Common use of Scheduled Defeasance Payments Clause in Contracts

Scheduled Defeasance Payments. In connection with any Defeasance Event, Borrower shall purchase Defeasance Collateral (or Lender shall use the Defeasance Deposit to purchase such Defeasance Collateral) which provide payments on or prior to, but as close as possible to, all successive scheduled Payment Dates after the Defeasance Date but prior to the Yield Maintenance Premium Release Date, in amounts equal to the scheduled payments of principal, interest, and any other amounts due on each such Payment Date under the Loan Documents (or, in the case, of a partial defeasance, the portions of such scheduled payments due on each such Payment Date under this Agreement and the Defeased Note) but assuming, for purposes hereof, that the Maturity Date Payment shall be paid on the Yield Maintenance Premium Release Date (the aforedescribed payments, the “Scheduled Defeasance Payments”). Borrower (and/or Maryland Loan Guarantor, as applicable, in the case of the Maryland Property) pursuant to the Security Agreement or other appropriate document, shall authorize and direct that the payments received from the Defeasance Collateral may be made directly to the Holding Account (unless otherwise directed by Lender) and applied to satisfy the obligations of Borrower (and/or Maryland Loan Guarantor, as applicable in the case of the Maryland Property) or Successor Borrower, if applicable, under this Agreement and the Notes (or each Defeased Note, in the case of the defeasance of the Loan in part). Any portion of the Defeasance Deposit in excess of the amount necessary to purchase the Defeasance Collateral required by this Section 2.3.5 and to satisfy Borrower’s other obligations hereunder shall be remitted to Borrower. Following the payment in full of the Notes (and each Defeased Note in the case of a defeasance of the Loan in part) and all other Obligations on the Maturity Date, any amounts remaining in the Defeasance Deposit, if any, shall be remitted to Borrower.