Common use of Impounds Clause in Contracts

Impounds. Upon an Event of Default, Mortgagor shall, if requested by Mortgagee, deposit with Mortgagee or Mortgagee’s designee on each monthly payment date as set forth in the Note one-twelfth (1/12) of the reasonably estimated amount of real estate taxes assessed or to be assessed against the Mortgaged Property for the then current year, together with one-twelfth (1/12) of the reasonably estimated total of all insurance premiums required to be paid for the then current year, as estimated by Mortgagee, together with any extra amount necessary so that the next installments of real property taxes and insurance premiums may be paid from the deposit. Such moneys shall at proper times be progressively returned to Mortgagor for use in the actual payment of said taxes and said insurance premiums or, at the sole election of Mortgagee, Mortgagee may use said moneys in actual payment of such taxes and premiums, but nothing in this paragraph shall release Mortgagor from its obligations to pay said taxes as the same become due and payable under the provisions hereof and to maintain in force all insurance policies as required hereby. All impounds required under this paragraph shall be deposited in a non-interest bearing account of Mortgagee, to be withdrawn by Mortgagee at such times and in such amounts as shall be deemed appropriate by Mortgagee. All amounts deposited under this paragraph are hereby assigned to Mortgagee as additional security for all indebtedness secured by this Mortgage, and so long as any Default as set forth herein including a default in the payment of any money or the performance of any covenant or obligation herein contained or secured hereby exists, then any deposits made by Mortgagor under this paragraph may, at the option of Mortgagee, be applied to the payment of principal and interest or other indebtedness secured hereby, in lieu of being applied to any of the purposes of this paragraph A.10 previously stated.

Impounds. Upon an Event of DefaultSubject to Section 2.6(d) with respect to Taxes and insurance premiums, Mortgagor shall, if requested by Mortgagee, Lender may elect that Borrower shall deposit with Mortgagee or Mortgagee’s designee on each monthly payment date as set forth in the Note Lender monthly, one-twelfth (1/121/12th) of the reasonably estimated amount of annual charges for ground or other rent, if any, insurance premiums and real estate taxes assessed taxes, assessments and similar charges relating to the Project, and Borrower shall do all things necessary or desirable to comply with Lender election. At or before the initial advance of the Loan, Borrower shall deposit with ▇▇▇▇▇▇ a sum of money which together with the monthly installments will be assessed against sufficient to make each of such payments thirty (30) days prior to the Mortgaged Property date any delinquency or penalty becomes due with respect to such payments. Deposits shall be made on the basis of ▇▇▇▇▇▇’s estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at ▇▇▇▇▇▇’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year, together ). All funds so deposited shall be held by ▇▇▇▇▇▇ and may be commingled with one-twelfth (1/12) of the reasonably estimated total of ▇▇▇▇▇▇’s general funds. Borrower hereby grants to Lender a continuing security interest in all insurance premiums required to be paid funds so deposited with Lender for the then current year, as estimated by Mortgagee, together with any extra amount necessary so that purpose of securing the next installments of real property taxes and insurance premiums may be paid from the depositLoan. Such moneys shall at proper times be progressively returned to Mortgagor for use in the actual payment of said taxes and said insurance premiums or, at the sole election of Mortgagee, Mortgagee may use said moneys in actual payment of such taxes and premiums, but nothing in this paragraph shall release Mortgagor from its obligations to pay said taxes as the same become due and payable under the provisions hereof and to maintain in force all insurance policies as required hereby. All impounds required under this paragraph shall be The funds deposited in a non-interest bearing account of Mortgagee, to be withdrawn by Mortgagee at such times and in such amounts as shall be deemed appropriate by Mortgagee. All amounts deposited under this paragraph are hereby assigned to Mortgagee as additional security for all indebtedness secured by this Mortgage, and so long as any Default as set forth herein including a default in the payment of any money or the performance of any covenant or obligation herein contained or secured hereby exists, then any deposits made by Mortgagor under this paragraph may, at ▇▇▇▇▇▇’s sole election, be applied in payment of the option charges for which such funds have been deposited, provided that while an Event of MortgageeDefault exists, such funds may be applied to the payment of principal the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by ▇▇▇▇▇▇. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and interest or other indebtedness secured hereby, in lieu of being applied to any of the purposes of this paragraph A.10 previously stated▇▇▇▇▇▇ has received a bill for such charges.

Impounds. Upon an Event of Any impounds payable by Mortgagor under the Loan Documents (“Impounds”) shall be deposited into one or more segregated or commingled accounts maintained by Mortgagee or its servicing agent. Except as otherwise provided in the Loan Documents, such account(s) shall not bear interest. Mortgagee shall not be a trustee, special depository or other fiduciary for Mortgagor with respect to such account. If no Default exists, Mortgagee shall apply all Impounds in accordance with the Loan Documents. If a Default exists, Mortgagee may apply any or all Impounds to any Secured Obligation or to cure such Default, whereupon Mortgagor shallshall MORTGAGE (SOUTH CAROLINA) ▇▇▇▇▇ Fargo/▇▇▇▇ Properties/Cracker Barrel Loan ▇▇. ▇▇-▇▇▇▇▇▇▇▇/▇▇▇▇▇ ▇▇. ▇▇▇ promptly restore all Impounds so applied and cure all Defaults not cured by such application. The obligations of Mortgagor hereunder shall not be diminished by Mortgagor’s deposits of Impounds, if requested except to the extent that such obligations are actually satisfied by Mortgagee’s application of such Impounds. Upon any assignment of this Mortgage, deposit with Mortgagee or may assign all Impounds in its possession to Mortgagee’s designee on each monthly payment date as set forth in the Note one-twelfth assignee, whereupon Mortgagee shall be released from all liability with respect to such Impounds. Within sixty (1/1260) days following full repayment of the reasonably estimated amount Secured Obligations (other than as a consequence of real estate taxes assessed foreclosure or conveyance in lieu of foreclosure) or at such earlier time as Mortgagee may elect, Mortgagee shall pay to be assessed against the Mortgaged Property for the then current yearMortgagor all Impounds in its possession, together with one-twelfth (1/12) of the reasonably estimated total of all insurance premiums required and no other party shall have any right or claim thereto. Mortgagor shall deliver to be paid for the then current year, as estimated by Mortgagee, together with any extra amount necessary so that the next installments of real property promptly upon receipt, all bills for taxes and insurance premiums may be paid from the deposit. Such moneys shall at proper times be progressively returned to Mortgagor for use in the actual payment of said taxes and said insurance premiums or, at the sole election of Mortgagee, which Mortgagee may use said moneys in actual payment of such taxes and premiums, but nothing in this paragraph shall release Mortgagor from its obligations to pay said taxes as the same become due and payable under the provisions hereof and to maintain in force all insurance policies as has required hereby. All impounds required under this paragraph shall be deposited in a non-interest bearing account of Mortgagee, to be withdrawn by Mortgagee at such times and in such amounts as shall be deemed appropriate by Mortgagee. All amounts deposited under this paragraph are hereby assigned to Mortgagee as additional security for all indebtedness secured by this Mortgage, and so long as any Default as set forth herein including a default in the payment of any money or the performance of any covenant or obligation herein contained or secured hereby exists, then any deposits made by Mortgagor under this paragraph may, at the option of Mortgagee, be applied to the payment of principal and interest or other indebtedness secured hereby, in lieu of being applied to any of the purposes of this paragraph A.10 previously statedImpounds.

Impounds. Upon an Event of Default, Mortgagor shall, if requested by Mortgagee, Borrower shall deposit with Mortgagee or Mortgagee’s designee on each monthly payment date as set forth in the Note Lender, monthly, one-twelfth (1/121/12th) of the reasonably estimated amount Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, (said amounts hereinafter called the “Tax Escrow Fund”). At or before the advance of real estate taxes assessed the Loan, Borrower shall deposit with Lender a sum of money, which together with the monthly installments will be sufficient to make each of such payments thirty (30) days prior to the date, any delinquency or penalty becomes due with respect to such payments. Deposits shall be assessed against made on the Mortgaged Property basis of Lender’s estimate from time to time of the charges for the current year (after giving effect to any reassessment or, at Lender’s election, on the basis of the charges for the prior year, with adjustments when the charges are fixed for the then current year). All funds so deposited shall be held by Lender, together with one-twelfth interest, and may be commingled with Lender’s general funds. To the extent the earnings or interest on the amounts held by Lender for the Tax Escrow Fund exceed the required reserve requirements, Lender shall disburse such excess to Borrower within sixty (1/1260) days following the end of each calendar year. Borrower hereby grants to Lender a security interest in all funds so deposited with Lender for the purpose of securing the Loan. While an Event of Default exists, the funds deposited may be applied in payment of the reasonably estimated total of all insurance premiums required to be paid charges for the then current yearwhich such funds have been deposited, as estimated by Mortgagee, together with any extra amount necessary so that the next installments of real property taxes and insurance premiums may be paid from the deposit. Such moneys shall at proper times be progressively returned to Mortgagor for use in the actual payment of said taxes and said insurance premiums or, at the sole election of Mortgagee, Mortgagee may use said moneys in actual payment of such taxes and premiums, but nothing in this paragraph shall release Mortgagor from its obligations to pay said taxes as the same become due and payable under the provisions hereof and to maintain in force all insurance policies as required hereby. All impounds required under this paragraph shall be deposited in a non-interest bearing account of Mortgagee, to be withdrawn by Mortgagee at such times and in such amounts as shall be deemed appropriate by Mortgagee. All amounts deposited under this paragraph are hereby assigned to Mortgagee as additional security for all indebtedness secured by this Mortgage, and so long as any Default as set forth herein including a default in the payment of any money or the performance of any covenant or obligation herein contained or secured hereby exists, then any deposits made by Mortgagor under this paragraph may, at the option of Mortgagee, be applied to the payment of principal the Loan or any other charges affecting the security of Lender, as Lender may elect, but no such application shall be deemed to have been made by operation of law or otherwise until actually made by Lender. Borrower shall furnish Lender with bills for the charges for which such deposits are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with Lender, together with amounts to be deposited by Borrower before such charges are payable, is insufficient to pay such charges, Borrower shall deposit any deficiency with Lender immediately upon demand. Lender shall pay such charges when the amount on deposit with Lender is sufficient to pay such charges and interest or other indebtedness secured hereby, in lieu of being applied to any of the purposes of this paragraph A.10 previously statedLender has received a b▇▇▇ for such charges.

Impounds. Upon an Event At the option of Default, Mortgagor shall, Beneficiary or if requested Grantor becomes delinquent in any payment required by Mortgagee, deposit with Mortgagee or Mortgagee’s designee on each monthly payment date as set forth in the Note one-twelfth (1/12) any of the reasonably estimated amount Loan Documents, and in order to insure the payment of real estate taxes assessed or to be assessed against the Mortgaged Property assessments, and/or premiums for the then current yearinsurance required pursuant to paragraphs 1 and 2 hereof, together with one-twelfth (1/12) of the reasonably estimated total of all insurance premiums required Grantor shall pay to be paid for the then current year, as estimated by Mortgagee, together with any extra amount necessary so that the next installments of real property taxes and insurance premiums may be paid from the deposit. Such moneys shall at proper times be progressively returned to Mortgagor for use in the actual payment of said taxes and said insurance premiums orBeneficiary, at the sole election time of Mortgageethe making of installments under the Note, Mortgagee may use said moneys and in actual payment addition to any other payments required hereunder, monthly installments of such payments and shall deliver promptly to Beneficiary all bills and notices for such payments Such installments shall equal the estimated amounts of such payments next due (as reasonably estimated by Beneficiary) less all installments already paid therefor, divided by the number of months that are to elapse before one (1) month prior to the date when such payments are due If amounts paid to Beneficiary under provisions of this paragraph 30 are insufficient to discharge the obligation of Grantor for such payments as the same became due, Grantor shall pay to Beneficiary upon demand such additional sums as may be required to fully pay and discharge these items All moneys paid to Beneficiary under the terms of this paragraph 30 may, at Beneficiary's option: (a) be held by Beneficiary to pay taxes assessments and premiumsinsurance before the same become delinquent, but nothing (b) be credited directly to interest and/or principal due upon the indebtedness secured hereby and upon payment by Beneficiary of such taxes, assessments or insurance the amount so paid shall be added to the principal of the indebtedness secured hereby. Nothing in this paragraph 30 shall release Mortgagor from its obligations Grantor of his obligation to pay said taxes assessments and insurance as the same become due and payable under the provisions hereof and to maintain in force all insurance policies as required hereby. All impounds required of this Deed of Trust Deposits made under this paragraph shall 30 may be deposited in a non-commingled with Beneficiary's general funds and Beneficiary have no liability to Grantor for any interest bearing account of Mortgagee, to be withdrawn by Mortgagee at on such times and in such amounts as shall be deemed appropriate by Mortgagee. All amounts deposited under this paragraph are hereby assigned to Mortgagee as additional security for all indebtedness secured by this Mortgage, and so long as any Default as set forth herein including a default in the payment of any money or the performance of any covenant or obligation herein contained or secured hereby exists, then any deposits made by Mortgagor under this paragraph may, at the option of Mortgagee, be applied to the payment of principal and interest or other indebtedness secured hereby, in lieu of being applied to any of the purposes of this paragraph A.10 previously stated.deposits