Common use of Escrow of Funds Clause in Contracts

Escrow of Funds. Any funds received by the Subscription Agent as payment in connection with subscriptions for shares of Series B Preferred pursuant to the Rights Offering shall be deposited in an escrow account with Guaranty Bank and Trust Company ("Guaranty Bank") to be held in trust and escrow by Guaranty Bank (and shall be invested in a non-interest-bearing bank account or other investment acceptable to the Company) pending receipt of written disbursement instructions from the Company, at which time the funds shall be disbursed in accordance with such written instructions from the Company. The Subscription Agent is hereby authorized and directed to endorse, negotiate and deposit all subscription payments into the escrow account to be maintained by Guaranty Bank. The Subscription Agent shall account on a weekly basis to the Company for all escrowed funds and on a more frequent basis, if requested by the Company.