Common use of Escrow Amount and Use of Escrow Account Clause in Contracts

Escrow Amount and Use of Escrow Account. Buyer shall withhold the Escrow Amount from the Purchase Price due at Closing, which Escrow Amount shall be deposited into the Escrow Account. Funds held in the Escrow Account shall be applied to pay (i) accounts payable for the Hotel attributable to the period before the Closing and (ii) the cost of the improvements listed on Schedule 2.5, if any, which are required by the Franchisor under its existing project improvement plan. As invoices for accounts payable or PIP expenditures are received by the New Manager or the Company, such invoices shall be submitted to Buyer, with a copy to Interest Owners, and Buyer shall release from the Escrow Account sums sufficient to pay all such invoices. If the Escrow Amount is insufficient to pay all of such accounts payable and PIP expenditures, the Interest Owners shall pay such excess amount to Buyer promptly after Buyer or the Company submits an invoice therefor. Upon completion of the PIP and payment of all costs therefor and upon Buyer’s receipt of a certificate from Interest Owners certifying that all accounts payable attributable to the period before the Closing have been paid, all remaining funds in the Escrow Account shall be released to the Interest Owners.

Escrow Amount and Use of Escrow Account. Buyer shall withhold the Escrow Amount from the Purchase Price due at Closing, which Escrow Amount shall be deposited into the Escrow Account. Funds held in the Escrow Account shall be applied to pay (i) accounts payable for the Hotel Hotels attributable to the period before the Closing and (ii) the cost of the improvements listed on Schedule 2.5, if any, which are required by the each Franchisor under its existing project improvement plan. As invoices for accounts payable or PIP expenditures are received by the New Manager or the Company, such invoices shall be submitted to Buyer, with a copy to Interest Owners, and Buyer shall release from the Escrow Account sums sufficient to pay all such invoices. If the Escrow Amount is insufficient to pay all of such accounts payable and PIP expenditures, the Interest Owners shall pay such excess amount to Buyer promptly after Buyer or the Company submits an invoice therefor. Upon completion of the PIP and payment of all costs therefor and upon Buyer’s receipt of a certificate from Interest Owners certifying that all accounts payable attributable to the period before the Closing have been paid, all remaining funds in the Escrow Account shall be released to the Interest Owners.