RECEIVED THEREFROM, NET OF ANY EXPENSES INCURRED BY PURCHASER IN CONNECTION
THEREWITH, SHALL BE PRORATED BETWEEN THE PARTIES ON THE BASIS OF THE PORTIONS
ACCRUING TO PERIODS BEFORE AND AFTER THE CLOSING.
(C)
PAYMENT OF ROLLBACK TAXES THAT ARE THE RESULT OF THE CHANGE OF
PURCHASER'S USE OF THE PROPERTY AFTER CLOSING THAT RESULT IN THE ASSESSMENT OF
ADDITIONAL TAXES, PENALTIES OR INTEREST (ASSESSMENT) FOR PERIODS BEFORE CLOSING
SHALL BE THE RESPONSIBILITY OF PURCHASER
7.1.4
SECURITY AND OTHER DEPOSITS.
AT THE CLOSING, SELLER SHALL DELIVER
TO PURCHASER ALL UNAPPLIED REFUNDABLE SECURITY AND PET DEPOSITS (PLUS INTEREST
ACCRUED THEREON TO THE EXTENT REQUIRED TO BE PAID BY THE APPLICABLE LEASES OR
APPLICABLE LAWS) REQUIRED TO BE HELD BY SELLER UNDER THE LEASES AND PURCHASER
SHALL PAY SELLER AN AMOUNT EQUAL TO ALL UTILITY AND CONTRACT DEPOSITS THEN HELD
BY THIRD PARTIES WITH RESPECT TO THE PROPERTY AND TRANSFERRED TO PURCHASER
HEREUNDER.
12
7.1.5
ADJUSTMENTS.
(A)
WITH RESPECT TO DELINQUENT RENTALS AND ANY OTHER RENTALS NOT
COLLECTED AS OF THE CLOSING (AND THUS NOT PRORATED AS OF CLOSING), PURCHASER
SHALL MAKE A COMMERCIALLY REASONABLE AND CUSTOMARY ATTEMPT TO COLLECT THE SAME
FOR SELLER'S BENEFIT AFTER THE CLOSING AND SUCH COLLECTION, IF ANY, SHALL BE
REMITTED TO SELLER PROMPTLY UPON RECEIPT BY PURCHASER. NOTHING CONTAINED HEREIN
SHALL OPERATE TO REQUIRE PURCHASER TO INSTITUTE ANY LAWSUIT OR OTHER LEGAL
COLLECTION PROCEDURE TO COLLECT SUCH DELINQUENT RENTALS. PURCHASER AND SELLER
AGREE THAT ANY SUMS RECEIVED BY PURCHASER FROM ANY TENANTS AFTER CLOSING SHALL
BE APPLIED (I) FIRST TO RENTALS DUE FOR THE MONTH DURING WHICH THE CLOSING
OCCURS (AND SAID RENTALS SHALL BE ALLOCATED BETWEEN SELLER AND PURCHASER AS IF
SAME HAD BEEN PRORATED AT CLOSING, WITH THE AMOUNT DUE SELLER TO BE PAID TO
SELLER PROMPTLY UPON RECEIPT BY PURCHASER), (II) SECOND, TO CURRENT RENTALS DUE
AFTER THE MONTH IN WHICH THE CLOSING OCCURS, (III) THIRD, TO DELINQUENT RENTALS
OWED WITH RESPECT TO THE PERIOD AFTER THE MONTH IN WHICH THE CLOSING OCCURS, AND
(IV) FOURTH, TO DELINQUENT RENTALS OWED WITH RESPECT TO THE PERIOD PRIOR TO
CLOSING, REGARDLESS OF THE DESIGNATION OF SUCH SUMS BY THE TENANT. IN ADDITION
TO PURCHASER'S AGREEMENT SET FORTH ABOVE TO PURSUE DELINQUENT RENTS FOR THE
BENEFIT OF SELLER, SELLER SHALL HAVE THE RIGHT TO PURSUE COLLECTION OF
DELINQUENT RENTS, BUT SELLER AGREES THAT IT WILL INITIATE NO SUIT OR LEGAL
PROCEEDING TO COLLECT DELINQUENT RENTS FROM A TENANT SO LONG AS THEY REMAIN A
TENANT OF THE PROPERTY.
(B)
PURCHASER SHALL NOT RECEIVE A CREDIT AT THE CLOSING FOR ITS
PRORATED PORTION OF ANY BONUS OR OTHER UP FRONT PAYMENT PREVIOUSLY MADE AND
RECEIVED BY SELLER UNDER OR IN CONNECTION WITH ANY SERVICE CONTRACT, INCLUDING,
WITHOUT LIMITATION, LAUNDRY ROOM LEASES, SECURITY SYSTEM, INTERNET, SATELLITE
AND CABLE TV LEASES OR CONTRACTS ENTERED INTO PRIOR TO CLOSING.
7.1.6
INSURANCE.
SELLER'S EXISTING LIABILITY AND PROPERTY INSURANCE
PERTAINING TO THE PROPERTY SHALL BE CANCELED AS OF THE CLOSING, AND SELLER SHALL
RECEIVE ANY PREMIUM REFUND DUE THEREON.
7.1.7
SURVIVAL.
THE