Failure to Make Replacements. (a) Upon the occurrence of an Event of Default which results from Borrower’s failure to comply in any material respect with any provision of this Section 16.4, Lender may use the Replacement Reserve Fund (or any portion thereof) for any purpose, including but not limited to completion of the Replacements as provided in Section 16.4.3, or for any other repair or replacement to any Individual Property or toward payment of the Indebtedness in such order, proportion and priority as Lender may determine in its sole discretion. Lender’s right to withdraw and apply the Replacement Reserve Funds shall be in addition to all other rights and remedies provided to Lender under this Agreement and the other Loan Documents. (b) Nothing in this Agreement shall obligate Lender to apply all or any portion of the Replacement Reserve Fund on account of an Event of Default to payment of the Indebtedness or in any specific order or priority.
Appears in 2 contracts
Sources: Loan and Security Agreement (KBS Real Estate Investment Trust, Inc.), Loan and Security Agreement (American Financial Realty Trust)