Common use of Escrow Procedure Clause in Contracts

Escrow Procedure. (1) In the event that there is a Projected Overage for a Salary Cap Year, the following shall apply (subject to subsection (e) below regarding final reconciliation): (i) The Cash Compensation otherwise payable to each Adjustment Player shall be reduced by the Escrow Amount applicable to such Adjustment Player; and (ii) Each Team shall deposit the Escrow Amount with respect to each of its Adjustment Players with the Escrow Agent. (2) Except as set forth in subsection (d)(4) below, the Escrow Amount for each Adjustment Player shall be collected through seven (7) equal installments from each of the player’s semi-monthly Cash Compensation payments on each Deduction Date. (3) The procedure for deducting and depositing Escrow Amounts shall be as follows: (i) The NBA will prepare and send to the Players Association the Escrow Schedules on or before December 15 of each Salary Cap Year in which there is a Projected Overage, and periodically thereafter to reflect any new or adjusted Escrow Amounts calculated in accordance with subsection (d)(4) below. (ii) Within three (3) business days after each Deduction Date, each Team shall deliver to the Escrow Agent, in accordance with the Salary Escrow Agreement, the aggregate amount that the Team is obligated to deduct with respect to such Deduction Date for all of its Adjustment Players. All amounts received by the Escrow Agent shall be invested and disbursed in accordance with the provisions of the Salary Escrow Agreement.