Common use of Reassessment of Required Deposit Clause in Contracts

Reassessment of Required Deposit. If at any time Lender reasonably determines that the Seasonal Reserve Funds will not be sufficient to pay debt service on the Loan and Operating Expenses and to make required deposits into the other Reserves in the applicable months, Lender may notify Borrower of such determination and of the amount estimated by Lender to make-up such deficiency as reasonably determined by Lender based upon changes in circumstances. Within ten (10) days after such notice from Lender, Borrower shall deliver the deficiency amount to Lender, and Lender shall deposit in the Seasonal Reserve Account and hold and administer same in accordance with this Agreement; provided, however, that in no event shall Borrower be required to deposit amounts under this Section 4.07(c) in excess of the amount of all available cash flow from the Property after payment of debt service on the Loan and Operating Expenses (to the extent not paid directly by the Property Manager) and after making required deposits into the other Reserves.