LIENS NOT PREVIOUSLY APPROVED BY LENDER.
3.3
TAX AND INSURANCE SUBACCOUNT.
BORROWER SHALL PAY TO LENDER ON EACH
PAYMENT DATE (I) ONE-TWELFTH OF THE TAXES THAT LENDER ESTIMATES WILL BE PAYABLE
DURING THE NEXT 12 MONTHS IN ORDER TO ACCUMULATE WITH LENDER SUFFICIENT FUNDS TO
PAY ALL SUCH TAXES AT LEAST THIRTY (30) DAYS PRIOR TO THE DELINQUENCY DATE AND
(II) AT THE OPTION OF LENDER, IF THE LIABILITY OR CASUALTY POLICY MAINTAINED BY
BORROWER COVERING THE PROPERTY SHALL NOT CONSTITUTE AN APPROVED BLANKET OR
UMBRELLA POLICY PURSUANT TO SECTION 7.1 HEREOF, ONE-TWELFTH OF THE INSURANCE
PREMIUMS THAT LENDER ESTIMATES WILL BE PAYABLE FOR THE RENEWAL OF THE COVERAGE
AFFORDED BY THE POLICIES UPON THE EXPIRATION THEREOF IN ORDER TO ACCUMULATE WITH
LENDER SUFFICIENT FUNDS TO PAY ALL SUCH INSURANCE PREMIUMS AT LEAST 30 DAYS
PRIOR TO THE EXPIRATION OF THE POLICIES.
SUCH AMOUNTS WILL BE TRANSFERRED BY
LENDER TO A SUBACCOUNT (THE "TAX AND INSURANCE SUBACCOUNT").
IN THE EVENT
LENDER SHALL ELECT TO COLLECT PAYMENTS IN ESCROW FOR INSURANCE PREMIUMS PURSUANT
TO CLAUSE (II) ABOVE, BORROWER SHALL PAY TO LENDER AN INITIAL DEPOSIT TO BE
REASONABLY DETERMINED BY LENDER, IN ITS SOLE DISCRETION, TO INCREASE THE AMOUNTS
IN THE TAX AND INSURANCE SUBACCOUNT TO AN AMOUNT WHICH, TOGETHER WITH
ANTICIPATED MONTHLY DEPOSITS FOR INSURANCE PREMIUMS, SHALL BE SUFFICIENT TO PAY
ALL INSURANCE PREMIUMS AS THEY BECOME DUE.
PROVIDED THAT NO MONETARY EVENT OF
DEFAULT OR MATERIAL NON-MONETARY EVENT OF DEFAULT HAS OCCURRED AND IS
CONTINUING, LENDER WILL (A) APPLY FUNDS IN THE TAX AND INSURANCE SUBACCOUNT TO
PAYMENTS OF TAXES AND INSURANCE PREMIUMS REQUIRED TO BE MADE BY BORROWER
PURSUANT TO SECTIONS 5.2 AND 7.1, PROVIDED THAT BORROWER HAS PROMPTLY SUPPLIED
LENDER WITH NOTICES OF ALL TAXES AND INSURANCE PREMIUMS DUE, OR (B) REIMBURSE
BORROWER FOR SUCH AMOUNTS UPON PRESENTATION OF EVIDENCE OF PAYMENT; SUBJECT,
HOWEVER, TO BORROWER'S' RIGHT TO CONTEST TAXES IN ACCORDANCE WITH SECTION 5.2.
IN MAKING ANY
33
PAYMENT RELATING TO TAXES AND INSURANCE PREMIUMS, LENDER MAY DO SO ACCORDING TO
ANY BILL, STATEMENT OR ESTIMATE PROCURED FROM THE APPROPRIATE PUBLIC OFFICE
(WITH RESPECT TO TAXES) OR INSURER OR AGENT (WITH RESPECT TO INSURANCE
PREMIUMS), WITHOUT INQUIRY INTO THE ACCURACY OF SUCH BILL, STATEMENT OR ESTIMATE
OR INTO THE VALIDITY OF ANY TAX, ASSESSMENT, SALE, FORFEITURE, TAX LIEN OR TITLE
OR CLAIM THEREOF.
IF LENDER DETERMINES IN ITS REASONABLE JUDGMENT THAT THE
FUNDS IN THE TAX AND INSURANCE SUBACCOUNT WILL BE INSUFFICIENT TO PAY (OR IN
EXCESS OF) THE TAXES OR INSURANCE PREMIUMS NEXT COMING DUE, LENDER MAY INCREASE
(OR DECREASE) THE MONTHLY CONTRIBUTION REQUIRED TO BE MADE BY BORROWER TO THE
TAX AND INSURANCE SUBACCOUNT.
3.4
INTENTIONALLY OMITTED.
3.5
MEZZANINE LOAN SUBACCOUNT.
LENDER SHALL DEPOSIT THE MONTHLY
MEZZANINE DEBT SERVICE PAYMENT AMOUNT AND ALL OTHER AMOUNTS DUE UNDER THE
MEZZANINE LOAN, AS DIRECTED BY MEZZANINE LENDER PURSUANT TO WRITTEN INSTRUCTIONS
GIVEN BY MEZZANINE LENDER TO LENDER, INTO A SUBACCOUNT (THE "MEZZANINE LOAN
SUBACCOUNT") IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3.10 HEREOF.
LENDER
SHALL