TO PROVIDE LENDER WITH A SEARCH OF TITLE TO
THE APPLICABLE PROPERTY EFFECTIVE TO THE DATE OF THE DISBURSEMENT, WHICH SEARCH
SHOWS THAT NO MECHANIC'S OR MATERIALMEN'S OR OTHER LIENS OF ANY NATURE HAVE BEEN
PLACED AGAINST SUCH PROPERTY SINCE THE DATE OF RECORDATION OF THE MORTGAGES AND
THAT TITLE TO SUCH PROPERTY IS FREE AND CLEAR OF ALL LIENS (EXCEPT FOR PERMITTED
ENCUMBRANCES).
95
(I)
ALL REQUIRED WORK SHALL COMPLY WITH ALL
LEGAL REQUIREMENTS AND APPLICABLE INSURANCE REQUIREMENTS INCLUDING, WITHOUT
LIMITATION, APPLICABLE BUILDING CODES, SPECIAL USE PERMITS, ENVIRONMENTAL
REGULATIONS, AND REQUIREMENTS OF INSURANCE UNDERWRITERS.
(J)
BORROWER HEREBY ASSIGNS TO LENDER ALL
RIGHTS AND CLAIMS BORROWER MAY HAVE AGAINST ALL PERSONS SUPPLYING LABOR OR
MATERIALS IN CONNECTION WITH THE REQUIRED WORK; PROVIDED, HOWEVER, THAT LENDER
MAY NOT PURSUE ANY SUCH RIGHTS OR CLAIMS UNLESS AN EVENT OF DEFAULT HAS OCCURRED
AND REMAINS UNCURED.
Section 9.5.
RELEASE OF RESERVE FUNDS
(A)
WITH RESPECT TO A PROPERTY UPON WRITTEN
REQUEST FROM BORROWER AND IN ALL INSTANCES SATISFACTION OF THE REQUIREMENTS SET
FORTH IN THIS AGREEMENT, LENDER SHALL PROMPTLY DISBURSE TO BORROWER AMOUNTS FROM
(I) THE APPLICABLE REQUIRED REPAIR ACCOUNT TO THE EXTENT NECESSARY TO REIMBURSE
BORROWER FOR THE ACTUAL COSTS OF EACH REQUIRED REPAIR (BUT NOT EXCEEDING 125% OF
THE ORIGINAL ESTIMATED COST OF SUCH REQUIRED REPAIR AS SET FORTH ON SCHEDULE I,
UNLESS LENDER HAS AGREED TO REIMBURSE BORROWER FOR SUCH EXCESS COST PURSUANT TO
SECTION 9.5(F)), (II) THE APPLICABLE REPLACEMENT RESERVE ACCOUNT TO THE EXTENT
NECESSARY TO REIMBURSE BORROWER FOR THE ACTUAL COSTS OF ANY APPROVED
REPLACEMENTS OR (III) THE PIP RESERVE ACCOUNT TO THE EXTENT NECESSARY TO
REIMBURSE BORROWER FOR THE ACTUAL COSTS OF ANY REQUIRED PIP REPLACEMENTS TO THE
EXTENT FUNDS IN THE APPLICABLE REPLACEMENT RESERVE ACCOUNT ARE INSUFFICIENT FOR
SUCH REQUIRED PIP REPLACEMENTS.
NOTWITHSTANDING THE PRECEDING SENTENCE, WITH
RESPECT TO ANY PROPERTY, IN NO EVENT SHALL LENDER BE REQUIRED TO (X) DISBURSE
ANY AMOUNTS WHICH WOULD CAUSE THE AMOUNT OF FUNDS REMAINING IN THE APPLICABLE
REQUIRED REPAIR ACCOUNT AFTER ANY DISBURSEMENT (OTHER THAN WITH RESPECT TO THE
FINAL DISBURSEMENT) TO BE LESS THAN 125% OF THE THEN CURRENT ESTIMATED COST OF
COMPLETING ALL REMAINING REQUIRED REPAIRS FOR SUCH PROPERTY, (Y) DISBURSE FUNDS
FROM ANY OF THE RESERVE ACCOUNTS IF AN EVENT OF DEFAULT EXISTS, OR (Z) DISBURSE
FUNDS FROM ANY REPLACEMENT RESERVE ACCOUNT OR THE PIP RESERVE ACCOUNT TO
REIMBURSE BORROWER FOR THE COSTS OF ROUTINE REPAIRS OR MAINTENANCE TO SUCH
PROPERTY (OTHER THAN FF&E REPLACEMENTS REQUIRED PURSUANT TO ANY PIP REPORT) OR
FOR COSTS WHICH ARE TO BE REIMBURSED FROM FUNDS HELD IN THE RELATED REQUIRED
REPAIR ACCOUNT OR THE PIP RESERVE ACCOUNT.
(B)
EACH REQUEST FOR DISBURSEMENT FROM ANY OF
THE RESERVE ACCOUNTS SHALL BE ON A FORM PROVIDED OR APPROVED BY LENDER AND SHALL
(I) INCLUDE COPIES OF INVOICES FOR ALL ITEMS OR MATERIALS PURCHASED AND ALL
LABOR OR SERVICES PROVIDED AND (II) SPECIFY (A) THE REQUIRED WORK FOR WHICH THE
DISBURSEMENT IS REQUESTED, INCLUDING, BUT NOT LIMITED TO, THE PROPERTY(IES) TO
WHICH