Common use of Reserve Deposit Clause in Contracts

Reserve Deposit. Concurrently with the request for a Revolving Loan, the Borrower shall deposit an amount equal to ten percent (10%) of the requested Revolving Loan (the “Reserve Amount”) in a segregated deposit account with the Bank (the “Reserve Account”). All amounts on deposit in the Reserve Account shall serve as additional Collateral for the Loans. The Borrower shall use the funds in the Reserve Account as a last option to make payment of the Obligations, in whole or in part, as necessary. If the Borrower shall fail to do so, the Bank has the option to use funds in the Reserve Account for payment of the Obligations. If the Borrower shall have repaid all Obligations with respect to a given Revolving Loan (which, for purposes of this Section 3.6, shall require the repayment of all Obligations with respect to any Term Loan into which such Revolving Loan has been converted), the Bank shall promptly, upon written request to do so by the Borrower, remit the Reserve Amount with respect to such Revolving Loan to the Borrower. Funds remaining in the Reserve Account on the Term Loan Facility Termination Date will be promptly returned to the Borrower after all Obligations to the Bank have been indefeasibly paid to the Bank in full.

Reserve Deposit. Concurrently with the request for a Revolving Loan, the Borrower shall deposit an amount equal to ten percent (10%) of the requested Revolving Loan (the “Reserve Amount”) in a segregated deposit account with the Bank (the “Reserve Account”). All amounts on deposit in the Reserve Account shall serve as additional Collateral for the Loans. The Borrower or Guarantor shall use the funds in the Reserve Account funds as a last option to make payment of the Obligations, in whole or in part, as necessary. If the Borrower or Guarantor shall fail to do so, the Bank has the option to use funds in the Reserve Account funds for payment of the Obligations. If the Borrower shall have repaid all Obligations with respect to a given Revolving Loan (which, for purposes of this Section 3.6, shall require the repayment of all Obligations with respect to any Term Loan into which such Revolving Loan has been converted), the Bank shall promptly, upon written request to do so by the Borrower, remit the Reserve Amount with respect to such Revolving Loan to the Borrower. Funds remaining in the Reserve Account funds remaining on the Term Loan Facility Termination Date will be promptly returned to the Borrower after all Obligations to the Bank have been indefeasibly paid to the Bank in full.