Common use of Establishment and Maintenance of Reserve Accounts Clause in Contracts

Establishment and Maintenance of Reserve Accounts. On or before the date hereof, Borrowers shall establish with Lender, or if Lender is not a depository institution or if Lender shall otherwise elect, a depository institution designated by Lender, the following subaccount of the Mezzanine Loan Holding Account which shall be maintained on a ledger entry basis: an account (the “Current Debt Service Reserve Account”), which shall be maintained in accordance with Section 9.2.15 hereof. Each of the Mezzanine Loan Deposit Account, the Mezzanine Loan Holding Account and the Current Debt Service Reserve Account shall be in the name of and under the sole dominion and control of Lender, subject only to Lender’s obligations hereunder to advance funds or otherwise disburse or apply funds therefrom in accordance with this Agreement, and no Borrower shall have the authority or power to make withdrawals from the Current Debt Service Reserve Account. The amount required in the Current Debt Service Reserve Account as of the Closing Date may, at Lender’s election, be deposited on Borrowers’ behalf by Lender’s funding said amount out of the Loan proceeds. Funds in the Current Debt Service Reserve Account shall not be commingled with any other monies. Borrowers shall pay the costs of establishing and maintaining the Current Debt Service Reserve Account and shall pay the costs to maintain and shall maintain the Current Debt Service Reserve Account throughout the term of the Loan.