Receipts From Operations Clause Samples
The 'Receipts From Operations' clause defines how all income or revenue generated from the ongoing activities of a business or project is to be identified and handled. This typically includes money received from sales, services, or other core business functions, and may specify how such receipts are to be recorded, reported, or distributed among parties. By clearly outlining what constitutes operational receipts and how they are managed, this clause ensures transparency and prevents disputes over revenue allocation or accounting practices.
Receipts From Operations. All rents and other income and receipts of the Development (the "Receipts") shall, upon receipt, immediately be deposited in an account in the name of the Mortgagor or the Development with an institution with regular banking offices located in Michigan whose deposits are insured by an agency of the United States Government and shall not be commingled with any other funds. Any person or entity receiving Development Receipts who fails to deposit them as required by this Agreement shall hold the Receipts in trust. The Receipts shall be withdrawn only in accordance with the provisions of this Agreement for the payment of expenses of the Development, including all payments and escrow deposits required by the Mortgage, Section 1602 Mortgage, for Limited Dividend Payments, for the deposit of Surplus Cash into the ORC Account, or for payments into the Replacement Reserve Fund, all as provided in this Agreement.