TIME TO TIME
TRANSFERRED OR CREDITED TO, CONTAINED IN OR COMPRISING THE OPERATING ACCOUNT AND
THE PROJECT ACCOUNT; (III) ALL STATEMENTS, CERTIFICATES, PASSBOOKS AND
INSTRUMENTS REPRESENTING THE PROJECT ACCOUNT AND THE OPERATING ACCOUNT OR ANY
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of the foregoing; (iv) any and all substitutions or additions of or with respect
to any of the foregoing; and (v) any and all proceeds and products of any of the
foregoing, whether now owned and existing or hereafter acquired or arising,
including, without limitation (A) interest, principal, dividends and other
amounts or distributions received with respect to any of the foregoing and (B)
property received upon the sale, exchange or other disposition of any of the
foregoing.
All amounts held in the Accounts shall be held by Lender to be
irrevocably applied for the purposes for which made as herein provided, and
shall not be subject to the direction or control of Borrower.
(D)
NO OTHER ACCOUNTS.
BORROWER COVENANTS AND
AGREES THAT, EXCEPT FOR THE OPERATING ACCOUNT, THE PROJECT ACCOUNT AND ANY OTHER
ACCOUNT MAINTAINED WITH LENDER PURSUANT TO THE TERMS HEREOF, IT WILL NOT
MAINTAIN OR PERMIT ANY PROPERTY MANAGER TO MAINTAIN ANY BANK OR DEPOSIT ACCOUNTS
(OF ANY KIND OR NATURE) WITH RESPECT TO THE PROPERTY.
NOTWITHSTANDING HE
FOREGOING, THE MANAGER SHALL BE ALLOWED TO MAINTAIN AN INDEPENDENT OPERATING
ACCOUNT.
(E)
DEFAULT.
UPON THE OCCURRENCE OF A DEFAULT
OR EVENT OF DEFAULT HEREUNDER, AND IN ADDITION TO ALL OTHER RIGHTS, POWERS AND
REMEDIES OF LENDER UNDER THIS AGREEMENT OR UNDER ANY OTHER LOAN DOCUMENT, LENDER
MAY, AT ITS OPTION, WITHOUT BEING REQUIRED TO DO SO AND TO THE EXTENT PERMITTED
BY LAW, APPLY ANY AMOUNTS IN THE ACCOUNTS ON HAND TO ANY OF THE SECURED
OBLIGATIONS, IN SUCH ORDER AND MANNER AS LENDER MAY ELECT IN ITS DISCRETION.
WHEN THE SECURED OBLIGATIONS HAVE BEEN FULLY PAID AND PERFORMED, AS THE CASE MAY
BE, AMOUNTS HELD IN THE ACCOUNTS SHALL BE PAID TO BORROWER.
SECTION 6.5
DEPOSITS FOR
REAL ESTATE TAXES.
(A)
ALL REAL ESTATE TAXES SHALL BE PAID FROM
ADVANCES FROM THE REAL ESTATE TAXES LINE ITEM IN THE PROJECT BUDGET, PROVIDED
SUCH LINE ITEM HAS NOT BEEN EXHAUSTED.
AFTER THE REAL ESTATE TAXES LINE ITEM IN
THE PROJECT BUDGET HAS BEEN DEPLETED, BORROWER SHALL THEREAFTER ON THE FIRST
(1ST) DAY OF EACH AND EVERY MONTH DURING THE TERM OF THE LOAN DEPOSIT AN AMOUNT
EQUAL TO ONE-TWELFTH (1/12) OF 100% OF THE ANNUAL REAL ESTATE TAXES NEXT TO
BECOME DUE UPON THE PROPERTY TO BE HELD IN THE PROJECT ACCOUNT FOR THE PAYMENT
OF REAL ESTATE TAXES WHEN DUE; PROVIDED THAT IN THE CASE OF THE FIRST SUCH
DEPOSIT THERE SHALL BE DEPOSITED, IN ADDITION, AN AMOUNT WHICH, WHEN ADDED TO
THE AGGREGATE AMOUNT OF MONTHLY SUMS NEXT PAYABLE UNDER THIS SECTION 6.5, WILL
RESULT IN A SUFFICIENT RESERVE TO PAY THE REAL ESTATE TAXES NEXT BECOMING DUE
ONE MONTH PRIOR TO THE DATE WHEN SUCH REAL ESTATE TAXES ARE, IN FACT, DUE AND
PAYABLE PURSUANT TO APPLICABLE LAW.