Common use of Collections and Disbursements Clause in Contracts

Collections and Disbursements. Manager, with Owner’s prior approval and direction as to the account(s) and financial institution, shall set up the Operating Account in Owner’s name, with Manager having signatory authority. Manager shall deposit all collections (including, but not limited to, Property rent) and receipts of any kind into the Operating Account in accordance with such procedures as Owner may establish via the MOB Policies. Manager shall pay directly from the Operating Account any and all expenditures in accordance with the approved Operating Budget, provided that Manager shall secure Owners approval for all expenditures in excess of $10,000.00 for any one item of operation, except for utilities and such specific monthly and recurring operation and maintenance items which are listed in the approved Operating Budget and for items which would be deemed an emergency and required for maintaining tenancy, but provided Manager will take diligence to contact Owner for approval in the event of an emergency. Manager shall be responsible for any expenses that were not authorized under this Agreement.