Reserves Accounts Clause Samples
The Reserves Accounts clause establishes the requirement for maintaining specific accounts where funds are set aside to cover anticipated obligations or potential liabilities. Typically, these accounts are funded by periodic deposits from the party responsible, and the funds may be used to pay for future expenses such as taxes, insurance, or maintenance costs related to the underlying agreement. This clause ensures that sufficient resources are available to meet certain financial commitments, thereby reducing the risk of default and providing assurance to all parties involved.
Reserves Accounts. If the Loan is made a part of a Securitization, Borrower acknowledges that all funds held by Lender in the Reserve Accounts in accordance with this Loan Agreement or the other Loan Documents shall be deposited in "eligible accounts" at "eligible institutions" or invested in "permitted investments" as then defined and required by the Rating Agencies, and this Loan Agreement will automatically be amended to so provide.
Reserves Accounts. At the Closing, Borrowers acquired, among other things (i) a certain cash escrow account held at the Cypress Village Project in the amount of $2,250,612.81 (the "CYPRESS ESCROW") and (ii) a certain cash escrow account held at the ▇▇▇▇▇-Run Project in the amount of $5,405,589.88 (the "▇▇▇▇▇-RUN ESCROW"; and together with the Cypress Escrow, the "ACQUIRED ESCROWS"). Notwithstanding anything contained in this Article IV to the contrary, (i) the ▇▇▇▇▇-Run Escrow shall be held in an Approved Bank Account and the amounts from time to time contained therein shall be used to fund any costs or expenses in respect of the ▇▇▇▇▇-Run Project and (ii) the Cypress Escrow and all amounts from time to time contained therein shall be used by Borrowers in accordance with applicable Law, the May 6 Order and the Loan Agreement (including, without limitation, used by Borrowers to distribute to Affiliates of Borrowers if permitted by each of the foregoing). Borrowers grant to Agent, for the benefit of Lenders, a security interest in all Entrance Fee Deposits, security deposits, Acquired Escrows and any other sums held on deposit, in escrow, in trust or in reserve in connection with or in respect of the Projects (collectively, the "PROJECT FUNDS"), for the purpose of securing the Loan. Concurrently herewith, the Operators have granted to Agent for the benefit of Lenders a security interest in the Project Funds for the purpose of securing the Loan.