Payments from Sub-Accounts Clause Samples
The "Payments from Sub-Accounts" clause defines the rules and procedures for making payments from designated sub-accounts within a larger financial or escrow arrangement. Typically, this clause outlines who is authorized to initiate payments, the types of expenses or obligations that can be paid from each sub-account, and any required approvals or documentation. For example, in a construction project, separate sub-accounts might be used for labor, materials, and contingency funds, with payments made only for their intended purposes. The core function of this clause is to ensure proper allocation and tracking of funds, reducing the risk of misuse and providing transparency in financial management.
Payments from Sub-Accounts. Borrower irrevocably authorizes Lender to make and, provided no Event of Default shall have occurred and be continuing, Lender hereby agrees to make, the following payments from the Sub-Accounts to the extent of the monies on deposit therefor:
(i) if notified (timely) by Borrower or otherwise determined by Lender in its reasonable discretion that Manager will not pay Impositions or Other Charges, funds from the Tax Reserve Account to Lender sufficient to permit Lender to pay (or otherwise to Borrower to reimburse Borrower for) (A) Impositions and (B) Other Charges, on the respective due dates therefor, and Lender shall so pay such funds to the Governmental Authority having the right to receive such funds (or shall reimburse Borrower or Operating Lessee upon confirmation of payment);
(ii) at any time when the insurance required to be maintained pursuant to this Agreement is provided under a blanket policy in accordance with Article VI hereof and the premiums in respect of such blanket policy are not paid or caused to be paid before such premiums become due and payable or at any time that Manager does not pay, reserve for or otherwise set aside and pay, premiums with respect to the Insurance Requirements and otherwise following an Insurance Reserve Trigger, funds from the Insurance Reserve Account to Lender sufficient to permit Lender to pay insurance premiums for the insurance required to be maintained pursuant to the terms of this Agreement and the Security Instrument, on the respective due dates therefor, and Lender shall so pay such funds to the insurance company having the right to receive such funds;
(iii) funds from the Current Debt Service Reserve Account to Lender sufficient to pay Debt Service on each Payment Date, and Lender, on each Payment Date, shall apply such funds to the payment of the Debt Service payable on such Payment Date; and
(iv) if notified (timely) by Borrower or otherwise determined by Lender in its reasonable discretion that Manager will not reserve for FF&E as required under the Management Agreement, and provided Borrower shall have complied with the procedures set forth in Section 16.6, funds from the FF&E Reserve Account to the Borrower’s Account to pay for FF&E. If and to the extent Guarantor or any Close Affiliate (other than Borrower or Operating Lessee) makes a payment of any Imposition, any insurance premium under a blanket policy or capital expenditure or overhead charge which qualifies as an Operating Expense, with respe...
Payments from Sub-Accounts. (a) Impositions and Insurance Reserve Sub-Account. Lender shall have the right to withdraw amounts on deposit in the Impositions and Insurance Reserve Sub-Account to pay (or reimburse any Borrower for repayment of) Impositions and Insurance Premiums in accordance with the Loan Agreement.
Payments from Sub-Accounts. Borrower irrevocably authorizes Lender to make and, provided no Event of Default shall have occurred and be continuing, Lender hereby agrees to make, the following payments from the Sub-Accounts to the extent of the monies on deposit therefor:
(i) funds from the Prepayment Reserve Account to Lender sufficient to pay the Prepayment Amounts on the next occurring Payment Date, and Lender, on such Payment Date, shall apply such funds to the payment of the Prepayment Amounts payable on such Payment Date;
(ii) during a Reserve Period, no more frequently than once a month, funds from the Operating Expense Reserve Account in an amount equal to the Approved Operating Expenses for the month in which the transfer is made, and transfer the same to Borrower's Account; and
(iii) no more frequently than once in any calendar month, funds from the TI and Leasing Reserve Account to the Borrower's Account to pay for TI and Leasing Costs in accordance with Section 16.1.
Payments from Sub-Accounts. (a) Impositions and Insurance Reserve Sub-Account. Lender shall --------------------------------------------- have the right to withdraw amounts on deposit in the Impositions and Insurance Reserve Sub-Account to pay Impositions and Insurance Premiums not more than thirty (30) days before the date Impositions and Insurance Premiums are due and payable.