Common use of Application of L/C Proceeds Clause in Contracts

Application of L/C Proceeds. Lessor may elect, from time to time, upon written notice to Lessee, in Lessor’s sole discretion, to apply the proceeds it receives from a draw on the L/C in one or more of the following manners without prejudice to any other remedies: (i) as payment for some or all of the rent or other amounts owed by Lessee under the Lease but unpaid on the date of such draw, (ii) as payment for some or all of the future amounts of rent or other amounts that Lessor estimates will be due and payable under the Lease after the date of the draw, (iii) as payment for some or all of the damage Lessor may suffer as a result of Lessee’s failure to perform its obligations under the Lease, (iv) as collateral for obligations of Lessee under the Lease, and/or (v) in any other manner permitted by the Lease or applicable law. Lessor may make one or more partial draws under the L/C and shall have the right, upon written notice to Lessee, to treat each draw or a portion thereof in one or more of the ways described in the previous sentence. Lessee hereby waives any other law or regulation that may be inconsistent with the terms and conditions of this section.

Application of L/C Proceeds. Lessor Landlord may elect, from time to time, upon written notice to LesseeTenant, in LessorLandlord’s sole discretion, to apply the proceeds it receives from a draw on the L/C in one or more of the following manners without prejudice to any other remedies: (i) as payment for some or all of the rent or other amounts due and owed by Lessee Tenant under the Lease but unpaid on the date of such draw, (ii) as payment for some or all of the future amounts of rent or other amounts that Lessor estimates will be due and payable by Tenant to Landlord under the Lease after the date of the drawdraw which are not paid as and when due, (iii) as payment for some or all of the damage Lessor reasonable, out-of-pocket costs Landlord may suffer incur as a result of LesseeTenant’s failure to perform its obligations under the Lease, (iv) as collateral for lease obligations of Lessee under the LeaseTenant, and/or (v) in any other manner permitted by the Lease or applicable law. Lessor Landlord may make one or more partial draws under the L/C and shall have the right, upon written notice to LesseeTenant, to treat each draw or a portion thereof in one or more of the ways described in the previous sentence. Lessee Tenant hereby waives any other law or regulation that may be inconsistent with the terms and conditions of this section.