Common use of Disbursement of Investor Funds Clause in Contracts

Disbursement of Investor Funds. If at any time on or prior to the Closing Date, the Minimum Offering Requirement is satisfied, the Escrow Agent shall release and deliver the Investor Funds, including all earnings thereon for Investor Funds held for more than 35 calendar days, promptly to the Company. Earnings on Investor Funds held for less than 35 calendar days shall, at the time of release, by promptly paid and delivered to the appropriate Subscriber. The Escrow Agent agrees that Investor Funds in the Escrow Account shall not be released to the Company until and unless the Escrow Agent receives a written certificate or affidavit stating that the Minimum Offering Requirement has been timely met from the Company’s Chief Executive Officer or Chief Financial Officer. After the Minimum Offering Requirement has been timely met and the Investor Funds in the Escrow Account representing the Minimum Offering Requirement have been disbursed to the Company, (i) the Escrow Account shall remain open and the Company shall continue to cause subscriptions for Shares that are received from subscribers who are residents of [State] (“[State] Subscribers”) or subscribers who are residents of any other state (“Other States”) identified by written notice from the Company (“Other Subscribers”) to be deposited therein until the Company informs the Escrow Agent in writing to close the Escrow Account, and (ii) any subscription documents and instruments of payment received by the Escrow Agent from Subscribers other than [State] Subscribers and Other Subscribers shall be forwarded to the Company on the next Disbursement Date (as defined below). After the satisfaction of the aforementioned provisions of this Section 2(b), in the event the Company receives subscriptions made payable to the Escrow Agent (other than subscriptions that are received from [State] Subscribers or Other Subscribers), subscription proceeds may continue to be received in the Escrow Account generally, but to the extent such proceeds shall not be subject to escrow due to the satisfaction of the aforementioned provisions of this Section 2(b), such proceeds are not subject to this Agreement and, at the instruction of the Company to the Escrow Agent, shall be transferred from the Escrow Account or deposited directly into, as the case may be, a commercial deposit account in the name of the Company with the Escrow Agent (the “Deposit Account”) that has been previously established by the Company, unless otherwise directed by the Company. The “Disbursement Date” shall be each of the first business day, and the first business day after the fifteenth day, of each month. Subject to the provisions set forth in this Agreement, if the Escrow Agent has not received a certificate or affidavit from the Company’s Chief Executive Officer or Chief Financial Officer certifying that the Minimum Offering Requirement has been timely met during the Escrow Period, the Escrow Agent shall promptly return the Investor Funds, including interest or any other income earned thereon, to the Subscribers (including any [State] Subscribers and Other Subscribers), per the name, address and in the amounts provided by the Company, the Dealer Manager or the Transfer Agent to the Escrow Agent without deduction, penalty or expense, and the Escrow Agent shall notify the Company and the Dealer Manager in writing of the distribution of the Investor Funds. The subscription payments returned to each Subscriber shall be free and clear of any and all claims of the Company or any creditors of the Company, the Dealer Manager, any Participating Broker-Dealer or any of their respective affiliates.

Disbursement of Investor Funds. If at any time on or prior to the Closing Date, the Minimum Offering Requirement is satisfied, the Escrow Agent shall release and deliver the Investor Funds, including all earnings thereon for Investor Funds held for more than 35 calendar days, promptly to the Company. Earnings on Investor Funds held for less than 35 calendar days shall, at the time of release, by promptly paid and delivered to the appropriate Subscriber. The Escrow Agent agrees that Investor Funds in the Escrow Account shall not be released to the Company until and unless the Escrow Agent receives a written certificate or affidavit stating that the Minimum Offering Requirement has been timely met from the Company’s Chief Executive Officer or Chief Financial Officer. After the Minimum Offering Requirement has been timely met and the Investor Funds in the Escrow Account representing the Minimum Offering Requirement have been disbursed to the Company, (i) the Escrow Account shall remain open and the Company shall continue to cause subscriptions for Shares that are received from subscribers who are residents of [State] certain states (“[State] State Subscribers”) or subscribers who are residents of any other state states (“Other States”) identified by written notice from the Company (“Other Subscribers”) to be deposited therein until the Company informs the Escrow Agent in writing to close the Escrow Account, and (ii) any subscription documents and instruments of payment received by the Escrow Agent from Subscribers other than [State] State Subscribers and Other Subscribers shall be forwarded to the Company on the next Disbursement Date (as defined below). After the satisfaction of the aforementioned provisions of this Section 2(b), in the event the Company receives subscriptions made payable to the Escrow Agent (other than subscriptions that are received from [State] State Subscribers or Other Subscribers), subscription proceeds may continue to be received in the Escrow Account generally, but to the extent such proceeds shall not be subject to escrow due to the satisfaction of the aforementioned provisions of this Section 2(b), such proceeds are not subject to this Agreement and, at the instruction of the Company to the Escrow Agent, shall be transferred from the Escrow Account or deposited directly into, as the case may be, a commercial deposit account in the name of the Company with the Escrow Agent (the “Deposit Account”) that has been previously established by the Company, unless otherwise directed by the Company. The “Disbursement Date” shall be each of the first business day, and the first business day after the fifteenth day, of each month. Subject to the provisions set forth in this Agreement, if the Escrow Agent has not received a certificate or affidavit from the Company’s Chief Executive Officer or Chief Financial Officer certifying that the Minimum Offering Requirement has been timely met during the Escrow Period, the Escrow Agent shall promptly return the Investor Funds, including interest or any other income earned thereon, to the Subscribers (including any [State] State Subscribers and Other Subscribers), per the name, address and in the amounts provided by the Company, the Dealer Manager or the Transfer Agent to the Escrow Agent without deduction, penalty or expense, and the Escrow Agent shall notify the Company and the Dealer Manager in writing of the distribution of the Investor Funds. The subscription payments returned to each Subscriber shall be free and clear of any and all claims of the Company or any creditors of the Company, the Dealer Manager, any Participating Broker-Dealer or any of their respective affiliates.

Disbursement of Investor Funds. If at any time on or prior to the Closing Date, Date the Minimum Offering Requirement is satisfied, the Escrow Agent shall release and deliver the Investor Funds, including all earnings thereon for Investor Funds held for more than 35 calendar days, promptly to the Company. Earnings on Investor Funds held for less than 35 calendar days shall, at the time of release, by promptly paid and delivered to the appropriate Subscriber. The Escrow Agent agrees that Investor Funds in the Escrow Account shall not be released to the Company until and unless the Escrow Agent receives a written certificate or affidavit stating that the Minimum Offering Requirement has been timely met from the Company’s Chief Executive Officer or Chief Financial Officer. After the Minimum Offering Requirement has been timely met and the Investor Funds in the Escrow Account representing the Minimum Offering Requirement have been disbursed to the Company, (i) the Escrow Account shall remain open and the Company shall continue to cause subscriptions for Shares that are received from subscribers who are residents of [State] Tennessee (“[State] Tennessee Subscribers”) or subscribers who are residents of any other state (“Other States”) identified by written notice from the Company (“Other Subscribers”) to be deposited therein until the Company informs the Escrow Agent in writing to close the Escrow Account, and (ii) any subscription documents and instruments of payment received by the Escrow Agent from Subscribers other than [State] Tennessee Subscribers and Other Subscribers shall be forwarded to the Company on the next Disbursement Date (as defined below). After the satisfaction of the aforementioned provisions of this Section 2(b), in the event the Company receives subscriptions made payable to the Escrow Agent (other than subscriptions that are received from [State] Tennessee Subscribers or Other Subscribers), subscription proceeds may continue to be received in the Escrow Account generally, but to the extent such proceeds shall not be subject to escrow due to the satisfaction of the aforementioned provisions of this Section 2(b), such proceeds are not subject to this Agreement and, at the instruction of the Company to the Escrow Agent, shall be transferred from the Escrow Account or deposited directly into, as the case may be, a commercial deposit account in the name of the Company with the Escrow Agent (the “Deposit Account”) that has been previously established by the Company, unless otherwise directed by the Company. The “Disbursement Date” shall be each of the first business day, and the first business day after the fifteenth day, of each month. Subject to the provisions set forth in this Agreement, if the Escrow Agent has not received a certificate or affidavit from the Company’s Chief Executive Officer or Chief Financial Officer certifying that the Minimum Offering Requirement has been timely met during the Escrow Period, the Escrow Agent shall promptly return the Investor Funds, including interest or any other income earned thereon, to the Subscribers (including any [State] Tennessee Subscribers and Other Subscribers), per the name, address and in the amounts provided by the Company, the Dealer Manager or the Transfer Agent to the Escrow Agent without deduction, penalty or expense, and the Escrow Agent shall notify the Company and the Dealer Manager in writing of the distribution of the Investor Funds. The subscription payments returned to each Subscriber shall be free and clear of any and all claims of the Company or any creditors of the Company, the Dealer Manager, any Participating Broker-Dealer or any of their respective affiliates.