Common use of DEPOSIT; PERFORMANCE LETTER OF CREDIT Clause in Contracts

DEPOSIT; PERFORMANCE LETTER OF CREDIT. 2.2.1 On or before the first Business Day following the Effective Date (the “Initial Deposit Due Date”), Developer shall deliver to the District a letter of credit in accordance with the Form Letter of Credit, or deposit with the Settlement Agent an xxxxxxx money deposit in the amount of Dollars ($00), which amount is ten percent (10%) of the Purchase Price (the “Initial Deposit”). If the Initial Deposit is in the form of a letter of credit (the “Deposit Letter of Credit”), the Deposit Letter of Credit shall not constitute payment on account of and shall not be credited against the Purchase Price; rather, the Deposit Letter of Credit shall be used as security to ensure Developer’s compliance with this Agreement and may be drawn on by District in accordance with the terms hereof. If the Initial Deposit is in the form of an xxxxxxx money deposit (the “Cash Deposit”), the Cash Deposit along with any accrued interest shall be credited against the Purchase Price if Closing shall take place in accordance with this Agreement. Any Cash Deposit shall be held in escrow by the Settlement Agent.

DEPOSIT; PERFORMANCE LETTER OF CREDIT. 2.2.1 On or before the first Business Day following the Effective Date (the “Initial Deposit Due Date”), Developer shall deliver to the District a letter of credit in accordance with the Form Letter of Credit, or deposit with the Settlement Agent an xxxxxxx money deposit in the amount of Dollars ($00), which amount is ten percent (10%) of the Purchase Price Assessed value of the Property (the “Initial Deposit”). If the Initial Deposit is in the form of a letter of credit (the “Deposit Letter of Credit”), the Deposit Letter of Credit shall not constitute payment on account of and shall not be credited against the Purchase Price; rather, the Deposit Letter of Credit shall be used as security to ensure Developer’s compliance with this Agreement and may be drawn on by District in accordance with the terms hereof. If the Initial Deposit is in the form of an xxxxxxx money deposit (the “Cash Deposit”), the Cash Deposit along with any accrued interest shall be credited against the Purchase Price if Closing shall take place in accordance with this Agreement. Any Cash Deposit shall be held in escrow by the Settlement Agent.