Common use of Loan Expense Reserves Clause in Contracts

Loan Expense Reserves. If Servicer determines, in its reasonable judgment, that Borrower has defaulted or is reasonably likely to default in its payment or other obligations under the Loan Documents and that Loan Expenses are reasonably likely to be incurred to enforce the rights of the Lenders thereunder, Servicer shall have the right (in addition to the Servicer’s right to include adequate reserves as part of a Loan Expense Request) to retain in the Trust Account an amount not to exceed three months’ interest under the Secured Note in order to pay for such enforcement costs (“Loan Expense Reserves”).

Loan Expense Reserves. If Servicer determines, in its reasonable judgment, that Borrower has defaulted or is reasonably likely to default in its payment or other obligations under the Loan Documents and that Loan Expenses costs are reasonably likely to be incurred to enforce the rights of the Lenders thereunder, Servicer shall have the right (in addition to the Servicer’s right to include adequate reserves as part of a Loan Expense Request) to retain in the Trust Account an amount not to exceed three months’ interest under the Secured Note in order to pay for such enforcement costs (“Loan Expense Reserves”).