Common use of Draw on Letter of Credit Clause in Contracts

Draw on Letter of Credit. If Borrower does not provide an amendment to, or replacement of, the Letter of Credit when required pursuant to paragraph (1) above or provide the amount of cash referenced in paragraph (1) above or the long-term obligations of the LOC Bank are downgraded as set forth in Section 6.15(b)(iii) of this Agreement, Xxxxxx Mae shall draw the full amount of the Letter of Credit and hold the funds in escrow pursuant to Section 7(b) of the Security Instrument.

Draw on Letter of Credit. If Borrower does not provide an amendment to, or replacement of, the Letter of Credit when required pursuant to paragraph (1) above or provide the amount of cash referenced in paragraph (1) above or the long-term obligations of the LOC Bank are downgraded as set forth in Section 6.15(b)(iii) of this Agreement, Xxxxxx Mae Xxx shall draw the full amount of the Letter of Credit and hold and apply the funds in escrow pursuant to Section 7(b) of the Security Instrumentproceeds as permitted hereunder.

Draw on Letter of Credit. If Borrower does not provide an amendment to, or replacement of, the Letter of Credit when required pursuant to paragraph (1) above or provide the amount of cash referenced in paragraph (1) above or the long-term obligations of the LOC Bank are downgraded as set forth in Section 6.15(b)(iii) of this Agreement, Xxxxxx Mae shall draw the full amount of the Letter of Credit and hold and apply the funds in escrow pursuant to Section 7(b) of the Security Instrumentproceeds as permitted hereunder.