WORKING CAPITAL AND BANK ACCOUNTS. 7.1. Commencing immediately prior to the Takeover Date, Owner will provide Operator with the Minimum Working Capital for the Hotel. Owner shall at all times provide, either from Total Revenues or from other funds of Owner, sufficient funds as reasonably determined by Operator to constitute normal working capital for the uninterrupted and efficient operation of the Hotel (but which, in no event, shall be an amount less than the Minimum Working Capital), in accordance with this Agreement, and to maintain the Standard as required herein (but without negating Operator’s obligation to obtain Owner’s consent to exceed budget amounts if required under Section 8.6). Operator agrees that in determining the required working capital, Operator shall take into account the anticipated Operating Expenses and anticipated Total Revenues of the Hotel for the applicable rolling thirty (30) day period. In furtherance thereof, Operator shall provide to Owner monthly cash flow forecasts covering the next ninety (90) days of the Hotel’s financial needs as part of Operator’s Monthly Cash Flow Forecast. Operator shall manage accounts receivable and inventories as would a prudent operator of a hotel similar to the Hotel and consistent with its operation of its other hotels. Within fourteen (14) days following Operator’s notice to Owner that additional funds are required to pay payroll expenses and other necessary Operating Expenses, Owner shall provide such funds necessary to pay such Operating Expenses. Any such failure to provide such funding within the required time period shall constitute a breach under Section 17.1(A) of this Agreement. Operator may, but shall not be required to, fund such expenses, and in such event, Operator may, in addition to all other rights, repay itself as soon as any funds are available.
7.2. All funds received by Operator in the operation of the Hotel, including working capital furnished by Owner, shall be deposited in an Agency Account in such federally insured financial institution as may be selected by Operator and reasonably approved by Owner and approved by any Mortgagee. Such funds shall not be commingled with Operator’s other funds. To the extent funds are currently available in the Agency Account, Operator shall pay all Operating Expenses and Fixed Charges on behalf of Owner from the Agency Account. Upon Owner’s written request and direction, Operator shall pay on behalf of Owner from the Agency Account (but only to the extent that such funds ...
WORKING CAPITAL AND BANK ACCOUNTS. 8.1. Owner will provide Operator with initial working capital for the Hotel in the amount of $750 per room. Thereafter, funds sufficient in amount to constitute normal working capital for the uninterrupted and efficient operation of the Hotel shall be maintained from Total Revenues (as defined in Section 11.1) in an amount at least equal to the working capital specified in the most recent Cash Flow Forecast (as defined in Section 9.4).
8.2. All funds received by Operator in the operation of the Hotel, including working capital furnished by Owner, shall be deposited in a special account or accounts bearing the name of the Hotel (the "Agency Account") in such federally insured bank, savings and loan or trust company as may be selected by Operator and reasonably approved by Owner. Any successor or substitute bank, savings and loan or trust company shall be selected in the same manner. From the Agency Account, Operator shall pay all Operating Expenses, Fixed Charges, debt service, ground rent, capital costs and other amounts required to be paid by Operator on Owner's behalf under this Agreement (to the extent, in each case, such amounts are permitted or required to be paid under this Agreement). In addition to the Agency Account, an account shall be established at the same institution for a reserve for replacements, substitutions and additions to the FF&E (the "FF&E Reserve Account").
8.3. The Agency Account and the FF&E Reserve Account shall be in the name of Operator as agent for Owner and shall be under the control of Operator. Checks or other documents of withdrawal shall be signed only by representatives of Operator, provided that such representatives shall be bonded or otherwise insured in a manner reasonably satisfactory to Owner. The premiums for bonding or other insurance shall be an Operating Expense except for premiums for bonding off-site executive employees of Operator. Upon the expiration or termination of this Agreement all remaining amounts in the Agency Account and the FF&E Reserve Account shall be transferred to Owner.
8.4. Any security deposit held under a Lease shall be held in a separate account if required by law or the terms of the Lease or if otherwise required by Owner.
WORKING CAPITAL AND BANK ACCOUNTS. On or before the date of commencement of the Initial Operating Term of this Agreement, Owner will provide initial working capital in a sufficient amount to operate the Hotel, and thereafter from time to time throughout the Operating Term, if and as reasonably requested by Operator. Owner shall make available to Operator funds sufficient in amount to constitute normal working capital for the uninterrupted and efficient operation of the Hotel. All funds received for the operation of the Hotel, including working capital furnished by Owner, shall be deposited in such Owner’s account as may be selected by Operator and Owner but may not be commingled with other funds of Operator. Operator shall pay to Owner on the last day of each quarter, all receipts of the Hotel then held by Operator in Owner’s account, which in the reasonable judgment of Operator are in excess of amounts necessary for the operation of the Hotel pursuant to the approved budged and amounts due Operator. Upon the expiration or termination of this Agreement and the payment to Operator of all amounts due Operator hereunder upon such expiration or termination, Owner shall have the sole right to all remaining amounts. Upon the expiration or termination of this Agreement, Owner shall provide and pay, in immediately available funds, any and all amounts due Operator under this Agreement, which liabilities of the Owner shall survive the termination of this Agreement.
WORKING CAPITAL AND BANK ACCOUNTS. 1Working Capital Prior to the Commencement Date, Owner will fund the Operating Account with a commercially reasonable amount of initial working capital for the Hotel, for use during the transition of management to Operator's management of the Hotel. Thereafter, Owner shall at all times provide, either from Total Revenues or from other funds of Owner, funds sufficient in amount, in the good faith business judgment of Operator (as identified in an applicable cash flow forecast pursuant to Section 9.2 below or in a supplement to such cash flow forecast), to constitute normal working capital for the uninterrupted and efficient operation of the Hotel, including without limitation funds sufficient to pay all Operating Expenses as and when due and operate, maintain and equip the Hotel for a period of two (2) months in accordance with all Major Agreements and to maintain the Hotel in a first-class physical condition ("Working Capital"). Working Capital for the first two (2) months of operation of the Hotel has been estimated at $100,000. Operator may adjust the total required Working Capital from time to time as required based upon changes in the Budgets. If at any time the funds in the Operating Account are less than the required Working Capital, Operator shall deliver written notice to Owner of the amount required to be deposited into the Operating Account, and Owner shall deposit such sum into the Operating Account within five (5) days of such written notice; provided that, Operator shall not to exceed three (3) requests per fiscal year.
WORKING CAPITAL AND BANK ACCOUNTS. 7.1. The following special accounts shall be established in connection with the operation of the Hotel:
A. The Deposit Account. All cash (other than cash needed to maintain a reasonable and customary xxxxx cash fund at the Hotel) and checks received by Operator in the operation of the Hotel shall be deposited in a special account or accounts bearing the name of the Hotel (the “Deposit Account”), in such federally insured banks, savings and loans or trust companies as may be designated from time to time by Owner and reasonably approved by Operator. The Deposit Account shall be in the name of Operator as agent for Owner and shall be under the control of Operator. Amounts in the Deposit Account shall not be commingled with other funds of Operator or funds from other properties owned, leased or managed by Operator. Excluding amounts deposited by Operator into the Agency Account sufficient to maintain the Working Capital Reserve (as such term is hereinafter defined), all amounts deposited into the Deposit Account shall be paid into the Owner Account (as hereinafter defined) as set forth in Section 7.1(B). For purposes of this Agreement, the term Working Capital Reserve shall be an amount sufficient to cover any cash shortfalls based upon the monthly cash forecast of projected operating revenues and expenses for the next month (the “Cash Forecast”). To the extent that the Cash Forecast indicates (i) a cash excess, such excess will be transferred to the Owner Account or (ii) a cash shortfall, Owner shall fund such cash shortfall into the Agency Account within five (5) days after receipt by Owner of the Cash Forecast.
WORKING CAPITAL AND BANK ACCOUNTS. 7.1. Commencing immediately prior to the Commencement Date, Owner will provide Operator with Minimum Working Capital for the Hotel. Owner shall at all times provide, either from Total Revenues or from other funds of Owner, sufficient funds as determined in the good faith business judgment of Operator to constitute normal working capital for the uninterrupted and efficient operation of the Hotel (but which, in no event, shall be an amount less than the Minimum Working Capital), including without limitation funds sufficient to operate, maintain and equip the Hotel in accordance with all Major Agreements and to maintain the Hotel in a first-class physical condition. Upon Operator’s notice to Owner that additional funds are required to pay payroll expenses and other necessary Operating Expenses, Owner shall immediately provide the funds necessary to pay such Operating Expenses. Any such failure to provide such funding shall constitute a breach under Section 17.1(A) of this Agreement. Operator may, but shall not be required to, fund such expenses, and in such event, Operator may, in addition to all other rights, repay itself as soon as any funds are available.
7.2. The following bank accounts shall be set up for the Hotel:
WORKING CAPITAL AND BANK ACCOUNTS. 7.1. The following special accounts shall be established in connection with the operation of the Hotel:
WORKING CAPITAL AND BANK ACCOUNTS. 1Prior to the Commencement Date or as otherwise requested by Manager to fund necessary expenses related to the operations of the Hotel, Owner will provide Manager with Initial Working Capital for the Hotel. Owner shall at all times provide, either from Total Operating Revenues or from other funds of Owner, sufficient funds as determined in the good faith business judgment of Manager to constitute normal working capital for the uninterrupted and efficient operation of the Hotel (but which, in no event, shall be an amount less than the Minimum Working Capital), including without limitation funds sufficient to operate, maintain and equip the Hotel in accordance with the Operating Standards. Upon Manager’s notice to Owner that additional funds are required to assure timely payment of all current liabilities of the Hotel, including but not limited to, payroll expenses and other necessary Operating Expenses, which notice may be sent by e-mail, Owner shall within five (5) business days provide the funds necessary to pay such liabilities. Any such failure to provide such funding shall constitute a breach under Section 12.1A of this Agreement.
WORKING CAPITAL AND BANK ACCOUNTS. 2.3.1 The Company shall provide necessary cash to support reasonable working capital needs within the Company’s cash management’s policies and procedures. Manager shall not be in default of its obligations under this Agreement to the extent it is unable to perform any obligation due to the lack of available funds for the operation of the Acquired Business due to the Company’s failure to provide required working capital. In no event shall Manager be required to advance any of its funds for the operation of the Acquired Business.
2.3.2 The cash receipts of the Acquired Business shall be administered in accordance with the Company’s cash receipts policies and procedures.
2.3.3 All funds received in relation to the collection of premiums on behalf of the related carrier, will be deposited into the appropriate premium trust account as designated by the Company.
WORKING CAPITAL AND BANK ACCOUNTS
