Common use of Application of Letter of Credit Proceeds Clause in Contracts

Application of Letter of Credit Proceeds. In the event of a draw upon a Letter of Credit due to the existence of an Event of Default, Lender may apply such amounts in such order and in such amounts as Lender shall elect, in its sole and absolute discretion, to payment of the Debt. In the event of a draw upon a Letter of Credit due to the occurrence of an event described in Section 7.8(b) or (c) above, Lender shall deposit the proceeds of such Letter of Credit into a reserve account designated by Lender and such proceeds shall be held and released in the same manner applicable to the release of the Letter of Credit.

Application of Letter of Credit Proceeds. In the event of a draw upon a Letter of Credit due to the existence of an Event of Default, Lender may apply such amounts in such order and in such amounts as Lender shall elect, in its sole and absolute discretion, to payment of the Debt. In the event of a draw upon a Letter of Credit due to the occurrence of an event described in Section 7.8(b) SECTION 7.7.2 or (c) SECTION 7.7.3 above, Lender shall deposit the proceeds of such Letter of Credit into a reserve account designated by Lender and such proceeds shall be held and released in the same manner applicable to the release of the Letter of Credit.ARTICLE 8 -

Application of Letter of Credit Proceeds. In the event of a draw upon a Letter of Credit due to the existence of an Event of Default, Lender may apply such amounts in such order and in such amounts as Lender shall elect, in its sole and absolute discretion, to payment of the Debt. In the event of a draw upon a Letter of Credit due to the occurrence of an event described in Section 7.8(b7.9(b) or (c) above, Lender shall deposit the proceeds of such Letter of Credit into a reserve account designated by Lender and such proceeds shall be held and released in the same manner applicable to the release of the Letter of Credit.