The SCI Cash Collateral Budget Clause Samples
The SCI Cash Collateral Budget clause establishes a formal budget for the use and management of cash collateral in a financial arrangement. It typically outlines the permitted uses of cash collateral, sets spending limits, and may require approval or reporting for expenditures. For example, it might specify that cash collateral can only be used for certain operational expenses or to pay specific creditors. The core function of this clause is to ensure transparency and control over the use of cash collateral, thereby protecting the interests of secured parties and preventing unauthorized or excessive spending.
The SCI Cash Collateral Budget. Since the Parties entered into the Prior MLCA, the Prepetition Agent and the Required Prepetition Lenders have approved on a month by month basis, the continued payment of rent (as reduced thereunder) for the rent payments due through April 2010. Accordingly, SCI’s ability to make any payments proposed to be made by SCI under this Compromise remains subject to the SCI Final Cash Collateral Order; provided that any and all payments due from SCI under this Compromise shall remain obligations of SCI and shall remain due and owing and, if not paid, constitute a breach of the Compromise by SCI provided, in all cases, that the Master Lease has not been the subject of an entered order approving its rejection prior to the due date of such payment and the terms of this Compromise.