Post-Closing Items Reserve Sub-Account Clause Samples

Post-Closing Items Reserve Sub-Account. On the Closing Date, Lender shall deposit in the Post-Closing Items Reserve Sub-Account out of the proceeds of the Loan an amount equal to $2,000,000. Any and all Moneys remitted to the Post-Closing Items Reserve Sub-Account together with any Permitted Investments in which such Moneys are or will be invested or reinvested during the term of this Agreement shall be held in the Post-Closing Items Reserve Sub-Account and shall be withdrawn by the Collateral Agent (i) after the Collateral Agent has received written notice from the Lender that an Event of Default has occurred and is continuing and the Indebtedness has been accelerated, promptly upon written request of Lender to pay the Principal Indebtedness or (ii) upon written request of the Borrower to pay the Principal Indebtedness. In the event (1) the Borrower notifies the Lender in writing that the Borrower has fulfilled each affirmative covenant set forth in Section 5.1(BB) (including therein reasonable supporting documentation), and the Lender concurs with such fulfillment, or (2) after the Transfer of each Asset or Additional Collateral that was the subject of an affirmative covenant set forth in Section 5.1(BB) or the resolution of such affirmative covenant in a manner acceptable to Lender, the Lender elects to release the funds on deposit in the Post-Closing Items Reserve Sub-Account, the Lender and the Collateral Agent shall release any and all amounts remaining on deposit in the Post-Closing Items Reserve Sub-Account to Borrower. In the event all amounts on deposit in the Post-Closing Items Reserve Sub-Account are not withdrawn and the Borrower satisfies the outstanding Indebtedness in full, the Lender and the Collateral Agent shall release any and all amounts remaining on deposit in the Post-Closing Items Reserve Sub-Account to Borrower on the Payment Date on which the outstanding Indebtedness is repaid in full.