Common use of Tax Deposits Clause in Contracts

Tax Deposits. 7.1 Lessee shall be required to make deposits for annual Taxes and Assessments and, will make monthly deposits with Lessor, of an amount equal to one twelfth (1/12) of the annual Taxes and Assessments or such greater amount as may be required by any Mortgagee. Said deposits shall be due and payable on the first day of each month as additional Rent, shall not bear interest and shall be held by Lessor and/or a mortgagee of the Lessor to pay the real estate taxes as they become due and payable. If the total of the monthly payments as made under this Article shall be insufficient to pay the Taxes and Assessments when due, then Lessee shall on demand pay Lessor the amount necessary to make up the deficiency, and if appropriate, Lessee shall receive a credit against the next monthly tax escrow payment coming due in an amount equal to said deficiency payment.