Common use of Imposition Deposits Clause in Contracts

Imposition Deposits. (i) The Borrower shall deposit with the Lender, on or before the Initial Closing Date, cash in an amount equal to the highest aggregate monthly amount which would have been in escrow for Taxes and insurance premiums if individual escrow accounts were established for each Mortgaged Property in the Collateral Pool as of the Initial Closing Date, as such amount is determined by the Lender based on the DUS Guide. The amounts deposited under the preceding sentence are collectively referred to as the "Imposition Deposits." On or before the first day of each Loan Year after the Initial Closing Date, and on or before the Closing Date of a Collateral Substitution Request, a Collateral Addition Request or a Collateral Release Request, if the Lender determines, based on the foregoing methodology, that a modified amount is required to be deposited with the Lender as Imposition Deposits, the Borrower shall deposit any deficiency with the Lender, or the Lender shall release any overage to the Borrower, provided that, in the case of the latter, no Event of Default or Potential Event of Default then exists hereunder. The Borrower shall, subject to the Borrower's right to contest under Section 15(d) of the Security Instruments, pay each Imposition relating to a Mortgaged Property before the last date upon which such payment may be made without any penalty or interest charge being added. Subject to the Borrower's right to contest under Section 15(d) of the Security Instruments, the Borrower shall deliver to the Lender evidence that the Borrower has paid each Imposition within thirty days after making such payment. (ii) Imposition Deposits shall be held in an institution (which may be the Lender, if the Lender is such an institution) whose deposits or accounts are insured or guaranteed by a federal agency. The Lender shall not be obligated to open additional accounts or deposit Imposition Deposits in additional institutions when the amount of the Imposition Deposits exceeds the maximum amount of the federal deposit insurance or guaranty. So long as no Event of Default or Potential Event of Default has occurred and is continuing, the Lender shall release, or cause to be released, to the Borrower, not more frequently than once each month, interest on the Imposition Deposits at a per annum rate equal to LIBOR (as hereinafter defined) minus .65%, but not to exceed the actual amount of interest and other income earned by the Lender on the Imposition Deposits during such period of time. The Borrower hereby pledges and grants to the Lender a security interest in the Imposition Deposits

Imposition Deposits. If Tenant fails to pay any Impositions as and when due, or if Landlord’s lender requires Tenant to escrow Impositions then: (ia) The Borrower Tenant shall deposit with the LenderLandlord, on or before the Initial Closing DateLandlord’s lender, cash in if applicable, an amount equal to the highest aggregate monthly amount which would have been in escrow for Taxes and insurance premiums if individual escrow accounts were established for each Mortgaged Property in the Collateral Pool as one twelfth (1/12) of the Initial Closing Date, as such amount is determined by Impositions to become due with respect to the Lender based on the DUS Guide. The amounts deposited under the preceding sentence are collectively referred to as the "Imposition Deposits." On or before the first day of each Loan Year Premises between one (1) and thirteen (13) months after the Initial Closing Date, and on or before the Closing Date date of a Collateral Substitution Request, a Collateral Addition Request or a Collateral Release Request, if the Lender determines, based on the foregoing methodology, such deposit; provided that a modified amount is required to be deposited with the Lender as Imposition Deposits, the Borrower shall deposit any deficiency with the Lender, or the Lender shall release any overage to the Borrower, provided that, in the case of the latterfirst such deposit, Tenant shall deposit in addition, an amount which, when added to the aggregate amount of monthly deposits to be made here under with respect to Impositions to become due within thirteen (13) months after such first deposit, will provide (without interest) sufficient funds to pay such Impositions, one (1) month prior to the date when they are due. The amounts of such deposits (herein generally called "Imposition Deposits") shall be based upon Landlord's estimate of the amount of Impositions. Tenant shall promptly upon the demand of Landlord make additional Imposition Deposits as Landlord, or Landlord’s lender may from time to time require due to (i) failure of Tenant to make, Imposition Deposits in previous months, (ii) underestimation of the amounts of Impositions, due dates and amounts of Imposition, or (iii) application of the Imposition Deposits pursuant to Section 5.04(c). (b) Landlord shall, out of the Imposition Deposits, upon receipt by Landlord of the bills therefor, pay the Impositions or shall upon the presentation of receipted bills therefor, reimburse Tenant for such payments made by Tenant. If the total Imposition Deposits on hand shall not be sufficient to pay all of the Impositions when the same shall become due, then Tenant shall immediately pay to Landlord on demand the amount necessary to make up the deficiency. (c) Upon an Event of Default, Landlord may, at its option, apply any Imposition Deposits on hand to the obligations under this Lease. All Imposition Deposits are hereby pledged as additional security for the Lease, and shall be held by Landlord irrevocably to be applied for the purposes for which made as herein provided, and shall not be subject to the direction or control of Tenant. (d) Notwithstanding anything herein contained to the contrary, Landlord shall not be liable for any failure to apply the Imposition Deposits unless Tenant, while no Event of Default or Potential Event exists here under, shall have (i) requested Landlord in writing to make application of Default then exists hereunder. The Borrower shall, subject such Deposits to the Borrower's right to contest under Section 15(d) payment of the Security Instruments, pay each Imposition relating to a Mortgaged Property before the last date upon which Impositions and (ii) presented Landlord with bills for such payment may be made without any penalty or interest charge being added. Subject to the Borrower's right to contest under Section 15(d) of the Security Instruments, the Borrower shall deliver to the Lender evidence that the Borrower has paid each Imposition within thirty days after making such paymentImpositions. (iie) Imposition Deposits The provisions of this Section are for the benefit of Landlord, Landlord’s lender, if any, and Tenant alone. No provision of this Lease shall be held construed as creating in an institution (which may be the Lender, if the Lender is such an institution) whose deposits or accounts are insured or guaranteed by a federal agency. The Lender shall not be obligated any other party any rights in and to open additional accounts or deposit Imposition Deposits in additional institutions when the amount of the Imposition Deposits exceeds or any rights to have the maximum amount Deposits applied to payment of the federal deposit insurance Impositions. Landlord shall have no obligation or guaranty. So long as no Event of Default or Potential Event of Default has occurred and is continuing, the Lender shall release, or cause duty to be releasedany third party, to collect Imposition Deposits. (f) If Tenant’s lender requires that Imposition Deposits be held by Tenant’s lender, then Landlord and Landlord’s lender shall not require that Imposition Deposits be held by Landlord or Landlord’s lender at any time that Tenant’s lender is holding such Imposition Deposits provided, that Tenant’s lender agrees that it shall only be permitted to use the Borrower, not more frequently than once each month, interest on funds in the Imposition Deposits at a per annum rate equal to LIBOR (as hereinafter defined) minus .65%, but not to exceed the actual amount of interest pay Impositions and for no other income earned by the Lender on the Imposition Deposits during such period of time. The Borrower hereby pledges and grants to the Lender a security interest in the Imposition Depositspurpose.