Common use of Lockbox Procedures Clause in Contracts

Lockbox Procedures. (a) In the event that either (i) the Tangible Net Worth of CCC is less than two hundred percent (200%) of the amount of the maximum liability under the Guarantee from time to time as of the end of each of three (3) consecutive Accounting Periods, or (ii) the Consolidated Coverage Ratio of CCC is less than 2.3 to 1.0 for each of three (3) consecutive Accounting Periods, or (iii) there is an Event of Default under Section 12.1(a)(i), 12.1(c) (by reason of a breach of Section 7.1 or 21.6.3), 12.1(f), 12.1(g), 12.1(h), 12.1(i), 12.1(k), or 12.1(m) of this Lease, or (iv) there is a default continuing beyond any applicable cure period under Section 12.1(a)(i) or Section 12.1(c) (by reason of a breach of Section 7.1 or 21.6.3) of any Pool Lease (other than this Lease) or any Other Lease with respect to which CCC Limit of Liability under any CCC guarantee applicable to such Other Lease is greater than zero, then, at Landlord's option and upon Notice to Manager and Tenant (the date of such notice, the "LOCKBOX NOTICE DATE"), the procedures set forth in this Section 3.5 shall apply during the period beginning no later than two (2) weeks after the Lockbox Notice Date and continuing thereafter until the first (1st) day of the first (1st) full Accounting Period after (w) the Tangible Net Worth of CCC is at least equal two hundred percent (200%) of the maximum liability under the Guarantee from time to time as of the end of each of three (3) consecutive Accounting Periods, (x) the Consolidated Coverage Ratio of CCC is at least 2.3 to 1.0 for each of three (3) consecutive Accounting Periods, (y) no Event of Default under Section 12.1(a)(i), 12.1(c) (by reason of a breach of Section 7.1 or 21.6.3), 12.1(f), 12.1(g), 12.1(h), 12.1(i), 12.1(k), or 12.1(m) of this Lease has been in effect as of the end of each of three (3) consecutive Accounting Periods, or (z) there has been no default continuing beyond any applicable cure period under Section 12.1(a)(i) or Section 12.1(c) (by reason of a breach of Section 7.1 or 21.6.3) of any Pool Lease (other than this Lease) or any Other Lease with respect to which CCC Limit of Liability under any CCC guarantee applicable to such Other Lease is greater than zero, as of the end of each of three (3) consecutive Accounting Periods (such period, a "LOCKBOX PERIOD"). At any time after the termination of the Guarantee pursuant to Section 10 thereof, a Lockbox Period shall commence pursuant to this subsection (a) only if there is an Event of Default under Section 12.1(a)(i), 12.1(c) (by reason of a breach of Section 7.1 or 21.6.3), 12.1(f), 12.1(g), 12.1(h), 12.1(i), or 12.1(k) of this Lease. (b) Following the Lockbox Notice Date and prior to commencement of the Lockbox Period, Landlord (or, if required by the terms of any Facility Mortgage, any Facility Mortgagee or its agent) shall establish and maintain a cash collateral account at a financial institution mutually acceptable to Landlord and Tenant (the "LOCKBOX ACCOUNT"), as a segregated account in the name of Landlord (or, if applicable, the Facility Mortgagee or its agent), into which all revenues of Tenant due from Manager to Tenant or paid by Landlord to Tenant hereunder that are to be held as security for Tenant's obligations under this Lease shall be deposited. (c) During the Lockbox Period, Manager shall, in accordance with the Consent and Assignment, deposit into the Lockbox Account all amounts required to be paid to Tenant under the Management Agreement and Landlord shall deposit any funds that it is required to pay to Tenant under this Lease directly into the Lockbox Account. During the Lockbox Period, any funds received directly by Tenant and not yet deposited into the Lockbox Account shall irrevocably be deemed to be held in trust pursuant to the terms of this Section 3.5 and shall, immediately upon receipt and identification as belonging to Tenant (and in no event later than one full Business Day after receipt and identification as belonging to Tenant), be deposited by Tenant into the Lockbox Account. (d) During the Lockbox Period, all funds that are received in cash in the Lockbox Account in any Accounting Period shall be disbursed in the following order of priority on the next date on which a scheduled payment of Rent is due: