Tax Impound Clause Samples
A Tax Impound clause requires a borrower to make regular payments into an escrow account to cover property taxes and sometimes insurance premiums. The lender collects these funds along with the regular loan payments and uses them to pay the taxes and insurance when they come due, ensuring that these obligations are met on time. This clause helps prevent tax liens or lapses in insurance coverage, protecting both the lender’s security interest in the property and the borrower from potential penalties.
Tax Impound. Upon the occurrence of an Event of Default and with respect to each Event of Default, in addition to any other remedies, Lessor may require Lessee to pay to Lessor on the first day of each month the amount that Lessor reasonably estimates will be necessary in order to accumulate with Lessor sufficient funds in an impound account (which shall not be deemed a trust fund) (the “Reserve”) for Lessor to pay any and all real estate taxes (“Real Estate Taxes”) for the Properties for the ensuing twelve (12) months, or, if due sooner, Lessee shall pay the required amount immediately upon Lessor’s demand therefor. Lessor shall, upon prior written request of Lessee, provide Lessee with evidence reasonably satisfactory to Lessee that payment of the Real Estate Taxes was made in a timely fashion. In the event that the Reserve does not contain sufficient funds to timely pay any Real Estate Taxes, upon Lessor’s written notification thereof, Lessee shall, within five (5) Business Days of such notice, provide funds to Lessor in the amount of such deficiency. Lessor shall pay or cause to be paid directly to the applicable taxing authorities any Real Estate Taxes then due and payable for which there are funds in the Reserve; provided, however, that in no event shall Lessor be obligated to pay any Real Estate Taxes in excess of the funds held in the Reserve, and Lessee shall remain liable for any and all Real Estate Taxes, including fines, penalties, interest or additional costs imposed by any taxing authority (unless incurred as a result of Lessor’s failure to timely pay Real Estate Taxes for which it had funds in the Reserve). Lessee shall cooperate fully with Lessor in assuring that the Real Estate Taxes are timely paid. Lessor may deposit all Reserve funds in accounts insured by any federal or state agency and may commingle such funds with other funds and accounts of Lessor. Interest or other gains from such funds, if any, shall be the sole property of Lessor. Upon an Event of Default, in addition to any other remedies, Lessor may apply all impounded funds in the Reserve against any sums due from Lessee to Lessor. Lessor shall give to Lessee an annual accounting showing all credits and debits to and from such impounded funds received from Lessee.
Tax Impound. Borrower shall deposit with Lender the following amounts (collectively, “Tax Impound”): $0 on the Disbursement Date, and on each Due Date thereafter commencing with the First I/O Due Date, an amount estimated from time to time by Lender in its reasonable discretion to be sufficient to pay the real estate taxes and assessments payable by Borrower with respect to the Property (collectively, “Taxes”) at least thirty (30) days prior to each date on which Taxes become delinquent (“Delinquency Date”). The initial estimated monthly amount to be deposited by Borrower for Taxes on each Due Date is $0. If Lender reasonably determines at any time that the Tax Impound will not be sufficient to pay any Taxes at least thirty (30) days prior to the Delinquency Date, Lender shall notify Borrower of such determination in writing and Borrower shall deposit with Lender the amount of such deficiency not more than ten (10) days after Borrower’s receipt of such notice; provided, however, if Borrower receives notice of any such deficiency less than thirty (30) days prior to the Delinquency Date, Borrower shall deposit the amount of such deficiency with Lender not more than three (3) Business Days after Borrower’s receipt of such notice, but in no event later than the Business Day immediately preceding the Delinquency Date. So long as no Default exists, Lender shall apply the Tax Impound to the payment of the Taxes. Deposits into the Tax Impound shall be waived, provided no Default is continuing, with respect to any Taxes which Commerce is required to reimburse Borrower’s payment thereof pursuant to the terms of the Commerce Lease (Borrower hereby representing that Commerce is required to reimburse all Taxes paid by Borrower), provided (i) Borrower delivers, or causes to be delivered to Lender, evidence of the timely payment of such Taxes, (ii) Commerce has exercised all applicable renewal terms under its Lease within the time such renewals are required to be exercised and (iii) Commerce is not in material default of its obligations under its Lease beyond all applicable notice and cure periods.
Tax Impound. Upon the occurrence of an Event of Default and with respect to each Event of Default, in addition to any other remedies, Lessor may require Lessee
Tax Impound. 4 D. New Assessments ..................................4 E. Tenant's Right to Contest Real Property Taxes ...................................4 F. Substitute or Additional Taxes ...................5
Tax Impound. Upon the occurrence of a Trigger Event and on each Due Date thereafter until the Trigger Event is cured in a writing executed by Lender, Borrower shall deposit into the Tax Impound Account (collectively, "Tax Impound") an amount estimated from time to time by Lender, in its sole discretion, to be sufficient to pay the taxes, assessments and other liabilities payable by Borrower with respect to the Property and Improvements under the Loan Documents (collectively, "Taxes") at least forty-five (45) days prior to each date on which Taxes become delinquent ("Delinquency Date"). So long as no Default exists, Lender shall, upon the request of Borrower, disburse to Borrower the Tax Impound funds for the payment of the Taxes which amount shall not exceed the amount due as of the Delinquency Date. Until such time as the Note is paid in full, Borrower shall deliver to Lender, as soon as available, a photocopy of all tax statements received by Borrower from and after the date of this Agreement from the tax authority with respect to the Property and Improvements.
Tax Impound. Buyer and Seller have been informed by the current holder (the "Holder") of the Loan that, as of November 5, 1999, the balance of the tax impound account (the "Impound Account") being held pursuant to the Loan was $796,245.
Tax Impound. 12, 9 Taxes..................................12, 9 Tenant.....................................9 Term...................................5, 10 Term Sheet................................10
Tax Impound. If Landlord's lender required Landlord to impound real property taxes on a periodic basis during the term, Tenant, on notice from Landlord, shall pay its Proportionate Share of the real property taxes to Landlord on a periodic basis in accordance with the lender's requirements. Landlord shall impound the tax payments received from Tenant in accordance with the requirements of the lender.
Tax Impound. 20 Taxes.............................................. 20