NOT MORE
FREQUENTLY THAN ONCE IN ANY THIRTY (30) DAY PERIOD AND IN A MINIMUM AMOUNT OF NO
LESS THAN FIVE THOUSAND DOLLARS ($5,000.00) PER DISBURSEMENT (OR A LESSER AMOUNT
IF THE TOTAL AMOUNT IN THE GENERAL RESERVE ACCOUNT IS LESS THAN FIVE THOUSAND
DOLLARS ($5,000), IN WHICH CASE ONLY ONE DISBURSEMENT OF THE AMOUNT REMAINING IN
THE ACCOUNT SHALL BE MADE).
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7.6.3
RELEASE OF GENERAL RESERVE FUND.
IN THE EVENT THAT,
AS OF ANY FINANCIAL DETERMINATION DATE, THE EXCESS CASH TERMINATION CONDITIONS
SHALL HAVE BEEN SATISFIED, THE BALANCE OF THE GENERAL RESERVE FUND SHALL BE
RELEASED TO BORROWERS AND BORROWERS SHALL HAVE NO FURTHER OBLIGATION TO DEPOSIT
WITH LENDER ANY GENERAL RESERVE AMOUNT FOR THE REMAINING TERM OF THE LOAN, AS
THE SAME MAY BE EXTENDED IN ACCORDANCE WITH SECTION 2.7 HEREOF.
Section 7.7
Construction Loan Reserve Fund.
7.7.1
DEPOSIT TO CONSTRUCTION LOAN RESERVE FUND.
PURSUANT
TO SECTION 3.1(D) HEREOF, THE UNFUNDED PORTION OF THE CONSTRUCTION LOAN AS OF
THE SECOND ANNIVERSARY MAY BE ADVANCED AND DEPOSITED WITH LENDER IN AN ACCOUNT
WHICH SHALL BE REFERRED TO HEREIN AS THE "CONSTRUCTION LOAN RESERVE ACCOUNT."
7.7.2
WITHDRAWALS FROM CONSTRUCTION LOAN RESERVE ACCOUNT.
THE FUNDS IN THE CONSTRUCTION LOAN RESERVE ACCOUNT SHALL BE ADVANCED AS
CONSTRUCTION LOAN ADVANCES SUBJECT TO, AND IN ACCORDANCE WITH, THE PROVISIONS OF
ARTICLE III HEREOF.
Section 7.8
Reserve Funds, Generally.
(A)
BORROWERS HEREBY GRANT TO LENDER A
FIRST-PRIORITY PERFECTED SECURITY INTEREST IN EACH OF THE RESERVE FUNDS HELD BY
LENDER AND ANY AND ALL MONIES NOW OR HEREAFTER DEPOSITED IN EACH RESERVE FUND AS
ADDITIONAL SECURITY FOR PAYMENT OF THE DEBT.
UNTIL EXPENDED OR APPLIED IN
ACCORDANCE HEREWITH, THE RESERVE FUNDS SHALL CONSTITUTE ADDITIONAL SECURITY FOR
THE DEBT.
UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF
DEFAULT, LENDER MAY, IN ADDITION TO ANY AND ALL OTHER RIGHTS AND REMEDIES
AVAILABLE TO LENDER, APPLY ANY SUMS THEN PRESENT IN ANY OR ALL OF THE RESERVE
FUNDS TO THE REDUCTION OF THE DEBT (IN SUCH ORDER, PROPORTION AND PRIORITY AS
LENDER MAY DETERMINE IN ITS SOLE DISCRETION), UNTIL THE DEBT IS PAID IN FULL,
WITH ANY AMOUNTS REMAINING BEING DISBURSED TO BORROWERS.
THE RESERVE FUNDS
SHALL NOT CONSTITUTE TRUST FUNDS AND MAY BE COMMINGLED WITH OTHER MONIES HELD BY
LENDER.
(B)
BORROWERS SHALL NOT, WITHOUT OBTAINING THE
PRIOR CONSENT OF LENDER, FURTHER PLEDGE, ASSIGN OR GRANT ANY SECURITY INTEREST
IN ANY RESERVE FUND OR THE MONIES DEPOSITED THEREIN OR PERMIT ANY LIEN OR
ENCUMBRANCE TO ATTACH THERETO, OR ANY LEVY TO BE MADE THEREON, OR ANY UCC-1
FINANCING STATEMENTS, EXCEPT THOSE NAMING LENDER AS THE SECURED PARTY, TO BE
FILED WITH RESPECT THERETO.
(C)
THE RESERVE FUNDS SHALL BE HELD IN AN
ELIGIBLE ACCOUNT IN PERMITTED INVESTMENTS PURSUANT TO THE CASH MANAGEMENT
AGREEMENT.
ALL INTEREST OR OTHER EARNINGS ON A RESERVE FUND (WITH THE EXCEPTION
OF THE TAX AND INSURANCE ESCROW FUND) SHALL BE ADDED TO AND BECOME A PART OF
SUCH RESERVE FUND AND SHALL BE DISBURSED IN THE SAME MANNER AS