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.
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