reserve and/or replacement reserve or any such other, similar reserve. If Private Lender stops collecting some or any escrow payments from Borrower before the THDA Loan has been paid in full, THDA shall have the immediate right to require the establishment of any such escrow or reserve. If the Private Loan is paid in full before the THDA Loan is paid in full and if the Private Lender is holding any escrow or reserve amounts at such time, it shall promptly transfer the balance of any such escrow or reserve to THDA or its designee.
Escrows and Reserves. At Closing, the Contributors shall receive credit for the amount of all escrows and reserves deposited or held in connection with the First Mortgage, provided, however, that no credit shall be made for any escrow or reserve which is inconsistent with the General Partner's representations under Section 4.2(j) hereof.
Escrows and Reserves. If [Senior/Private] Lender is collecting payments from Borrower to be escrowed for the payment of real estate taxes, assessments, insurance premiums, and like charges or to set up a special purpose reserve fund, THDA shall not, separately, require payments from Borrower to be escrowed for such purposes, provided the escrow or reserve being administered by [Senior/Private] Lender is reasonably acceptable to THDA and is being funded in an amount approved by THDA. [Senior/Private] ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇ acknowledges and agrees that THDA’s prior written consent, which shall not be unreasonably withheld, is required before funds may be disbursed from any operating reserve and/or replacement reserve or any such other, similar reserve. If [Senior/Private] Lender stops collecting some or any escrow payments from Borrower before the THDA Loan has been paid in full, THDA shall have the immediate right to require the establishment of any such escrow or reserve. If the [Senior/Private] Loan is paid in full before the THDA Loan is paid in full and if the [Senior/Private] Lender is holding any escrow or reserve amounts at such time, it shall promptly transfer the balance of any such escrow or reserve to THDA or its designee.
Escrows and Reserves. If any reserve or escrow account required to funded by Tenant pursuant to this Lease or pursuant to any requirement of Primary Lender or pursuant to any Primary Mortgage or other Facility Mortgage or other loan or security document executed by Tenant or any Subtenant pursuant to the requirements of any lender to Landlord, such reserve or escrow account shall be used only for the purposes stated in this Lease or for the purposes for which such escrow or reserve was created. So long as an Event of Default under this Lease has not occurred and is not continuing, if any funds in any such reserve or escrow account are applied by Primary Lender or any other Mortgagee to indebtedness of Landlord or for any other purpose than the tax, insurance, repairs and capital expenditures for the Facility Properties, expansion of the Facilities, repair and restoration of a damaged or partially taken Facility, and other property-related expenditures for which such reserves or escrows were created, or any such funds are converted by Landlord or its creditors, then Tenant shall have the right to offset against Rent the amount so applied to Landlord indebtedness or other purposes or so converted. If an Event of Default has occurred and is then continuing under this Lease, then Landlord may apply any such funds to the Obligations in such manner as Landlord may be entitled to do under this Lease.