Owner’s First Priority Sample Clauses
The "Owner’s First Priority" clause establishes that the owner's interests or claims take precedence over those of other parties, such as lenders, contractors, or subcontractors, in relation to the project or property. In practice, this means that if there are competing claims to project funds, insurance proceeds, or property rights, the owner's rights will be satisfied before others. This clause is commonly used in construction or financing agreements to ensure that the owner maintains control and priority over key assets or payments. Its core function is to protect the owner's position and minimize the risk of losing priority to third parties, thereby providing clarity and security regarding the order of claims.
Owner’s First Priority. Owner’s First Priority shall be due and payable in advance in equal monthly installments on the first day of each Fiscal Month, pro-rated for any partial month, regardless of any inadequacy of Gross Revenues or Operating Profits. If any installment of Owner’s First Priority is not paid when due, the same shall accrue interest at the Interest Rate. (Such interest shall be payable on demand, shall not be an Operating Cost, and shall be paid by Manager.) Appropriate adjustments shall be made to reflect any change in Owner’s First Priority on account of advances made pursuant to SECTIONS 5.2(c) or 15.2 by Owner or Purchaser when such advances are made, provided any additional amounts of Owner’s First Priority due by reason of any such advance for the month in which such advance is made shall not be due and payable until the first Business Day of the month next after the date as of which such change occurs. As installments of Owner’s First Priority are to be paid in advance, Manager may advance amounts due on account of a monthly installment of Owner’s First Priority for a Fiscal Month and reimburse itself from Operating Profits for such Fiscal Month the amounts so advanced; PROVIDED, HOWEVER, if Operating Profits of all of the Hotels for such Fiscal Month in excess of the amount to be contributed to the Reserve Account pursuant to SECTION 5.2 are insufficient to make such reimbursements, the amount of such insufficiency shall be deemed an advance under the PR Guaranty to the extent any amount is owed thereunder and then an advance to Working Capital, and Manager shall be entitled to the reimbursement thereof only pursuant to SECTION 10.1(k); PROVIDED, HOWEVER, unless such advance is deemed an advance under the PR Guaranty, by notice given to Owner within thirty (30) days after the end of such Fiscal Month, Manager may elect to deem the amount of such insufficiency an advance under the Guaranty (and not an advance to Working Capital). If Manager shall so make such election, the amount of such insufficiency shall be reimbursed to the Guarantor as provided in SECTION 10.1(l). If Owner fails to receive any installment of Owner’s First Priority as and when due, Owner may terminate this Agreement on not less than thirty (30) days’ notice; PROVIDED, HOWEVER, such notice shall be void AB INITIO if such installment together with any interest accrued thereon is paid to Owner prior to the thirtieth (30th) day after such notice is given.
Owner’s First Priority. The following is added to the defined term “Owner’s First Priority” as an additional sentence: “Owner’s First Priority shall not reflect or be adjusted pursuant to any provisions of this Agreement on account of any amount representing Owner’s Pool B Base Priority or other amounts advanced by Owner in connection with or related to a Pool B Hotel. Instead of any adjustment to Owner’s First Priority, Owner’s Pool B Priority shall be based on the Owner’s Pool B Base Priority and adjusted by such amounts.”