Common use of Collateral for Undrawn Letters of Credit Clause in Contracts

Collateral for Undrawn Letters of Credit. When any Event of Default, other than an Event of Default described in subsection (j) or (k) of Section 9.1 with respect to the Borrower, has occurred and is continuing, the Borrower shall, upon demand of the Bank, and when any Event of Default described in subsection (j) or (k) of Section 9.1 with respect to the Borrower has occurred, the Borrower shall, without notice or demand from the Bank, immediately pay to the Bank the full amount of each Letter of Credit then outstanding, the Borrower agreeing to immediately make such payment and acknowledging and agreeing that the Bank would not have an adequate remedy at law for failure of the Borrower to honor any such demand and that the Bank shall have the right to require the Borrower to specifically perform such undertaking whether or not any draws have been made under any such Letters of Credit.

Collateral for Undrawn Letters of Credit. When If and when (x) any Event of Default, other than an Event of Default described in subsection subsections (i) or (j) or (k) of Section 9.1 with respect to the Borrower9.1, has occurred and is continuing, the Borrower shall, upon demand of the BankIssuer, and when (y) any Event of Default described in subsection subsections (ji) or (kj) of Section 9.1 with respect to the Borrower has occurred, the Borrower shall, without notice or demand from the BankIssuer, immediately pay to the Bank Issuer the full amount of each Letter of Credit then outstandingto be held by it as a security for the Obligations, the Borrower agreeing to immediately make each such payment and acknowledging and agreeing that the Bank Issuer would not have an adequate remedy at law for failure of the Borrower to honor any such demand and that the Bank Issuer shall have the right to require the Borrower to specifically perform such undertaking whether or not any draws have had been made under any such the Letters of Credit.