Interest Reserve. A portion of the proceeds of the Loan in the amount of Three Million and No/100 Dollars ($3,000,000.00) shall be retained by Lenders to fund an interest reserve (the "INTEREST RESERVE") and shall be advanced by Lenders to pay the interest due on the Loan to the extent that such interest for a calendar month exceeds Net Cash Flow from the Project for such calendar month, subject to the terms hereof. Lenders shall not be required to make any other disbursements from the Interest Reserve except as set forth above. No portion of the Interest Reserve shall bear interest hereunder unless and until such portion is advanced by Lenders. Absent a default hereunder or under any of the other Loan Documents, and subject to Agent's prior approval which may be withheld in Agent's sole discretion regardless of whether a default is then continuing under any of the Loan Documents, Lenders shall make disbursements from the Interest Reserve on the applicable due date for the payment of interest due on the Loan, in accordance with Section 1.4 hereof. Disbursements from the Interest Reserve shall be made no more than once a month, with the final disbursement to be made no later than the Maturity Date. The aggregate disbursements from the Interest Reserve shall not exceed Three Million and No/100 Dollars ($3,000,000.00). Nothing in this subsection 1.1.4 shall be deemed to relieve Borrower of its obligation to timely pay all interest as it comes due. If Borrower has not paid all interest due on the Loan on the due date pursuant to Section 1.4, and if Lenders make an advance of interest under this subsection which is greater than the required amount of such advance, then upon determination and notification thereof by Agent to Borrower, Borrower shall repay the excess advance within two (2) Business Days after Borrower's receipt of such notice (notwithstanding anything to the contrary contained in Section 1.6 hereof). Such repayment shall constitute a permitted prepayment of principal, without penalty of any sort, notwithstanding any other provision of this Amendment or the other Loan Documents to the contrary. For example: if prior to any Loan advance, on the first day of a calendar month, $100.00 of interest had accrued for the prior month (the "PRIOR MONTH") on the portion of the Loan advanced; and the Borrower paid no interest on such day; and Lenders advanced the entire $100.00 of interest due on that day (there being sufficient funds remaining in the Interest Reserve to do so...
Interest Reserve. In the event the Project Budget for a Construction Loan includes an interest reserve in the amount of interest expected to be paid during the term of such Construction Loan (an "Interest Reserve"), during construction of the applicable Project prior to the applicable Construction Completion Date amounts in such Interest Reserve will be advanced by Lenders from time to time as interest payments become due to pay regularly scheduled interest on such Construction Loan so long as (i) no Facility Event of Default has occurred hereunder, and (ii) with respect to the Project financed by such Construction Loan, no Project Event of Default has occurred hereunder. Interest will be payable by Borrower on that portion of any Interest Reserve actually disbursed by Lenders. Any Interest Reserve will not be included in the computation of the undisbursed portion of a Construction Loan for purposes of determining whether, with respect to the applicable Construction Loan, a Construction Loan Balance Default exists. If, for any reason other than payment by Borrower of interest from other than Advances of the applicable Construction Loan, Lenders do not advance funds from the Interest Reserve to pay interest when due (which shall only occur if an Event of Default described in subsection (i) and (ii) of this Section 3.7 shall have occurred), Agent shall so notify Borrower, in writing, and of the reason therefor, and Borrower shall have a period of five (5) days from such notification to pay the interest due; provided, however, that neither Lender shall have any obligation to make any further Advances hereunder (with respect to the particular Construction Loan involved or with respect to any other Construction Loan) until such time as such interest is paid. In the event any Interest Reserve is reduced to an amount less than the total amount of interest due or reasonably anticipated to become due in connection with the applicable Construction Loan (an "Interest Reserve Deficiency Default"), Agent will notify Borrower of such default and the amount of the deficiency, in writing, and Borrower shall deposit with Agent cash or the cash equivalent thereof within fifteen (15) days following notification from Agent; provided, however, that neither Lender shall have any obligation to make any further Advances hereunder (with respect to the particular Construction Loan involved or with respect to any other Construction Loan) until such time as Borrower has complied with the requirements ...
Interest Reserve. Except as provided in Section 2.7 Permitted Costs hereof, after the earlier of the issuance of certificate of occupancy for a Facility or the expiration of the Construction Phase, no further advances shall be made from the Interest Reserve in such Total Development Budget.
Interest Reserve. Borrower will deposit into the Interest Reserve Account on or before the Effective Date, $2,000,000.00.
Interest Reserve. (i) Notwithstanding anything to the contrary in this Agreement:
Interest Reserve. 29 Section 6.5. Owner's Contingency.................................... 29 Section 6.6. Cost Overruns and Savings; Change Order Reserve........ 29
Interest Reserve. Atlantic shall, on the date hereof, withhold from the proceeds of the Loans available for distribution the amount of Six Million, Eight Hundred Thirty-Five Thousand, Seven Hundred Thirty-Six Dollars ($6,835,736) (the "Interest Reserve"). Provided no Default exists hereunder, the Interest Reserve shall be disbursed for the payment of interest on the Loans as such interest becomes due and payable. Upon the occurrence of a Default hereunder, Atlantic shall have no obligation to make further disbursements from the Interest Reserve, and no Borrower shall be entitled to any such disbursements, until such Default is cured. Should interest payable on the Loans exceed the amount of the Interest Reserve, the Borrowers shall promptly pay such amounts. Upon the occurrence of an Event of Default, Atlantic may apply any undisbursed portion of the foregoing reserve against any of the obligations secured by the Security Documents as it sees fit or, at Atlantic's discretion, to the completion of and incomplete Improvements.
Interest Reserve. The Administrative Agent shall have received evidence that the Interest Reserve has been funded as required by Section 7.1.12.
Interest Reserve. Each Unit Loan Budget includes an interest reserve out of which the Lender shall automatically pay the monthly interest cost of each Loan when and as such interest payments are due under the Note up to the maximum amount specified in the applicable Unit Loan Budget.
Interest Reserve. At the Initial Closing, the Borrowers shall deposit funds in an amount equal to the Interest Reserve as of such Initial Closing, with the Escrow Agent, to be held by the Escrow Agent and disbursed pursuant to the Escrow Agreement. The Borrowers agree to promptly deposit additional funds upon the sale of any additional Notes or the disbursement of any portion of the Escrow Reserve to the Noteholders to ensure that at all times such Escrow Reserve represents two quarters’ interest under the then outstanding Notes.
