Determining Replacement Reserve
The minimum Replacement ReserveReplacement ReserveCustodial Account established by the Lender and funded by deposits from the Borrower over the term of the Mortgage Loan to fund the replacement of capital items at the Property. amount must equal the greater of
- the amount calculated per Part II, Chapter 4: Inspections and Reserves, Section 404: Replacement Reserve, or
- $250 per unit per year.