Common use of Use of Cash Collateral Clause in Contracts

Use of Cash Collateral. Prior to the Forbearance Date, absent a Forbearance Default under this Agreement, Lender will permit a portion of Collections, in such amounts as determined by Lender in its good faith discretion from time to time, to be used by the Loan Parties for Approved Expenses necessary to continue the operations of the same and in accordance with the terms of this Agreement. The Loan Parties shall provide expense reconciliations on the last Business Day of the month for expenses incurred in the immediately prior month, and may request, subject to the approval of Lender in its good faith discretion, amounts in excess of the budgeted amount for anticipated operating expenses. If such reconciliation indicates that monthly expenses were less than the budgeted amount, the difference between the actual expenses and the budgeted amount shall be returned to Lender or retained and applied against the next month’s expenses, in Lender’s sole discretion. Lender shall have no obligation to advance any sums pursuant to this Agreement at any time when a set of facts or circumstances exist, which, by themselves, upon the giving of notice, the lapse of time, or any one or more of the foregoing would constitute a Forbearance Default.