Common use of PURCHASE PRICE OF THE PROPERTY Clause in Contracts

PURCHASE PRICE OF THE PROPERTY. (a) The purchase price of the Property shall be $21,950,000.00 (“Purchase Price”). (b) The Purchase Price shall be payable as follows: (i) Within two (2) business days after the Opening of Escrow, Buyer shall deliver to Escrow Holder an irrevocable standby letter of credit in the form of Exhibit “I” attached hereto in the amount of $500,000.00 (“Deposit”), issued by ▇▇▇▇▇ Fargo Bank, N.A. naming Escrow Holder as the beneficiary thereof for the benefit of Seller, which shall be held and administered in accordance with the provisions of this Agreement (“Letter of Credit”). (ii) If Buyer delivers the Notice of Proceed pursuant to Section 4(c), then within three (3) business days after such delivery, Buyer shall deposit with Escrow Holder the amount of the Deposit in immediately available U.S. federal funds. Upon the receipt of such funds, Escrow Holder is instructed to return the Letter of Credit to Buyer. If Buyer fails so to deliver immediately available U.S. federal funds pursuant to this Section, then Escrow Holder shall be entitled to draw on the Letter of Credit, and is instructed to draw on the Letter of Credit, and the proceeds of the Letter of Credit shall be held and applied as the Deposit pursuant to this Agreement. As used in this Agreement, the term “Deposit” shall include any interest earned on the Deposit. The Deposit shall be applicable to the Purchase Price at the Close of Escrow. Upon expiration of the Due Diligence Period, the Deposit will be nonrefundable to Buyer except as provided in Section 4(d). (iii) On the day before the Closing Date (as defined in Section 5(b)), Buyer shall deliver into escrow immediately available U.S. federal funds in an amount equal to the remainder of the Purchase Price, plus or minus any adjustments for prorations and expenses required under Sections 5 and 6. Seller discloses that closing funds are required to be delivered to Escrow Holder the day before the Closing Date so that Seller may effect the required defeasance of Seller’s existing loan at the Closing. (c) At the request of Buyer, all funds received from or for the account of Buyer shall be deposited by Escrow Holder in an interest-bearing account with a federally insured state or national bank having a branch located in California.