Common use of Project Deposit Clause in Contracts

Project Deposit. If at any time the Administrative Agent determines that the sum of (i) the unadvanced portion of the Construction Loan Facility to which the Borrower is entitled plus (ii) the amount of the Aggregate Project Cost scheduled to be paid by the Borrower from other funds which are available, set aside and committed, to the Administrative Agent's reasonable satisfaction, is or will be insufficient to pay the unpaid actual Aggregate Project Cost, the Borrower shall cause MedCath Incorporated, within seven (7) days after written notice from the Administrative Agent, to deposit with the Administrative Agent for the benefit of the Lenders the amount of the deficiency (the "Project Deposit") in an interest-bearing account, with interest earned thereon to be part of the Project Deposit. The Project Deposit is hereby pledged as additional collateral for the Obligations, and the Borrower hereby grants and conveys to the Administrative Agent for the benefit of the Lenders a security interest in all funds so deposited with the Administrative Agent as additional collateral for the Obligations. Upon the occurrence of an Event of Default, the Administrative Agent may (but shall have no obligation to) apply all or any part of the Project Deposit against the unpaid Obligations in such order as the Required Lenders determine. Upon (i) the issuance of the certificate of occupancy for the Improvements and (ii) the Administrative Agent's confirmation that either (A) the Borrower has satisfied all of obligations required to be paid by the Borrower in connection with the construction of the Project or (B) the Borrower has reserved such funds necessary to satisfy the remaining obligations to be paid by the Borrower in connection with the construction of the Project, all funds remaining in the Project Deposit, shall be used to prepay the Construction Loan Facility to the extent necessary to ensure that the outstanding principal amount under the Construction Loan Facility does not exceed an amount equal to the lesser of (x) eighty percent (80%) of the Aggregate Project Cost or (y) seventy-five percent (75%) of the Appraised Value. The balance, if any, shall be returned to the Borrower.

Project Deposit. If at any time the Administrative Agent determines that the sum of (i) the unadvanced portion of the Construction Loan Facility to which the Borrower is entitled plus (ii) the amount of the Aggregate Project Cost scheduled to be paid by the Borrower from other funds which are available, set aside and committed, to the Administrative Agent's reasonable satisfaction, is or will be insufficient to pay the unpaid actual Aggregate Project Cost, the Borrower shall cause MedCath Incorporated, within seven (7) days after written notice from the Administrative Agent, to deposit with the Administrative Agent for the benefit of the Lenders the amount of the deficiency (the "Project Deposit") in an interest-bearing account, with interest earned thereon to be part of the Project Deposit. The Project Deposit is hereby pledged as additional collateral for the Obligations, and the Borrower hereby grants and conveys to the Administrative Agent for the benefit of the Lenders a security interest in all funds so deposited with the Administrative Agent as additional collateral for the Obligations. Upon the occurrence of an Event of Default, the Administrative Agent may (but shall have no obligation to) apply all or any part of the Project Deposit against the unpaid Obligations in such order as the Required Lenders determine. Upon (i) the issuance of the certificate of occupancy for the Improvements and (ii) the Administrative Agent's confirmation that either (A) the Borrower has satisfied of all of obligations required to be paid by the Borrower in connection with the construction of the Project or (B) the Borrower has reserved such funds necessary to satisfy the remaining obligations to be paid by the Borrower in connection with the construction of the Project), all funds remaining in the Project Deposit, shall be used to prepay the Construction Loan Facility to the extent necessary to ensure that the outstanding principal amount under the Construction Loan Facility does not exceed an amount equal to the lesser of (x) eighty percent (80%) of the Aggregate Project Cost or (y) seventy-five percent (75%) of the Appraised Value. The balance, if any, shall be returned to the Borrower.

Project Deposit. If at any time the Administrative Agent determines that the sum of (i) the unadvanced portion of the Construction Loan Facility to which the Borrower is entitled plus (ii) the amount of the Aggregate Project Cost scheduled to be paid by the Borrower from other funds which are available, set aside and committed, to the Administrative Agent's reasonable satisfaction, is or will be insufficient to pay the unpaid actual Aggregate Project Cost, the Borrower shall cause MedCath IncorporatedFinCo, within seven (7) days xxxx after written notice from the Administrative Agent, to deposit with the Administrative Agent for the benefit of the Lenders the amount of the deficiency (the "Project Deposit") in an interest-bearing account, with interest earned thereon to be part of the Project Deposit. The Project Deposit is hereby pledged as additional collateral for the Obligations, and the Borrower hereby grants and conveys to the Administrative Agent for the benefit of the Lenders a security interest in all funds so deposited with the Administrative Agent as additional collateral for the Obligations. Upon the occurrence of an Event of Default, the Administrative Agent may (but shall have no obligation to) apply all or any part of the Project Deposit against the unpaid Obligations in such order as the Required Lenders determine. Upon (i) the issuance of the certificate of occupancy for the Improvements and (ii) the Administrative Agent's confirmation that either (A) the Borrower has satisfied of all of obligations required to be paid by the Borrower in connection with the construction of the Project or (B) the Borrower has reserved such funds necessary to satisfy the remaining obligations to be paid by the Borrower in connection with the construction of the Project), all funds remaining in the Project Deposit, shall be used to prepay the Construction Loan Facility to the extent necessary to ensure that the outstanding principal amount under the Construction Loan Facility does not exceed an amount equal to the lesser of (x) eighty percent (80%) of the Aggregate Project Cost or (y) seventy-five percent (75%) of the Appraised Value. The balance, if any, shall be returned to the Borrower.