Common use of Draws for Defaulted Loans Clause in Contracts

Draws for Defaulted Loans. If, on any given day, the Administrative Agent has received a Servicer’s Certificate with respect to a Defaulted Loan with instructions to draw on the Letter of Credit or the Administrative Agent otherwise obtains knowledge of the existence of a Defaulted Loan, the Administrative Agent will draw on the Letter of Credit on such date and if necessary, request the Collateral Agent to withdraw amounts deposited in the Reserve Account on such date in an aggregate amount equal to the lesser of (x) the Series 2000-1 Invested Percentage of the aggregate unpaid principal amount and accrued and unpaid interest (or discount) thereon to and including the day prior to the day the Loan has become a Defaulted Loan (calculated by converting any Defaulted Loans denominated in Approved Currencies other than Dollars into Dollars at the Rate of Exchange) and (y) the Letter of Credit Amount then in effect and shall deposit and apply the draw amount in accordance with subsection 5.05(c) hereof and shall instruct the Collateral Agent to reimburse the Letter of Credit Banks for such draw in accordance with the terms of the Security Agreement; provided that, if the required draw is made pursuant to clause (y) above, the Administrative Agent shall, upon receipt of notice from the Collateral Agent of payment of the Repayment Amount to the Letter of Credit Bank, submit as promptly as practicable a successive draw on the Letter of Credit for the lesser of (i) the amount of such excess principal plus accrued and unpaid interest (or discount) on such Defaulted Loan (calculated by converting any Defaulted Loans denominated in Approved Currencies other than Dollars into Dollars at the Rate of Exchange) over the Letter of Credit Amount prior to giving effect to the first draw or (ii) the entire remaining reinstated Letter of Credit Commitment then available.