Use of Advance. The Advance shall be deposited in the Borrower Account. Borrower shall then use the funds thus deposited to pay closing costs associated with the closing of the Credit Facility and to contribute funds to Ark Real Estate to be used by Ark Real Estate to purchase the Real Property Assets pursuant to the Ark Real Estate Purchase Agreement, to Ark Shuckers to be used by Ark Shuckers to purchase the Restaurant Assets pursuant to the Ark Shuckers Purchase Agreement, and to Ark Island to be used by Ark Island to purchase the Property Management Assets pursuant to the Ark Island Purchase Agreement. Borrower shall ensure that the funds thus contributed are used by Ark Real Estate, Ark Shuckers and Ark Island for the purposes specified herein. Borrower may request that the portion of the Advance constituting contributions of funds to Ark Real Estate, Ark Shuckers and Ark Island be advanced directly to Ark Real Estate, Ark Shuckers and Ark Island to facilitate the closing on the purchase of the Real Estate Assets, the Restaurant Assets and the Property Management Assets. Borrower represents and warrants to Bank that notwithstanding any advance of any portion of the Advance by Bank directly to Ark Real Estate, Ark Shuckers and/or Ark Island, if Bank elects to do so, Borrower shall be deemed to have received that portion of the proceeds of the Advance made directly to Ark Real Estate, Ark Shuckers and/or Ark Island and that such portion of the proceeds of the Advance shall be evidenced by and shall constitute outstanding principal under the Note for all purposes of the Note and this Agreement.
Appears in 2 contracts
Sources: Credit Agreement, Credit Agreement (Ark Restaurants Corp)