TO LENDER THAT TENANCIES OR OTHER
SOURCES OF REVENUE FROM THE MORTGAGED PROPERTY WILL CONTINUE IN FULL FORCE AND
EFFECT AFTER RESTORATION SUBJECT ONLY TO RENT ABATEMENT DURING THE PERIOD WHEN
ANY LEASED PREMISES ARE UNTENANTABLE, THEN, IF AND SO LONG AS THERE IS NO EVENT
OF DEFAULT, LENDER WILL MAKE AVAILABLE TO BORROWER FOR SUCH RESTORATION,
PROCEEDS OF CONDEMNATION, IF ANY, COLLECTED BY LENDER BECAUSE OF THE ACT OR
OCCURRENCE AND NOT RESTRICTED BY ANY ADVERSE CLAIM THERETO.
IF LENDER HOLDS ALL
SUCH FUNDS IN AN ACCOUNT FOR SUCH PURPOSES, THEY SHALL BE HELD IN A MONEY MARKET
ACCOUNT FROM WHICH LENDER SHALL APPROVE DRAW REQUESTS.
6.5
RESERVE FOR IMPOSITIONS AND INSURANCE
PREMIUMS.
UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF
DEFAULT, BORROWER SHALL CREATE A FUND OR RESERVE (THE "IMPOSITIONS RESERVE") FOR
THE PAYMENT OF ALL INSURANCE PREMIUMS AND IMPOSITIONS AGAINST OR AFFECTING THE
MORTGAGED PROPERTY BY PAYING TO LENDER, ON THE FIRST DAY OF EACH CALENDAR MONTH
PRIOR TO THE MATURITY OF THE NOTE, AS MAY BE EXTENDED, A SUM EQUAL TO THE
PREMIUMS THAT WILL NEXT BECOME DUE AND PAYABLE ON THE INSURANCE POLICIES
COVERING BORROWER, THE MORTGAGED PROPERTY OR ANY PART THEREOF OR SUCH OTHER
INSURANCE POLICIES REQUIRED HEREBY OR BY THE LOAN DOCUMENTS, PLUS IMPOSITIONS
NEXT DUE ON THE MORTGAGED PROPERTY OR ANY PART THEREOF AS ESTIMATED BY LENDER,
LESS ALL SUMS PAID PREVIOUSLY TO LENDER THEREFOR, DIVIDED BY THE NUMBER OF
MONTHS TO ELAPSE BEFORE ONE MONTH PRIOR TO THE DATE WHEN EACH OF SUCH PREMIUMS
AND IMPOSITIONS WILL BECOME DELINQUENT.
SUCH SUMS DEPOSITED AND HELD IN AN
IMPOSITIONS RESERVE ACCOUNT WITH THE LENDER SHALL ACCRUE INTEREST AT LENDER'S
MONEY MARKET RATE FOR THE PURPOSES OF PAYING SUCH PREMIUMS AND IMPOSITIONS.
NOTWITHSTANDING THE FOREGOING, EXCLUDED FROM SUCH PAYMENT TO LENDER SHALL BE THE
THEN-CURRENT CHARGES FOR WATER, GAS, SEWER, ELECTRICITY, AND OTHER UTILITIES.
ANY EXCESS RESERVE SHALL, AT THE DISCRETION OF LENDER UPON NOTICE TO BORROWER,
BE CREDITED BY LENDER ON SUBSEQUENT RESERVE PAYMENTS OR SUBSEQUENT PAYMENTS TO
BE MADE ON THE NOTE BY THE MAKER THEREOF, AND ANY DEFICIENCY SHALL BE PAID BY
BORROWER TO LENDER ON OR BEFORE THREE (3) BUSINESS DAYS FROM THE DATE WHEN
LENDER DEMANDS SUCH PAYMENT TO BE MADE, BUT IN NO EVENT AFTER THE DATE WHEN SUCH
PREMIUMS AND IMPOSITIONS SHALL BECOME DELINQUENT.
IN THE EVENT THERE EXISTS A
DEFICIENCY IN SUCH FUND OR RESERVE AT ANY TIME WHEN IMPOSITIONS OR INSURANCE
PREMIUMS ARE DUE AND PAYABLE, LENDER MAY, BUT SHALL NOT BE OBLIGATED TO, ADVANCE
THE AMOUNT OF SUCH DEFICIENCY ON BEHALF OF BORROWER AND SUCH AMOUNTS SO ADVANCED
SHALL BECOME A PART OF THE INDEBTEDNESS, SHALL BE IMMEDIATELY DUE AND PAYABLE,
AND SHALL BEAR INTEREST AT THE DEFAULT RATE FROM THE DATE OF SUCH ADVANCE
THROUGH AND INCLUDING THE DATE OF REPAYMENT.
UNLESS OTHERWISE AGREED AT THE
TIME OF SUCH TRANSFER, TRANSFER OF LEGAL TITLE TO THE MORTGAGED PROPERTY SHALL
AUTOMATICALLY TRANSFER TO THE
30
HOLDER OF LEGAL TITLE TO