Establishment; Funding Clause Samples
The "Establishment; Funding" clause defines the process for creating a particular entity, fund, or project and outlines the financial contributions required to support it. Typically, this clause specifies who is responsible for setting up the entity, the timeline for its formation, and the sources and amounts of initial and ongoing funding. For example, it may require each party to contribute a set amount of capital or resources by a certain date. The core function of this clause is to ensure that the entity or project is properly established and adequately funded from the outset, thereby reducing uncertainty and clarifying each party’s financial obligations.
Establishment; Funding. Upon the closing of the Loan, the parties shall establish the Replacement Reserve Fund and, if required by Lender, Borrower shall pay to Lender for deposit into the Replacement Reserve Fund, the amount of the initial Replacement Reserve Deposit. Commencing on the date the first installment of principal and/or interest is due under the Note and continuing on the same day of each successive month during the Loan term, Borrower shall pay to Lender for deposit into the Replacement Reserve Fund the monthly Replacement Reserve Deposit, together with its regular monthly payments of principal and interest as required by the Note and Security Instrument. The Replacement Reserve Fund shall be maintained and governed in accordance with this Agreement.
Establishment; Funding. (i) Upon the closing of the Loan, the parties shall establish the Replacement Reserve Fund and, if required by Lender, Borrower shall pay the Initial Deposit to Lender for deposit into the Replacement Reserve Fund.
(ii) Commencing on the date the first installment of principal and/or interest is due under the Note and continuing on the same day of each successive month until the end of the Review Period, Borrower shall pay the Monthly Deposit to Lender for deposit into the Replacement Reserve Fund, together with its regular monthly payments of principal and interest as required by the Note and Security Instrument.
(iii) Prior to the end of the Review Period, Lender will assess the physical condition of the Property. Lender may adjust the Monthly Deposit at the termination of the Review Period to reflect Lender's determination of the condition of the Property. Upon written notice from Lender or Loan Servicer, Borrower shall begin paying the Revised Monthly Deposit on the first monthly payment date of the Subsequent Review Period and shall continue paying the Revised Monthly Deposit until Lender further adjusts the Replacement Reserve Deposit during a Subsequent Review Period, if applicable. If Lender does not provide Borrower with written notice of a Revised Monthly Deposit, Borrower shall continue to pay the Monthly Deposit or the Revised Monthly Deposit then in effect.
Establishment; Funding. (i) On the date hereof, the parties shall establish the Replacement Reserve Fund and Mortgagor shall pay the Initial Deposit to Lender for deposit into the Replacement Reserve Fund.
(ii) Within thirty (30) days after the each of each fiscal year of the Borrower, commencing January 30, 2011, and continuing on the same day of each successive year until the Loan is paid in full, Mortgagor shall pay the Annual Deposit to Lender for deposit into the Replacement Reserve Fund.