Common use of Payment Provision Clause in Contracts

Payment Provision. a. Beginning January 1. 1994 and continuing through December 31, 1994 the mortgagor will remit by the first of the month a minimum payment sufficient to pay through 87 percent of interest. This payment is currently $24,000.00 per month. The payment shall be increased annually as follows: % of Monthly Year Accruing Interest 1995 25,000 300,000 91% 1996 26,750 321,000 97% 1997 27,750 333,000 101% 1998 28,500 342,000 103% 1999 30,500 366,000 110% 2000 31,500 378,000 114% 2001 33,000 396,000 120% 2002 34,000 408,000 123% 93101802.44 On January 1, 2003 the mortgage shall be recast and the mortgage payment set to amortize the then existing balance over the remaining term (239 months). b. Past delinquency, if any, in the Reserve f or Replacement is hereby forgiven. Payments into the Reserve for Replacement for the duration of this workout period are hereby waived. c. Any funds over $25,000.00 (approximately one month's principal and interest) remaining in the operating account each month after payment of project operating expenses will be remitted in addition to the minimum monthly payment. Mortgagor shall establish an escrow account to assure timely payment of insurance and heating bills as they come due. d. A four percent late charge may be assessed against payments not received by the fifteenth of the month. e. At no time will the owner permit any delinquency to accrue in either the service charge due HUD or tax escrow as billed by HUD each month. f. Mortgagor remitted all of the net operating income to HUD. No additional late charges other than those assessed pursuant to paragraph 3(d) will be charged for the duration of this workout period.