Common use of Reserve Fund Account Clause in Contracts

Reserve Fund Account. After the payment of all Expenses and Permitted Deductions, Manager, on or before the twenty fifth (25th) day of each month will transfer the Reserve Fund Payments from the Operating Account into the Reserve Fund Account. Cash received from the sale of the Hotel’s FF&E in the ordinary course of business will also be deposited into the Reserve Fund Account. If the Hotel’s Operation does not generate sufficient cash to fund the Reserve Fund Account with the Reserve Fund Payments, Owner, within thirty (30) days of Manager’s request, will provide the cash required to fund the Reserve Fund Account in accordance with this Section. Unless Owner and Manager specifically agree to the contrary, the entire balance of the Reserve Fund Account shall be spent each Fiscal Year. At the end of any Fiscal Year, any of the Reserve Fund Account not spent will be carried forward to the next Fiscal Year and will be in addition to the payments to be made into the Reserve Fund Account for such Fiscal Year. Subject to any other uses that may be specifically authorized in this Agreement, Manager and Owner will use the Reserve Fund Account only for the Initial Improvements, Reserve Fund Work and other work authorized in writing by Owner. Notwithstanding the foregoing, Manager agrees that the Reserve Fund Account will be administered and maintained in accordance with any Mortgage and/or cash management agreement with any Mortgagee, provided that Manager has been furnished with copies of any such agreement.