The Agency Account. Operator shall establish, in Operator’s name as agent for Owner and under the control of Operator as hereinafter set forth, a special account or accounts in such federally insured banks, savings and loans or trust companies as may be designated from time to time by Owner (the “Agency Account”). Owner shall deposit into the Agency Account sufficient working capital on an as-needed basis to pay all Operating Expenses and other amounts which are the responsibility of Operator to pay under this Agreement (including without limitation any Fixed Charges and debt service, ground rent and capital costs with respect to the Hotel which Owner may have designated Operator to pay from the Agency Account) (collectively, “Operator Paid Amounts”). From the Agency Account, Operator shall pay all Operating Expenses and other Operator Paid Amounts required to be paid by Operator on Owner’s behalf under this Agreement (to the extent, in each case, such amounts are permitted or required to be paid under this Agreement). Interest on the Agency Account shall accrue to the benefit of Owner but shall be available to pay any Operator Paid Amounts. Checks or other documents of withdrawal from the Agency Account shall be signed only by representatives of Operator, provided that such representatives shall be bonded or otherwise insured in a manner reasonably satisfactory to Owner. The identity of such authorized representatives shall be disclosed to Owner from time to time. The premiums for bonding or other insurance shall be an Operating Expense except for premiums for bonding off-site executive employees of Operator. Upon the expiration or termination of this Agreement all remaining amounts in the Agency Account shall be transferred to Owner.
The Agency Account. Operator shall establish, in Operator's name as agent for Owner and under the control of Operator as hereinafter set forth, an Agency Account in such federally insured banks, savings and loans or trust companies as may be selected by Operator and reasonably approved by Owner and/or any lender under a mortgage loan. Owner shall deposit into the Agency Account the Minimum Working Capital and additional working capital funds, in accordance with Section 7.1. To the extent funds are currently available in the Agency Account, Operator shall pay all Operating Expenses and Fixed Charges on behalf of Owner from the Agency Account. Upon Owner’s written request and direction, Operator shall pay on behalf of Owner from the Agency Account (but only to the extent that such funds are available in the Agency Account following the payment of all Operating Expenses and Fixed Charges), such other Owner Expenses as may be requested by Owner; provided, however, Operator will not be required to pay such Owner Expenses until Operator receives Owner’s Expense Notice. Owner agrees to provide Owner’s Expense Notice at least thirty (30) days prior to the date on which the first payment by Operator is due, and such Owner’s Expense Notice shall only be revocable upon thirty (30) days prior written notice from Owner. Operator’s payment of any Owner Expense shall be subject to a supplemental accounting fee as may be mutually agreed to by Owner and Operator. Operator shall provide Owner with “read-only” access to the Agency Account.
