Common use of Amounts Held for Contingent Obligations Clause in Contracts

Amounts Held for Contingent Obligations. In the event any Credit Party shall be entitled to receive distributions from the Guarantee Collection Account of any moneys in respect of any unliquidated, unmatured or contingent portion of the outstanding Borrower Obligations of such Credit Party, then the Subordinated Guarantee Agent shall, at the written direction of the Required Directing Credit Parties and subject to Section 6.4, separate such moneys into a separate account to be opened by the Required Directing Credit Parties for the benefit of the applicable Credit Party and shall, at the written direction of such Credit Party, invest such moneys in obligations of the kinds referred to in Section 6.1(c) maturing within three months after they are acquired by the Subordinated Guarantee Agent and shall hold all such amounts so distributable, and all such investments and the net proceeds thereof, in trust solely for such Credit Party and for no other purpose until (i) such Credit Party shall have notified the Subordinated Guarantee Agent that all or part of such unliquidated, unmatured or contingent claim shall have become matured or fixed, in which case the Subordinated Guarantee Agent shall distribute from such investments and the proceeds thereof an amount equal to such matured or fixed claim to such Credit Party for application to the payment of such matured or fixed claim, and shall promptly give notice thereof to the Guarantors or (ii) all or part of such unliquidated, unmatured or contingent claim shall have been extinguished, whether as the result of an expiration without drawing of any letter of credit, payment of amounts secured or covered by any letter of credit other than by drawing thereunder, payment of amounts covered by any guarantee or otherwise, in which case (x) such Credit Party shall, as soon as practicable thereafter, notify the Guarantors and the Subordinated Guarantee Agent in writing and (y) such investments, and the proceeds thereof, shall be held in the Guarantee Collection Account in trust for all applicable Credit Parties pending application in accordance with the provisions of Section 6.2.