Common use of Separation of Owner’s Monies Clause in Contracts

Separation of Owner’s Monies. Trust Funds: Deposit all receipts collected for Owner, less any sums properly deducted or disbursed in a financial institution whose deposits are insured by an agency of the United States government. The funds shall be held in Trust Accounts. Agent has two Trust Accounts; i. An “operating” Trust where rents and non-refundable fees are deposited and Owners reserve deposits. Expenses associated with the management of properties are paid from this account. ii. A “security deposit” Trust which holds Tenants’ refundable security deposits. Agent’s Trust Accounts are currently held at Heritage Bank and Agent will promptly notify Owner in writing of any change in depository. All monies received by Agent on behalf of Owner, less any sums properly deducted by Agent pursuant to any of the provisions of this agreement, shall be deposited into a Trust Account maintained by Agent for the deposit of monies of Owners and not co-mingled with the funds of Agent. Agent will not be held liable in the event of Bankruptcy or failure of a depository.