Common use of Establishment and Use Clause in Contracts

Establishment and Use. Choose the appropriate version of (i): (i) Lender acknowledges that Borrower has established the Repair Escrow Fund by depositing the amount of the Repair Escrow Deposit with Lender. (i) Upon the occurrence of one or more conditions specified in Section 3(b) and/or 3(c) below, Lender may require Borrower to establish a Repair Escrow Fund. (ii) Borrower and Lender agree that Lender will hold all moneys deposited into the Repair Escrow Fund in an interest bearing account if Lender estimates that the Repairs will require longer than ninety (90) days to complete. Lender will not be required to hold the Repair Escrow Deposit in an interest bearing account if the Repairs are required to be completed in ninety (90) days or less. Any interest earned on such moneys will be added to the principal balance of the Repair Escrow Fund and disbursed in accordance with the provisions of this Agreement. Lender will be entitled to deduct from the Repair Escrow Fund a one- time fee in the amount of Dollars ($ ) for establishing the Repair Escrow Fund. Lender will not be responsible for any losses resulting from investment of moneys in the Repair Escrow Fund or for obtaining any specific level or percentage of earnings on such investment. (iii) The Repair Escrow Deposit will, except as otherwise stated in this Agreement, be used for the purpose of paying, or reimbursing Borrower for, the costs of the Repairs.

Establishment and Use. Choose the appropriate version of (i):[CHOOSE THE APPROPRIATE VERSION OF SECTION 3(a)(i).] (i) Lender acknowledges that Borrower has established the Repair Escrow Fund by depositing the amount of the Repair Escrow Deposit with Lender.. [OR] (i) Upon the occurrence of one or more conditions specified in Section 3(b) and/or 3(c) below), Lender may require Borrower to establish a Repair Escrow Fund. (ii) Borrower and Lender agree that Lender will hold all moneys deposited into the Repair Escrow Fund in an interest bearing account if Lender estimates that the Repairs will require longer than ninety (90) 90 days to complete. Lender will not be required to hold the Repair Escrow Deposit in an interest bearing account if the Repairs are required to be completed in ninety (90) 90 days or less. Any interest earned on such moneys will be added to the principal balance of the Repair Escrow Fund and disbursed in accordance with the provisions of this Agreement. Lender will be entitled to deduct from the Repair Escrow Fund a one- one-time fee in the amount of Dollars ($ ) for establishing the Repair Escrow Fund. Lender will not be responsible for any losses resulting from investment of moneys in the Repair Escrow Fund or for obtaining any specific level or percentage of earnings on such investment. (iii) The Repair Escrow Deposit will, except as otherwise stated in this Agreement, be used for the purpose of paying, or reimbursing Borrower for, the costs of the Repairs.