SEVEN. The Owner shall establish a separate Operating Account, in the name of the Development, in a bank whose deposits are insured by the FDIC for the deposit of all the monies received on behalf of the Development. Said Operating Account shall be used to make payments to discharge the liabilities or obligations of the Development and those liabilities or obligations incurred by the Owner pursuant to this Agreement. Checks drawn on the Operating Account in excess of $1,000 shall require no less than two (2) signatures. Signatories to the Operating Account shall be approved by the Owners and their names made known to the NJHMFA. The NJHMFA must be promptly advised of any changes in signatories. EIGHT: A separate special bank account for tenants' security deposits shall be opened and operated pursuant to New Jersey State Laws. The security account must be kept in a bank that will provide individual accounts with computer reporting of the account and issue all 1099 and other required documents in accordance with the Management Manual and New Jersey State Laws. Persons entitled to make withdrawals from this account shall be those persons authorized by the Owner to act as signatories to the Operating Account in accordance with section SEVEN above. All deposits made to this account must be made within thirty (30) days of receipt from the tenant. Further, when a tenant gives notice of intent to vacate the Development, a full accounting of any refunds due and the issuance of a refund check, if any, in the appropriate amount, must be made within thirty (30) days of the tenants vacating the unit. Any penalties imposed on the Development or Owner for the failure to comply with the laws and regulations governing the maintenance of Tenants' Security Deposit Accounts shall be the sole responsibility of the Owner. NINE:
Appears in 3 contracts
Sources: Self Management Agreement, Self Management Agreement, Self Management Agreement