Operating Deposit Sample Clauses
The Operating Deposit clause establishes the requirement for one party, typically a tenant or operator, to provide a deposit to the other party, often a landlord or property owner, to cover ongoing operational expenses or obligations. This deposit is usually held in a designated account and may be used to pay for utilities, maintenance, or other recurring costs associated with the operation of the premises. By requiring an operating deposit, the clause ensures that funds are readily available to meet essential expenses, thereby reducing the risk of non-payment and ensuring the smooth functioning of the property or business operations.
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Operating Deposit. (a) The Parties recognize that the Operating Agent may be obligated to make payments of Operating Costs before it receives the monthly payments from the Lessee/Owner Parties. To provide cash flow to enable the Operating Agent to pay such costs, each Lessee/Owner Party shall maintain with the Operating Agent an operating deposit equal to 50% of the amount of its current invoice for Operating Costs. Each monthly invoice, commencing with the second, shall reflect an adjustment (payment amount or credit) equal to the difference between the Lessee/Owner Party’s current operating deposit obligation, and its balance after the preceding deposit.
(b) The operating deposit percentage set forth in Section 10.2(a) shall be reassessed and adjusted, if appropriate, based upon actual experience after the first two years of commercial operation of Elm Road Unit 2 as part of each audit performed pursuant to Section 4.4(b).
Operating Deposit. Upon the Effective Date, Owner will deposit in the Segregated Operating Account an “Operating Deposit” in the amount set forth in the Term Sheet. Manager may draw on the Operating Deposit to timely pay the Aircraft costs, expenses and fees which are the obligation of the Owner as they occur. Payments made by Owner pursuant to invoices presented from Manager shall be used to replenish the Operating Deposit and to pay costs not previously paid. Within sixty (60) days after termination of this Agreement, Manager shall pay to Owner the balance remaining in the Operating Deposit net of operating costs incurred prior to the termination of the Agreement but paid by Manager upon receipt of the relevant invoices after the termination of the Agreement. Concurrently with the remittance to Owner of the balance of the Operating Deposit, Manager shall provide Owner the supporting detailed documentation with respect to the operating costs charged to the Operating Deposit.