TI Reserve. At the time of the Disbursement, funds in an amount equal to Fifty Thousand and No/100 Dollars ($50,000.00) (the "TI Reserve") shall be held back and not funded by Lender. Such TI Reserve funds shall be disbursed by Lender to pay real estate taxes due and payable on account of the Property (collectively, "Taxes") and/or current premiums or other charges for insurance required to be maintained pursuant to the terms of this Agreement and the other Loan Documents (collectively "Insurance Costs"), provided there exists no Event of Default or Potential Event of Default; and further provided that Lender has received from Borrower a copy of the applicable ▇▇▇▇ for the Taxes and/or the invoice for the Insurance Costs and written request to disburse funds on account thereof not less than thirty (30) days prior to the date the applicable payment is due. Such disbursements for Taxes and Insurance Costs shall be made, subject to the terms and conditions of this Section 9.13, only to the extent there are sufficient funds in the TI Reserve to pay amounts due. If at any time an Event of Default or Potential Event of Default exists, then Lender shall not have any obligation to pay any Taxes or Insurance Costs out of the TI Reserve (or otherwise) and Borrower shall be obligated hereunder to pay such amounts as and when due. In no event shall Lender be obligated to fund from the TI Reserve (or otherwise) any late charges or fees on account of Borrower's failure to timely deliver to Lender any bills for Taxes or invoices for Insurance Costs. In addition, such TI Reserve funds may, in Lender's sole and absolute discretion, be disbursed by Lender as specified in Section 11.
Appears in 2 contracts
Sources: Loan Agreement, Loan Agreement (Interstate General Co L P)