Depository Account Clause Samples
A Depository Account clause defines the establishment and use of a specific bank account to hold funds related to a contract or transaction. Typically, this clause outlines who controls the account, the permitted types of deposits and withdrawals, and any conditions or restrictions on accessing the funds. For example, it may require that all payments under the agreement be made into this account, or that disbursements can only occur upon meeting certain milestones. The core function of this clause is to centralize and safeguard the handling of funds, ensuring transparency and reducing the risk of misappropriation or disputes over payments.
Depository Account. A trust fund account for the benefit of Owner established and maintained in an FDIC insured or guaranteed account to be opened by the Owner.
Depository Account. The term "Depository Account" shall mean the ------------------ bank account referred to in Section 4.8 hereof.
Depository Account. Manager shall establish a “Depository Account” to be used solely for the Property, in the name of the Property which shall be used for the deposit of all funds received from the operation of the Property. Upon Owner’s written request, this account may also be used for reserves and/or impounds for taxes and insurance. The Depository Account shall be an interest bearing account, subject to the terms and conditions imposed by the banking institution. Owner shall be responsible for maintaining a minimum balance of Five Thousand Dollars ($5,000) in the Depository Account. The maximum balance for the Depository Account shall be determined based upon the applicable Approved Budget and desired level of reserves and may be adjusted from time to time as necessary and agreed upon in writing by Manager and Owner.
Depository Account. Until the Note and the other Loan Documents are paid in full, each Borrower shall maintain a depository account with the Agent.
Depository Account. MGA shall accept in a fiduciary capacity, on behalf of the Company, all premiums, policies, fees, interest, and service charges collected and other funds relating to the business written under this Agreement. The Company shall establish and maintain a “Depository Account” in a bank mutually agreed upon by MGA and the Company. The bank must be a member of the Federal Reserve System whose accounts are insured by the Federal Deposit Insurance Corporation. All premiums, policy fees, interest, and service charges collected by MGA shall be deposited into the Depository Account. Deposits to the Depository Account are to be made daily or no less seldom than weekly if daily determination of deposit amount required is not feasible. Subject to the terms of this Agreement, the proceeds of the Depository Account shall be used for payments as directed by the Company. It is acknowledged and agreed that any investment income earned and costs assessed in connection with the Depository Account belong to the Company. Only the Depository Account, the Disbursement Account, or the Claim Account shall be used for all payments on behalf of the insurer.
Depository Account. To create and maintain a depository account in the name of Group with a banking institution selected by Manager (the "Account"). Group agrees to designate Manager as the sole party authorized to make withdrawals from the Account, which designation may be changed only by written notice to said institution, executed by both Group and Manager; withdrawals from the Account shall be made only in accordance with the terms of Sections 1.12, 2.15 or 3.1.4 of this Management Agreement.
Depository Account. 7.14.1 Borrower shall maintain an operating and other depository account (the “Depository Account”) with KeyBank, National Association (or any successor thereto), unless otherwise agreed by Administrative Agent in writing.
7.14.2 Administrative Agent is hereby authorized, on or after the due date, to charge such Depository Account of Borrower with the amount of all payments due under this Agreement, the Note or the other Loan Documents, with the Borrower’s obligation to make any required payment being satisfied to the extent there are sufficient collected funds in the Depository Account in the amount of such payment.
Depository Account. Each Borrower will maintain its principal operating accounts with one or more of the Lenders (including BBH&Co).
Depository Account. In order to facilitate the administration of the Loans and Lender’s security interest in the Loan Parties’ assets, the Borrowers shall work with the Lender (at the sole expense of the Borrowers) to open and maintain a depository bank account (the “Cash Collateral Account”) in the name of the Lender and under the sole and exclusive dominion and control of the Lender) for deposits of cash collateral. The Borrowers may deliver amounts to Lender for deposit in such Cash Collateral Account from time to time (it being understood that the Borrowers are under no obligation to do so, except as required pursuant to Section 6.11). It is hereby agreed and acknowledged that the Lender may apply any amounts of cash collateral deposited in the Cash Collateral Account to the payment of Obligations due and payable hereunder without the consent of or prior notice to the Borrowers. The Lead Borrower may request that the Lender release amounts from the Cash Collateral Account, subject to the following conditions: (i) no more than one (1) request for release shall be sent per week, (ii) on each of the date of such request and the date of the requested disbursement, there shall be no Default or Event of Default that has occurred and is continuing or would occur as a result of the requested disbursement, (iii) after giving effect to the release of such amounts, the Outstanding Amount shall not exceed the Loan Cap.
Depository Account. Account opened and maintained by Manager in Owner’s name with an FDIC-insured bank designated by Manager and approved by Owner into which deposits and from which disbursements are to be made pursuant to this Agreement.