Interest on Property Reserves. Provided no Event of Default has occurred under any of the Loan Documents, Lender agrees to credit Borrower with interest earnings on the cash portion of the Property Reserves, (excluding however any cash proceeds resulting from Lender having drawn on any Letter of Credit or any renewal or replacement thereof); provided, however, that interest shall cease to be credited on any portion of the Property Reserves at such time as they have been disbursed to Borrower or otherwise applied in any manner provided in this Agreement or in the other Loan Documents. Interest shall be credited on the average balance of the cash portion of the Property Reserves for the preceding calendar month or any portion of such preceding calendar month on or before the tenth (10th) day of each calendar month at a rate equal to the thirty-day average of the daily 30-day Dealer Commercial Paper Rate as published in the Wall Street Journal or similar financial publication, less 200 basis points. Interest shall be disbursed to Borrower at such time and in the same manner as provided for disbursement of Property Reserves.
Appears in 7 contracts
Samples: Property Reserves Agreement (VMS National Properties Joint Venture), Property Reserves Agreement (VMS National Properties Joint Venture), Property Reserves Agreement (VMS National Properties Joint Venture)
