Common use of Tax Escrow Clause in Contracts

Tax Escrow. If directed by Bank in writing, Mortgagor shall, in order to secure the performance and discharge of Mortgagor’s obligations under this Section 1.4, but not in lieu of such obligations, deposit with Bank on the first day of each calendar month throughout the term of the Loan, deposits, in amounts set by Bank from time to time by written notice to Mortgagor, in order to accumulate funds sufficient to permit Bank to pay all annual ad valorem taxes, assessments and charges of the nature described in Section 1.4.1 at least thirty (30) days prior to the date or dates on which they shall become delinquent. The taxes, assessments and charges for purposes of this Section 1.4.3 shall, if Bank so elects, include, without limitation, water and sewer rents. Mortgagor shall procure and deliver to Bank when issued all statements or bills for such obligations. Upon demand by Bank, Mortgagor shall deliver to Bank such additional monies as are required to satisfy any deficiencies in the amounts necessary to enable Bank to pay such taxes, assessments and similar charges thirty (30) days prior to the date they become delinquent. Bank shall pay such taxes, assessments and other charges as they become due to the extent of the funds on deposit with Bank from time to time and provided Mortgagor has delivered to Bank the statements or bills therefor. In making any such payments, Bank shall be entitled to rely on any xxxx issued in respect of any such taxes, assessments or charges without inquiry into the validity, propriety or amount thereof and whether delivered to Bank by Mortgagor or otherwise obtained by Bank. Any deposits received pursuant to this Section 1.4.3 shall not be, nor be deemed to be, trust funds, but may be commingled with the general funds of Bank and Bank shall have no obligation to pay interest on amounts deposited with Bank pursuant to this Section 1.4.3. If any Event of Default occurs, any part or all of the amounts then on deposit or thereafter deposited with Bank under this Section 1.4.3 may at Bank’s option be applied to payment of Borrower’s Liabilities in such order as Bank may determine.

Tax Escrow. If directed by Bank Lender in writing, Mortgagor shall, in order to secure the performance and discharge of Mortgagor’s obligations under this Section 1.4, but not in lieu of such obligations, deposit with Bank Lender on the first day of each calendar month throughout the term of the Loan, deposits, in amounts set by Bank Lender from time to time by written notice to Mortgagor, in order to accumulate funds sufficient to permit Bank Lender to pay all annual ad valorem taxes, assessments and charges of the nature described in Section 1.4.1 at least thirty (30) days prior to the date or dates on which they shall become delinquent. Mortgagor hereby pledges to Lender, and grants to Lender a security interest in, any and all such deposits as security for the Loan. The taxes, assessments and charges for purposes of this Section 1.4.3 shall, if Bank Lender so elects, include, without limitation, water and sewer rents. Mortgagor shall procure and deliver to Bank Lender when issued all statements or bills for such obligations. Upon demand by BankLender, Mortgagor shall deliver to Bank Lender such additional monies as are required to satisfy any deficiencies in the amounts necessary to enable Bank Lender to pay such taxes, assessments and similar charges thirty (30) days prior to the date they become delinquent. Bank Lender shall pay such taxes, assessments and other charges as they become due to the extent of the funds on deposit with Bank Lender from time to time and provided Mortgagor has delivered to Bank Lender the statements or bills therefor. In making any such payments, Bank Lender shall be entitled to rely on any xxxx issued in respect of any such taxes, assessments or charges without inquiry into the validity, propriety or amount thereof and whether delivered to Bank Lender by Mortgagor or otherwise obtained by BankLender. Any deposits received pursuant to this Section 1.4.3 shall not be, nor be deemed to be, trust funds, but may be commingled with the general funds of Bank Lender and Bank Lender shall have no obligation to pay interest on amounts deposited with Bank Lender pursuant to this Section 1.4.3. If any Event of Default occurs, any part or all of the amounts then on deposit or thereafter deposited with Bank Lender under this Section 1.4.3 may at BankLender’s option be applied to payment of BorrowerMortgagor’s Liabilities in such order as Bank Lender may determine.

Tax Escrow. If directed by Bank in writing, Mortgagor shall, in In order to secure the performance and discharge of Mortgagor’s 's obligations under this Section 1.4paragraph 1.04, but not in lieu of such obligations, deposit with Bank on the first day of each calendar month throughout the term Mortgagor, upon Lender's request, will pay over to Lender an amount equal to one-twelfth (1/12th) of the Loan, deposits, in amounts set by Bank from time to time by written notice to Mortgagor, in order to accumulate funds sufficient to permit Bank to pay all next maturing annual ad valorem taxes, assessments and charges (which taxes, assessments and charges, for purposes of this paragraph, shall include without limitation water and sewer rents, and shall hereinafter be collectively called "Taxes") of the nature described in Section 1.4.1 at least thirty paragraph 1.04 for each month that has elapsed since the last date to which the Taxes were paid; and Mortgagor will, in addition, during the continuance of an Event of Default and upon Lender's request, pay over to Lender together with each installment of the Obligations sufficient funds (30as estimated from time to time by Lender in its sole discretion) days prior to permit Lender to pay when due the date or dates on which they shall become delinquentTaxes. The taxes, assessments During the continuance of an Event of Default and charges for purposes of this Section 1.4.3 shall, if Bank so elects, include, without limitation, water and sewer rents. Mortgagor shall procure and deliver to Bank when issued all statements or bills for such obligations. Upon demand by Bankupon Lender's request, Mortgagor shall also deliver to Bank Lender such additional monies as are required to satisfy make up any deficiencies in the amounts necessary to enable Bank Lender to pay such taxes, assessments and similar charges thirty (30) days prior to the date they become delinquentTaxes. Bank shall pay such taxes, assessments and other charges as they become due to the extent of the funds on deposit with Bank from time to time and provided Mortgagor has delivered to Bank the statements or bills therefor. In making any such payments, Bank shall be entitled to rely on any xxxx issued in respect of any such taxes, assessments or charges without inquiry into the validity, propriety or amount thereof and whether delivered to Bank by Mortgagor or otherwise obtained by Bank. Any Such deposits received pursuant to this Section 1.4.3 shall not be, nor be deemed to be, trust funds, funds but may be commingled with the general funds of Bank Lender, and Bank no interest shall have no obligation be payable in respect thereof. Lender may apply to pay interest on amounts deposited with Bank pursuant to this Section 1.4.3. If any Event the reduction of Default occursthe Obligations secured hereby (without prepayment penalty), in such manner as Lender shall determine, any part or all of the amounts then on deposit or thereafter deposited with Bank amount under this Section 1.4.3 may at Bank’s option be applied paragraph 1.04.4 remaining to payment of Borrower’s Liabilities in such order as Bank may determineMortgagor's credit.

Tax Escrow. If directed by Bank in writingIn addition to the Escrow Funds, Mortgagor shall, in order to secure the performance future payment of the taxes and discharge assessments payable in connection with the ownership, operation and management of Mortgagor’s obligations under this Section 1.4the Property, but not in lieu of such obligations, Borrower shall deposit with Bank Lender's servicer, ShoptawJamex, Xxx., or such other servicer as Lender may designate in writing to Borrower ("Shoptaw") on the first tenth (10th) day of each calendar and every month throughout together with and in addition to the term monthly payments required under the Note, a sum which, in the reasonable estimation of Lender, shall be equal to one-xxxxxxh (1/12) of said annual taxes and assessments related to the Property. Said deposit shall be held by Shoptaw free of any interest (unless required by law) and free of any liens or claims on the part of creditors of Borrower and as a part of the Loansecurity of Lender, deposits, in amounts set by Bank from time to time by written notice to Mortgagor, in order to accumulate funds sufficient to permit Bank and shall be used to pay all annual ad valorem taxes, current taxes and assessments on the Property as the same accrue and charges of the nature described in Section 1.4.1 at least thirty (30) days prior to the date or dates on which they shall become delinquentare payable. The taxes, assessments and charges for purposes of this Section 1.4.3 shall, if Bank so elects, include, without limitation, water and sewer rents. Mortgagor shall procure and deliver to Bank when issued all statements or bills for such obligations. Upon demand by Bank, Mortgagor shall deliver to Bank such additional monies as are required to satisfy any deficiencies in the amounts necessary to enable Bank to pay such taxes, assessments and similar charges thirty (30) days prior to the date they become delinquent. Bank shall pay such taxes, assessments and other charges as they become due to the extent of the funds on deposit with Bank from time to time and provided Mortgagor has delivered to Bank the statements or bills therefor. In making any such payments, Bank shall be entitled to rely on any xxxx issued in respect of any such taxes, assessments or charges without inquiry into the validity, propriety or amount thereof and whether delivered to Bank by Mortgagor or otherwise obtained by Bank. Any Such deposits received pursuant to this Section 1.4.3 shall not be, nor be deemed to be, trust funds, funds but may be commingled with the general funds of Bank and Bank shall have no obligation Shoptaw. If said deposits are insufficient to pay interest on amounts deposited the taxes and assessments in full as and when the same become payable, Borrower will deposit with Bank pursuant Shoptaw within ten (10) days after notice from Lender of said deficiency, such additional sum or sums as may be required in order for Lender to this Section 1.4.3pay such taxes and assessments in full. If Upon any Event of Default occursdefault under the Note or the Security Deed, which default extends beyond any part applicable grace or all cure period, Lender may, at its option, apply any money in the fund resulting from said deposit to the payment of the amounts then indebtedness under the Note in such manner as it may elect. The collection of such deposits by Lender shall not relieve Borrower of any of the obligations of Borrower under the provisions of the Security Deed; and under no circumstances shall Lender be liable for failure to make any payment on deposit or thereafter deposited behalf of Borrower, including, without limitation, payments of taxes and assessments. Simultaneously with Bank the execution of this Third Amendment, Borrower has delivered to Lendxx xxx xum of $-0- as a partial payment under this Section 1.4.3 may at Bank’s option 7. Said amount, together with Borrower's initial monthly escxxx xxxxents of $3,411.12 shall be applied used to payment pay such taxes and assessments when due. The escrow provisions relative to taxes and assessments set forth in this Section 7 shall be a separate escrow arrangement, and shall not be considered a part of Borrower’s Liabilities in such order as Bank may determinethe Escrow Funds held by Escrow Agent under the Escrow Agreement.