Common use of Release of Debt Service Reserve Clause in Contracts

Release of Debt Service Reserve. Following the date which is twelve (12) months after the date that Borrower actually deposits funds in the Debt Service Reserve Deposit or delivers the Letter of Credit, upon written request from Borrower, Lender shall, on each Payment Date (until all funds in the Debt Service Reserve have been applied), apply a portion of the Debt Service Reserve or reduce the Letter of Credit by an amount equal to the Monthly Debt Service Payment Amount due for such Payment Date provided that (i) no Event of Default has occurred and is continuing, (ii) the Debt Service Coverage Ratio for the twelve (12) full calendar month period immediately preceding the date of the applicable Payment Date (assuming an interest rate constant equal to the Cure Contract Rate) is at least equal to 1.65:1.00 (the “Required Application Ratio”). Notwithstanding the foregoing, in the event that Lender commences applying the funds in the Debt Service Reserve pursuant to Section 7.5 hereof (such period the “Application Period”) and the Required Application Ratio is not maintained during the Application Period, Lender shall suspend applying the Debt Service Reserve until the later of (i) the Payment Date that is three months from the date of such suspension and (ii) the Payment Date upon which the Required Application Ratio is achieved.

Release of Debt Service Reserve. Following the date which is twelve (12) months after the date that Borrower actually deposits funds in the Debt Service Reserve Deposit or delivers the Letter of Credit, upon written request from Borrower, Lender shall, on each Payment Date (until all funds in the Debt Service Reserve have been applied), apply a portion of the Debt Service Reserve or reduce the Letter of Credit by an amount equal to the Monthly Debt Service Payment Amount due for such Payment Date provided that (i) no Event of Default has occurred and is continuing, (ii) the Debt Service Coverage Ratio for the twelve (12) full calendar month period immediately preceding the date of the applicable Payment Date (assuming an interest rate constant equal to the Cure Contract Rate) is at least equal to 1.65:1.00 (the “"Required Application Ratio”"). Notwithstanding the foregoing, in the event that Lender commences applying the funds in the Debt Service Reserve pursuant to Section 7.5 hereof (such period the “"Application Period”") and the Required Application Ratio is not maintained during the Application Period, Lender shall suspend applying the Debt Service Reserve until the later of (i) the Payment Date that is three months from the date of such suspension and (ii) the Payment Date upon which the Required Application Ratio is achieved.