Common use of Proceeds to be Escrowed Clause in Contracts

Proceeds to be Escrowed. On or before the date the Offering Document is declared effective by the Securities and Exchange Commission, the Company shall establish an escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS OF UNITS OF PREFERRED APARTMENT COMMUNITIES, INC.” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via “Direct Registration Settlement” (as described in the Offering Document)(“Investors”) in payment for the Securities (“Investor Funds”) will be delivered to the Escrow Agent within one business day following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During the term of this Agreement, the Company or its agents shall cause all checks received by and made payable to it for payment for the Securities to be endorsed in favor of the Escrow Agent and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: (a) the close of business on October 11, 2015, or October 11, 2016 if the Offering is extended to such date by the Company; (b) the date all Securities offered pursuant to the Offering Document are sold, (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the Securities; and (d) the date the Escrow Agent receives notice from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained in effect for at least 20 days. The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder.

Proceeds to be Escrowed. On or before the date the Offering Document is declared effective by the Securities and Exchange Commission, the Company shall establish an escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS OF UNITS OF PREFERRED APARTMENT COMMUNITIES, INC.” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via (“Direct Registration Settlement” (as described in the Offering Document)(“InvestorsInvestors”) in payment for the Securities (“Investor Funds”) will be delivered to the Escrow Agent within one business day following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During the term of this Agreement, the Company or its agents shall cause all checks received by and made payable to it for payment for the Securities to be endorsed in favor of the Escrow Agent and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: (a) the close of business on October 11[________], 2015, or October 11[__________], 2016 if the Offering is extended to such date by the Company; (b) the date all Securities offered pursuant to the Offering Document are sold, (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the Securities; and (dc) the date the Escrow Agent receives notice from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained in effect for at least 20 days. The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder.

Proceeds to be Escrowed. On or before the date the Offering Document is declared effective by the Securities and Exchange Commission, the Company shall establish an escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS OF UNITS OF PREFERRED APARTMENT COMMUNITIES, INC.” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via “Direct Registration Settlement” (as described in the Offering Document)(“Investors”) in payment for the Securities (“Investor Funds”) will be delivered to the Escrow Agent within one business day following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During the term of this Agreement, the Company or its agents shall cause all checks received by and made payable to it for payment for the Securities to be endorsed in favor of the Escrow Agent and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: (a) the close of business on October 11[________], 2015, or October 11[__________], 2016 if the Offering is extended to such date by the Company; (b) the date all Securities offered pursuant to the Offering Document are sold, (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the Securities; and (d) the date the Escrow Agent receives notice from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained in effect for at least 20 days. The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder.

Proceeds to be Escrowed. On or before the date the Offering Document is declared effective by the Securities and Exchange Commission, the The Company shall establish has established an interest-bearing escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled titled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS IN COMMON SHARES OF UNITS OF PREFERRED APARTMENT COMMUNITIES, INC.UNITED REALTY TRUST INCORPORATED” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via “Direct Registration Settlement” (Common Shares who reside in any state that has imposed continuing escrow obligations as described in the Offering Document)(“InvestorsDocument (“Restricted State Investors”) in payment for the Securities Common Shares (“Restricted State Investor Funds”) ), along with all documents executed in connection with each Restricted State Investor’s subscription for Common Shares, will be delivered to the Dealer Manager or any soliciting dealer retained by the Dealer Manager (a “Soliciting Dealer”), and the Dealer Manager or such Soliciting Dealer, as applicable, will deliver all Restricted State Investor Funds to the Escrow Agent within one business day following the day upon which time period set forth in the final paragraph of this Section 1, and such Restricted State Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During Until the term of this AgreementTermination Date (as defined in Section 4), the Company or its agents shall cause all checks from Restricted State Investors received by and made payable to it for payment for the Securities Common Shares to be endorsed in favor of payable to the Escrow Agent in accordance with Section 2 and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: (a) the close of business on October 11August 15, 2015, or October 11, 2016 if the Offering is extended to such date by the Company; (b) the date all Securities offered pursuant upon which the Escrow Agent receives confirmation from the Company that the Company is no longer subject to continuing escrow obligations imposed by any state (such date, the Offering Document are sold, “Break Escrow Date”); (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the SecuritiesCommon Shares pursuant to the Offering; and (d) the date the Escrow Agent receives notice from the Securities and Exchange Commission (the “SEC”) or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and that such stop or similar order has remained in effect for at least 20 twenty (20) days. The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Restricted State Investor Funds until and unless it has good and collected funds. If a Restricted State Investor sends a check to the Dealer Manager or a Soliciting Dealer that does not conform to the subscription instructions, the Dealer Manager or Soliciting Dealer, as applicable, shall return the check directly to such Restricted State Investor not later than the end of the next business day after the date on which the Dealer Manager or Soliciting Dealer, as applicable, received such check. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs reasonably incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder. When the internal supervisory procedures of the Dealer Manager or Soliciting Dealer, as applicable, are conducted at the site at which the subscription agreement and check were initially received by the Dealer Manager or Soliciting Dealer, as applicable, from the Restricted State Investor, the Dealer Manager or Soliciting Dealer, as applicable, shall transmit the check to the Escrow Agent by the end of the next business day following receipt of the check and subscription agreement. When, pursuant to the internal supervisory procedures of the Dealer Manager or Soliciting Dealer, as applicable, the final internal supervisory procedures are conducted at a different location (the “Final Review Office”), the Dealer Manager or Soliciting Dealer, as applicable, shall transmit the check and subscription agreement from the Restricted State Investor to the Final Review Office by the end of the next business day following receipt of the subscription agreement and check. The Final Review Office will, by the end of the next business day following its receipt of the subscription agreement and check from the Restricted State Investor, forward the check to the Escrow Agent.

Proceeds to be Escrowed. On or before the date the Offering Document is declared effective by the Securities and Exchange CommissionCommission (the “SEC”), the Company shall establish an escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS OF UNITS OF PREFERRED APARTMENT COMMUNITIES, INC.” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via (“Direct Registration Settlement” (as described in the Offering Document)(“InvestorsInvestors”) in payment for the Securities (“Investor Funds”) will be delivered to the Escrow Agent within one business day following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During the term of this Agreement, the Company or its agents shall cause all checks received by and made payable to it for payment for the Securities to be endorsed in favor of the Escrow Agent and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period (the “Initial Escrow Period”) shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: (a) the close of business on October 11December 31, 2015, or October 11, 2016 if the Offering is extended to such date by the Company2012; (b) the date all Securities offered pursuant to upon which the Offering Document are soldEscrow Agent receives confirmation that the Company has raised the Minimum Amount of at least $2,000,000 of gross offering proceeds (such date, the “Break Escrow Date”); (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the Securities; and (d) the date the Escrow Agent receives notice from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained in effect for at least 20 days. The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder.

Proceeds to be Escrowed. On or before the date the Offering Document is declared effective by the Securities and Exchange Commission, the Company shall establish an escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS OF UNITS OF PREFERRED APARTMENT COMMUNITIES, INC.” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via (“Direct Registration Settlement” (as described in the Offering Document)(“InvestorsInvestors”) in payment for the Securities (“Investor Funds”) will be delivered to the Escrow Agent within one business day following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During the term of this Agreement, the Company or its agents shall cause all checks received by and made payable to it for payment for the Securities to be endorsed in favor of the Escrow Agent and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: (a) the close of business on October 11December 31, 2015, or October 11, 2016 if the Offering is extended to such date by the Company2012; (b) the date all Securities offered pursuant to upon which the Offering Document are soldEscrow Agent receives confirmation that the Company has raised the Minimum Amount of at least $2,000,000 of gross offering proceeds (such date, the “Break Escrow Date”); (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the Securities; and (d) the date the Escrow Agent receives notice from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained in effect for at least 20 days. The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder.

Proceeds to be Escrowed. On or before the date the Offering Document is initially declared effective by the Securities and Exchange CommissionCommission (the “SEC”), the Company shall establish an interest-bearing escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled titled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS IN COMMON SHARES OF UNITS OF PREFERRED APARTMENT COMMUNITIES, INC.UNITED REALTY TRUST INCORPORATED” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via Common Shares (“Direct Registration Settlement” (as described in the Offering Document)(“InvestorsInvestors”) in payment for the Securities Common Shares (“Investor Funds”) will be delivered to the Escrow Agent within one two (2) business day days following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During Until the term of this AgreementTermination Date (as defined in Section 4), the Company or its agents shall cause all checks received by and made payable to it for payment for the Securities Common Shares to be endorsed in favor of payable to the Escrow Agent in accordance with Section 2 and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: (a) the close of business on October 11____________, 2015, or October 11, 2016 if the Offering is extended to such date by the Company2013; (b) the date all Securities offered pursuant to upon which the Offering Document are soldEscrow Agent receives confirmation from the Company that the Company has raised the Minimum Amount of at least $2,090,000 of gross offering proceeds (such date, the “Break Escrow Date”); (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the SecuritiesCommon Shares pursuant to the Offering; and (d) the date the Escrow Agent receives notice from the Securities and Exchange Commission SEC or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and that such stop or similar order has remained in effect for at least 20 twenty (20) days. The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs reasonably incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder.

Proceeds to be Escrowed. On or before the date the Offering Document is initially declared effective by the Securities and Exchange CommissionCommission (the “SEC”), the Company shall establish an interest-bearing escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled titled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS IN COMMON SHARES OF UNITS OF PREFERRED APARTMENT COMMUNITIES, INC.UNITED REALTY TRUST INCORPORATED” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via Common Shares (“Direct Registration Settlement” (as described in the Offering Document)(“InvestorsInvestors”) in payment for the Securities Common Shares (“Investor Funds”) ), along with all documents executed in connection with each subscription of Common Shares, will be delivered to the Dealer Manager or any soliciting dealer retained by the Dealer Manager (a “Soliciting Dealer”), and the Dealer Manager or such Soliciting Dealer, as applicable, will deliver all Investor Funds to the Escrow Agent within one business day following the day upon which time period set forth in the final paragraph of this Section 1, and such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During Until the term of this AgreementTermination Date (as defined in Section 4), the Company or its agents shall cause all checks received by and made payable to it for payment for the Securities Common Shares to be endorsed in favor of payable to the Escrow Agent in accordance with Section 2 and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: (a) the close of business on October 11____________, 2015, or October 11, 2016 if the Offering is extended to such date by the Company2013; (b) the date all Securities offered pursuant to upon which the Offering Document are soldEscrow Agent receives confirmation from the Company that the Company has raised the Minimum Amount of at least $2,090,000 of gross offering proceeds (such date, the “Break Escrow Date”); (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the SecuritiesCommon Shares pursuant to the Offering; and (d) the date the Escrow Agent receives notice from the Securities and Exchange Commission SEC or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and that such stop or similar order has remained in effect for at least 20 twenty (20) days. The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If an Investor sends a check to the Dealer Manager or a Soliciting Dealer that does not conform to the subscription instructions, the Dealer Manager or Soliciting Dealer, as applicable, shall return the check directly to such Investor not later than the end of the next business day after the date on which the Dealer Manager or Soliciting Dealer, as applicable, received such check. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs reasonably incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder. When the internal supervisory procedures of the Dealer Manager or Soliciting Dealer, as applicable, are conducted at the site at which the subscription agreement and check were initially received by the Dealer Manager or Soliciting Dealer, as applicable, from the subscriber, the Dealer Manager or Soliciting Dealer, as applicable, shall transmit the check to the Escrow Agent by the end of the next business day following receipt of the check and subscription agreement. When, pursuant to the internal supervisory procedures of the Dealer Manager or Soliciting Dealer, as applicable, the final internal supervisory procedures are conducted at a different location (the “Final Review Office”), the Dealer Manager or Soliciting Dealer, as applicable, shall transmit the check and subscription agreement to the Final Review Office by the end of the next business day following receipt of the subscription agreement and check. The Final Review Office will, by the end of the next business day following its receipt of the subscription agreement and check, forward the check to the Escrow Agent.

Proceeds to be Escrowed. On or before the date the Offering Document is declared effective qualified by the Securities and Exchange Commission, subject to the Escrow Agent’s prior receipt of all required documentation necessary to comply with the Bank Secrecy Act, the Company shall establish an escrow account with the Escrow Agent to be invested in accordance with Section 7 entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS OF UNITS BONDS OF PREFERRED APARTMENT COMMUNITIESTHE GLADSTONE COMPANIES, INC.” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities via “Direct Registration Settlement” (as described in the Offering Document)(“InvestorsDocument) (“Investors”) in payment for the Securities (“Investor Funds”) will be delivered to the Escrow Agent within one business day following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent. During the term of this Agreement, the Company or its agents shall cause all checks received by and made payable to it for payment for the Securities to be endorsed in favor of the Escrow Agent and delivered to the Escrow Agent for deposit in the Escrow Account. The initial escrow period shall commence upon the effectiveness of this Agreement and shall continue until the earliest to occur of: Termination Date (a) the close of business on October 11, 2015, or October 11, 2016 if the Offering is extended to such date by the Company; (b) the date all Securities offered pursuant to the Offering Document are sold, (c) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the Securities; and (d) the date the Escrow Agent receives notice from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained as defined in effect for at least 20 daysSection 4). The Escrow Account shall not be an interest-bearing account. The Escrow Agent shall have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder.