Common use of Replacement Reserve Clause in Contracts

Replacement Reserve. At Closing, Borrower shall deposit with Lender (or its agent) $-0- and, pursuant to the Cash Management Agreement, Borrower shall deposit with Lender (or such agent) monthly, on the first day of each calendar month commencing with February 1, 2001, $17,738, for the purpose of creating a reserve for Capital Expenditures in accordance with the Capital Expenditure Budget then in effect (said funds, together with any interest thereon and additions thereto, the "Replacement Reserve"). The funds contained in the Replacement Reserve shall be utilized by Borrower solely for Capital Expenditures performed during the term of the Loan in accordance with Capital Expenditure Budget (as amended from time to time and which shall have been approved annually in advance by Lender commencing -49- with the Capital Expenditure Budget for the calendar year 2011), and shall not be used by Borrower for purposes for which any other Reserve is established. Within ten (10) days after written request from Borrower, Lender shall direct the Central Account Bank to disburse funds from the Replacement Reserve to pay for costs that have been incurred by Borrower for such Capital Expenditures, provided that (i) no Event of Default has occurred and is continuing, (ii) Borrower shall provide to Lender such documentation and certifications as Lender may reasonably request to substantiate the requirement for and entitlement to such disbursement, (iii) Borrower shall provide Lender with all invoices, receipts, lien waivers and other documentation of lawful and workmanlike progress or completion, lien-free status, and availability of sufficient funds, all as may be reasonably requested by Lender and Lender may require, at Borrower's expense, an inspection of the Property and/or a certificate of completion by a licensed independent architect approved by Lender.

Replacement Reserve. At Closingthe time of and in addition to the monthly -------------------- installments of interest and, if applicable, principal, due under the Notes, Borrower shall deposit with pay to Lender an amount equal to Three Thousand Two Hundred Forty and No/100 Dollars (or its agent$3,240.00) $-0- and, pursuant to the Cash Management Agreement, Borrower shall deposit with Lender (or such agent) monthly, on the first day of each calendar month commencing with February 1, 2001, $17,738, for the purpose of creating a reserve for Capital Expenditures in accordance with the Capital Expenditure Budget then in effect (said funds, together with any interest thereon and additions thereto, the "Replacement ReserveREPLACEMENT RESERVE"). The Replacement Reserve may be commingled with the general funds of Lender, and these sums shall not be deemed to be held in trust for the benefit of Borrower. So long as no default exists hereunder or under any of the other Loan Documents, Lender shall credit for Borrower's account interest in such funds contained in the Replacement Reserve shall be utilized (if any) at the money market account rate announced by Borrower solely for Capital Expenditures performed during a national banking association selected by Lender. On the term of the Loan in accordance with Capital Expenditure Budget Maturity Date (as amended from time to time and which shall have been approved annually in advance by Lender commencing -49- with the Capital Expenditure Budget for the calendar year 2011it may be extended), and shall not the monies then remaining on deposit with Lender shall, at Lender's option, be used by applied against the Indebtedness or if no Event of Default is continuing, returned to Borrower. So long as there is no Event of Default, Borrower for purposes for which any other Reserve is established. Within ten (10) days after written may request from Borrower, Lender shall direct the Central Account Bank to disburse funds from the Replacement Reserve (which request will include a reasonably detailed description of the capital expenditures at the Project, Borrower intends to pay for costs that have been incurred with such funds), which request shall not be unreasonably denied by Borrower for such Capital ExpendituresLender. If requested by Lender, provided that (i) no Event each disbursement request will be accompanied by copies of Default has occurred and is continuing, (ii) Borrower shall provide to Lender such documentation and certifications as Lender may reasonably request to substantiate the requirement for and entitlement to such disbursement, (iii) Borrower shall provide Lender with all invoices, receiptsinvoices or purchase orders, lien waivers and other documentation of lawful and workmanlike progress or completion, lien-free status, and availability of sufficient funds, all as may be evidence reasonably requested by Lender and Lender may require, at Borrower's expense, an inspection of the Property and/or a certificate of completion by a licensed independent architect approved required by Lender. 5.9.

Replacement Reserve. At Closing, Borrower shall deposit into a reserve with Lender (or its agentthe “Replacement Reserve”) $-0- and, pursuant to the Cash Management Agreement, Borrower shall deposit with Lender (or such agent) monthly, on the first day of Closing date the amount shown on Schedule 8.1 hereto, and thereafter, monthly on each calendar month commencing with February 1Payment Date, 2001, $17,738, the monthly amounts designated as monthly amounts on Schedule 8.1 hereto for the purpose of creating a reserve for Capital Expenditures purposes set forth in accordance with the Capital Expenditure Budget then in effect this Section (said funds, together with any interest thereon and additions thereto, the "“Replacement Reserve"Reserve Funds”). The funds Funds contained in the Replacement Reserve shall be utilized by Borrower solely for Capital Expenditures performed during the term of the Loan in accordance with the capital expenditures budget prepared by Borrower, and during a Cash Management Period, the Approved Capital Expenditure Budget (as amended from time to time and which shall have been approved annually in advance by Lender commencing -49- with the Capital Expenditure Budget for the calendar year 2011)Expenditures Budget, and shall not be used by Borrower for purposes for which any other Reserve is established. Within ten Lender from time to time may reasonably reassess its estimate of the amount necessary for the Replacement Reserve, in which case the monthly amount payable by Borrower to Lender for deposit into the Replacement Reserve shall change in accordance with such estimate on thirty (1030) days after days’ written request from notice to Borrower. Upon written application, Lender Borrower shall direct the Central Account Bank be entitled to disburse funds from draw upon the Replacement Reserve to pay for the costs that for which the Replacement Reserve has been established after such costs shall have been incurred by Borrower for such Capital Expendituresand invoiced, provided that (i) no Event of Default has occurred and is continuing, (ii) Borrower the Reserve Disbursement Conditions shall provide to Lender such documentation and certifications as Lender may reasonably request to substantiate the requirement for and entitlement to such disbursement, (iii) Borrower shall provide Lender with all invoices, receipts, lien waivers and other documentation of lawful and workmanlike progress or completion, lien-free status, and availability of sufficient funds, all as may be reasonably requested by Lender and Lender may require, at Borrower's expense, an inspection of the Property and/or a certificate of completion by a licensed independent architect approved by Lenderhave been satisfied.

Replacement Reserve. At Closingthe time of and in addition to the monthly -------------------- installments of interest and, if applicable, principal, due under the Notes, Borrower shall deposit with pay to Lender an amount equal to Twenty-Five and No/100 Dollars (or its agent$25.00) $-0- and, pursuant to per unit in the Cash Management Agreement, Borrower shall deposit with Lender Project (or such agent) monthly, on the first day of each calendar month commencing with February 1, 2001, $17,738, for the purpose of creating a reserve for Capital Expenditures in accordance with the Capital Expenditure Budget then in effect (said funds, together with any interest thereon and additions thereto, the "Replacement ReserveREPLACEMENT RESERVE"). The Replacement Reserve may be commingled with the general funds of Lender, and these sums shall not be deemed to be held in trust for the benefit of Borrower. So long as no default exists hereunder or under any of the other Loan Documents, Lender shall credit for Borrower's account interest in such funds contained in the Replacement Reserve shall be utilized (if any) at the money market account rate announced by Borrower solely for Capital Expenditures performed during a national banking association selected by Lender. On the term of the Loan in accordance with Capital Expenditure Budget Maturity Date (as amended from time to time and which shall have been approved annually in advance by Lender commencing -49- with the Capital Expenditure Budget for the calendar year 2011it may be extended), and shall not the monies then remaining on deposit with Lender shall, at Lender's option, be used by applied against the Indebtedness or if no Event of Default is continuing, returned to Borrower. So long as there is no Event of Default, Borrower for purposes for which any other Reserve is established. Within ten (10) days after written may request from Borrower, Lender shall direct the Central Account Bank to disburse funds from the Replacement Reserve (which request will include a reasonably detailed description of the capital expenditures at the Property, Borrower intends to pay for costs that have been incurred with such funds), which request shall not be unreasonably denied by Borrower for such Capital ExpendituresLender. If requested by Lender, provided that (i) no Event each disbursement request will be accompanied by copies of Default has occurred and is continuing, (ii) Borrower shall provide to Lender such documentation and certifications as Lender may reasonably request to substantiate the requirement for and entitlement to such disbursement, (iii) Borrower shall provide Lender with all invoices, receiptsinvoices or purchase orders, lien waivers and other documentation of lawful and workmanlike progress or completion, lien-free status, and availability of sufficient funds, all as may be evidence reasonably requested by Lender and Lender may require, at Borrower's expense, an inspection of the Property and/or a certificate of completion by a licensed independent architect approved required by Lender.

Replacement Reserve. At Closing, Borrower shall deposit with Lender (or its agent) $-0- and, pursuant Pursuant to the Cash Management Agreement, Borrower the Borrowers shall deposit with Lender (or such agent) monthly, on the first day of each calendar month commencing with February 1, 2001, $17,738, 53,854 for the purpose of creating a reserve for Capital Expenditures in accordance with the Capital Expenditure Budget then in effect (said funds, together with any interest thereon and additions thereto, the "Replacement Reserve"). The funds contained in the Replacement Reserve shall be utilized by Borrower the Borrowers solely for Capital Expenditures performed during the term of the Loan in accordance with the Capital Expenditure Budget (as amended from time to time and which shall have been approved annually in advance by Lender commencing -49- with the Capital Expenditure Budget time) for the calendar year 2011)each Property, and shall not be used by any Borrower for purposes for which any other Reserve is established. Within ten (10) days after written request from any Borrower, Lender shall direct the Central Account Bank to disburse funds from the Replacement Reserve to pay for costs that have been incurred by such Borrower for such Capital Expenditures, provided that (i) no Event of Default has occurred and is continuing, (ii) such Borrower shall provide to Lender such documentation and certifications as Lender may reasonably request to substantiate the requirement for and entitlement to such disbursement, (iii) such Borrower shall provide Lender with all invoices, receipts, lien waivers and other documentation of lawful and workmanlike progress or completion, lien-free status, and availability of sufficient funds, all as may be reasonably requested by Lender and Lender may require, at such Borrower's expense, an inspection of the subject Property and/or a certificate of completion by a licensed independent architect approved by Lender.

Replacement Reserve. At Closing, Borrower shall deposit with Lender (or its agent) $-0- the time of and in addition to the monthly -------------------- installments of interest and, pursuant if applicable, principal, due under the Notes, Borrowers shall pay to Lender an amount equal to Thirty and No/100 Dollars ($30.00) per unit in the Cash Management Agreement, Borrower shall deposit with Lender Projects (or such agent) monthly, on the first day of each calendar month commencing with February 1, 2001, $17,738, for the purpose of creating a reserve for Capital Expenditures in accordance with the Capital Expenditure Budget then in effect (said funds, together with any interest thereon and additions thereto, the "Replacement ReserveREPLACEMENT RESERVE"). The Replacement Reserve may be commingled with the general funds of Lender, and these sums shall not be deemed to be held in trust for the benefit of any Borrower. So long as no default exists hereunder or under any of the other Loan Documents, Lender shall credit for Borrowers' account interest in such funds contained in the Replacement Reserve shall be utilized (if any) at the money market account rate announced by Borrower solely for Capital Expenditures performed during a national banking association selected by Lender. On the term of the Loan in accordance with Capital Expenditure Budget Maturity Date (as amended from time to time and which shall have been approved annually in advance by Lender commencing -49- with the Capital Expenditure Budget for the calendar year 2011it may be extended), and shall not the monies then remaining on deposit with Lender shall, at Lender's option, be used by Borrower for purposes for which any other Reserve applied against the Indebtedness or if no Event of Default is establishedcontinuing, returned to Borrowers. Within ten (10) days after written So long as there is no Event of Default, Borrowers may request from Borrower, Lender shall direct the Central Account Bank to disburse funds from the Replacement Reserve (which request will include a reasonably detailed description of the capital expenditures at a Project which a Borrower intends to pay for costs that have been incurred with such funds), which request shall not be unreasonably denied by Borrower for such Capital ExpendituresLender. If requested by Lender, provided that (i) no Event each disbursement request will be accompanied by copies of Default has occurred and is continuing, (ii) Borrower shall provide to Lender such documentation and certifications as Lender may reasonably request to substantiate the requirement for and entitlement to such disbursement, (iii) Borrower shall provide Lender with all invoices, receiptsinvoices or purchase orders, lien waivers and other documentation of lawful and workmanlike progress or completion, lien-free status, and availability of sufficient funds, all as may be evidence reasonably requested by Lender and Lender may require, at Borrower's expense, an inspection of the Property and/or a certificate of completion by a licensed independent architect approved required by Lender. 5.9.