Common use of Hotel Account Clause in Contracts

Hotel Account. (a) Lessee directs the Management Parties and the Management Parties acknowledge and agree, pursuant to the terms of the Cash Management Agreement, to deposit or cause to be deposited, all monies received by the Management Parties in the operation of the Hotels, excluding the Operating Funds furnished by Lessee, into the Cash Management System so long as any amounts under the Loan are outstanding. Lessee agrees that disbursements to Lessee from the Operating Expense Subaccount (as defined in the Cash Management Agreement) shall be deposited in a special account or accounts (collectively, the “Hotel Account”), in Lessee’s name (or in one of the Management Parties’ name, as agent of Lessee), in the bank or trust company recommended by the Management Parties and approved by Lessee. Such monies shall not be mingled with the Management Parties’ other funds. Out of the Hotel Account, the Management Parties shall periodically withdraw funds and pay all operating expenses of the Hotels and any fees or compensation of any kind due to them pursuant to this Agreement in accordance with the provisions of this Agreement. Withdrawals from accounts established pursuant to this Article VII shall be signed by representatives of the Management Parties only, provided such representatives are bonded or otherwise insured, and the Management Parties shall supply Lessee with bonds or other insurance upon Lessee’s request unless said bond or other insurance shall have been placed by Lessee and delivered directly by the bonding or insurance company to Lessee. The Management Parties may utilize their respective centralized disbursement accounts in their respective names for accounts payable and payroll disbursements, provided that the Management Parties shall only transfer the necessary amount of funds from the Hotel Account to such centralized disbursement accounts required to make such disbursements on behalf of the Hotels. The parties acknowledge that pursuant to Section 11.5 of the Operating Lease, certain amounts received in the operation of the Hotels and deposited in the Cash Management System may be offset against and applied to the payment of rent due under the Operating Lease.

Hotel Account. (a) Lessee directs the Management Parties Manager and the Management Parties acknowledge Manager acknowledges and agreeagrees, pursuant to the terms of the Cash Management Agreement, to deposit or cause to be deposited, all monies received by the Management Parties Manager in the operation of the Hotels, excluding the Operating Funds furnished by Lessee, into the Cash Management System so long as any amounts under the Loan are outstanding. Lessee agrees that disbursements to Lessee from the Operating Expense Subaccount (as defined in the Cash Management Agreement) shall be deposited in a special account or accounts (collectively, the “Hotel Account”), in Lessee’s name (or in one of the Management Parties’ Manager’s name, as agent of Lessee), in the bank or trust company recommended by the Management Parties Manager and approved by Lessee. Such monies shall not be mingled with the Management Parties’ Manager’s other funds. Out of the Hotel Account, the Management Parties Manager shall periodically withdraw funds and pay all operating expenses of the Hotels and any fees or compensation of any kind due to them it pursuant to this Agreement in accordance with the provisions of this Agreement. Withdrawals from accounts established pursuant to this Article VII shall be signed by representatives of the Management Parties Manager only, provided such representatives are bonded or otherwise insured, and the Management Parties Manager shall supply Lessee with bonds or other insurance upon Lessee’s request unless said bond or other insurance shall have been placed by Lessee and delivered directly by the bonding or insurance company to Lessee. The Management Parties Manager may utilize their respective its centralized disbursement accounts in their respective names its name for accounts payable and payroll disbursements, provided that the Management Parties Manager shall only transfer the necessary amount of funds from the Hotel Account to such centralized disbursement accounts required to make such disbursements on behalf of the Hotels. The parties acknowledge that pursuant to Section 11.5 of the Operating Lease, certain amounts received in the operation of the Hotels and deposited in the Cash Management System may be offset against and applied to the payment of rent due under the Operating Lease.