Common use of Pay Off Loan Clause in Contracts

Pay Off Loan. If Manager does not release the capital expenditure reserve held by Manager on behalf of Contributor with respect to this Hotel at Closing, Acquiror agrees to finance Contributor's payoff of all items creating liens or encumbrances on any of the Personal Property or Inventory, capital leases and for the termination of any Operating Agreements for which Acquiror has requested Contributor to terminate, up to an amount equal to the lesser of (i) the unreleased balance of such capital expenditure reserve or (ii) $150,000 (the "Pay Off Loan"). Acquiror's receipt of evidence reasonably satisfactory to it that Manager has not released reserves of a specified amount is a condition precedent to Acquiror's obligation to advance the Pay Off Loan. The proceeds of the Pay Off Loan, if any, will be applied directly by Acquiror to pay off all items creating liens or encumbrances on any of the Personal Property and Inventory, capital leases, and to terminate any Operating Agreements. Contributor will repay the Pay Off Loan, with accrued interest, by the application of (i) 33.33% of all distributions paid on the Preferred Partnership Units (or Common Partnership Units into which the Preferred Partnership Units are convertible) and (ii) any amounts received by the Contributor from the Manager as a result of the release of the capital expenditure reserve held by Manager. All amounts applied to the Pay Off Loan shall be applied first to accrued interest and then to repayment of principal. Contributor may repay the Pay-Off Loan and accrued interest in whole or part at any time by making supplemental cash payment(s). The interest rate on the Pay Off Loan will be 9% per annum.

Pay Off Loan. If Manager does not release the capital expenditure reserve held by Manager on behalf of Contributor with respect to this Hotel at Closing, Acquiror agrees to finance Contributor's payoff of all items creating liens or encumbrances on any of the Personal Property or Inventory, capital leases and for the termination of any Operating Agreements for which Acquiror has requested Contributor to terminate, up to an amount equal to the lesser of (i) the unreleased balance of such capital expenditure reserve or (ii) $150,000 (the "Pay Off Loan"). Acquiror's receipt of evidence reasonably satisfactory to it that Manager has not released reserves of a specified amount is a condition precedent to Acquiror's obligation to advance the Pay Off Loan. The proceeds of the Pay Off Loan, if any, will be applied directly by Acquiror to pay off all items creating liens or encumbrances on any of the Personal Property and Inventory, capital leases, and to terminate any Operating Agreements. Contributor will repay the Pay Off Loan, with accrued interest, by the application of (i) 33.33% of all distributions paid on the Preferred Partnership Units (or Common Partnership Units into which the Preferred Partnership Units are convertible) and (ii) any amounts received by the Contributor from the Manager as a result of the release of the capital expenditure reserve held by Manager. All amounts applied to the Pay Off Loan shall be applied first to accrued interest and then to repayment of principal. Contributor may repay the Pay-Off Loan and accrued interest in whole or part at any time by making supplemental cash payment(s). The interest rate on the Pay Off Loan will be 9% per annum.cash