Common use of Reserve Deposit Clause in Contracts

Reserve Deposit. On the Commencement Date Tenant shall deposit with Landlord, in cash or in the form of a letter of credit acceptable to Landlord in its reasonable discretion, the sum of One Million Three Hundred Three Thousand Seven Hundred Eighty-Three and 78/100 Dollars ($1,303,783.78), as a reserve deposit (the "Reserve Deposit"), in order to secure Tenant's faithful performance of all of Tenant's obligations under this Lease. If Tenant fails to pay Rent or Additional Charges due hereunder, fails to pay the full Option Purchase Price under the conditions and as provided in Section 24.2 below, or otherwise defaults with respect to any provision of this Lease , then in addition to and not exclusive of any other remedies available under this Lease, Landlord may use, apply or retain all or any portion of the Reserve Deposit for the payment of any Rent, the funding of any charges in default or other amount due to landlord hereunder, or for the payment of any sum to which Landlord may become obligated by reason of Tenant's default. If Landlord so uses or applies all or any portion of the Reserve Deposit, Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to fully restore the Reserve Deposit to the required amount as set forth above. Landlord shall maintain the Reserve Deposit in an interest-bearing account, and all interest accruing thereon shall be added to the Reserve Deposit. Landlord shall not be required to keep the Reserve Deposit separate from its general accounts, but shall maintain reasonable records showing the current balance of the Reserve Deposit and the amounts of interest earned thereon each year. If Tenant performs all of Tenant's obligations hereunder, at the expiration of the Term, after Tenant has vacated the Leased Property, and after all purchase options or mortgages encumbering the Leased Property which have been granted or which arise by, through or under Tenant have expired or been satisfied or released, the Reserve Deposit, or so much thereof as has not been applied or used by Landlord as provided herein, shall be returned to Tenant, together with any interest which has accrued thereon.. No trust relationship is created herein between Landlord and Tenant with respect to the Reserve Deposit. The Reserve Deposit shall be paid by Tenant to Landlord upon the Commencement Date.

Reserve Deposit. On (NON-ADMITTED REINSURER): ----------------------------------------- With respect to the Commencement Date Tenant shall deposit with Landlord, premium derived from any jurisdiction in cash or which an insured risk is located and in which the form of a letter of credit acceptable to Landlord in its reasonable discretionReinsurer is not admitted, the sum Company shall be entitled to require from the Reinsurer any one or a combination of One Million Three Hundred Three Thousand Seven Hundred Eighty-Three and 78/100 Dollars the following; ($1,303,783.781) a Letter of Credit complying with 11 NYCRR 79 (Regulation 133), (2) A Security Trust complying with 11 NYCRR 126 (Regulation 114) and/or (3) Cash as a reserve deposit (the "Reserve Deposit"), in order to secure Tenant's faithful performance of all of Tenant's obligations under this Lease. If Tenant fails to pay Rent or Additional Charges due hereunder, fails to pay the full Option Purchase Price under the conditions and as provided in Section 24.2 below, or otherwise defaults with respect to any provision of this Lease , then in addition to and not exclusive of any other remedies available under this Lease, Landlord may use, apply or retain all or any portion of the Reserve Deposit security for the payment of any Rentthe latter's Obligations hereunder. The amount required shall initially equal the amount shown in the Schedule(s). The amount shall be adjusted to equal the Reinsurer's Obligations. Upon default by the Reinsurer of sums due and owing to the Company, the funding Company may appropriate as much of any charges in default or other amount due the Letter of Credit, Security Trust and/or Cash as necessary to landlord hereundereliminate the default. The Company may, or for the however, at its discretion, require payment of any sum in default, and it shall be no defense to which Landlord any such claim that the Company might have had recourse to the Letter of Credit, Security Trust and/or Cash. The Company and the Reinsurer hereby agree that the Letter of Credit, Security Trust and/or Cash, provided pursuant to this Agreement may become obligated be drawn upon at any time, notwithstanding any other provisions herein contained. The Letter of Credit, Security Trust and/or Cash may be utilized by reason of Tenant's default. If Landlord so uses or applies all Company or any portion successor by operation of law, including, without limitation, any liquidator, rehabilitator, receiver or conservator of the Reserve Deposit, Tenant shall, within five Company for any of the following reasons: (5i) days after written demand therefor, deposit cash To reimburse the Company for the Reinsurer's share of premiums returned to the owners of the Policy(ies) reinsured hereunder due to cancellations of said Policy(ies); (ii) To reimburse the Company for the Reinsurer's share of surrenders and benefits or losses paid by the Company under the terms and provisions of the Policy(ies) reinsured hereunder; (iii) To fund an account with Landlord the Company in an amount sufficient to fully restore the Reserve Deposit at least equal to the required deduction, for reinsurance ceded, from the Company's liabilities for Policy(ies) ceded hereunder. Such amount as set forth above. Landlord shall maintain the Reserve Deposit in an interest-bearing accountinclude, but not be limited to, amounts for policy reserves, reserves for claims and all interest accruing thereon shall be added losses incurred (including IBNR, Allocated Loss Expenses and Unearned Premiums); and (iv) To pay any other amounts due to the Reserve DepositCompany under this Agreement. Landlord shall not be required to keep the Reserve Deposit separate from its general accounts, but shall maintain reasonable records showing the current balance All of the Reserve Deposit and the amounts of interest earned thereon each year. If Tenant performs all of Tenant's obligations hereunder, at the expiration foregoing apply without diminution because of the Term, after Tenant has vacated insolvency of the Leased Property, and after all purchase options Company or mortgages encumbering the Leased Property which have been granted or which arise by, through or under Tenant have expired or been satisfied or released, the Reserve Deposit, or so much thereof as has not been applied or used by Landlord as provided herein, shall be returned to Tenant, together with any interest which has accrued thereon.. No trust relationship is created herein between Landlord and Tenant with respect to the Reserve DepositReinsurer. The Reserve Deposit shall be paid by Tenant to Landlord upon the Commencement Date.ARTICLE Xl