Excess Cash Collateral Clause Samples
The Excess Cash Collateral clause defines how any collateral provided by a party that exceeds the required amount is handled. In practice, this clause specifies the procedures for identifying, segregating, and potentially returning or reallocating surplus collateral, such as cash held in margin accounts or escrow. Its core function is to ensure that parties do not unnecessarily tie up funds beyond what is contractually required, thereby promoting efficient use of capital and reducing the risk of disputes over excess amounts held.
Excess Cash Collateral. Subject to Section 8.4, unless a Default or an Event of Default has occurred and is continuing, if the amount on deposit with the Administrative Agent designated for, or intended to be used for, the purpose of cash collateralizing the Letter of Credit Outstandings is in excess of the Letter of Credit Outstandings at such time and would not otherwise be required to be deposited under Section 3.2.1(b)(B), Section 8.2, Section 8.3, or Section 8.4 (the amount of any such excess is referred to herein as the “Excess Cash Collateral”), the Administrative Agent shall promptly return to the Borrower the Excess Cash Collateral.
Excess Cash Collateral. If at any time the balance in the L/C Cash Collateral Account exceeds 105% of the aggregate then undrawn amount of the outstanding Letters of Credit, then such excess amounts shall be returned to the Borrower within ten Business Days of the date on which such excess arose. AMENDED AND RESTATED
Excess Cash Collateral. At any time that the then-current aggregate balance of the Collateral consisting of cash exceeds the then-current undrawn amount of the Credit, upon the receipt by Bank of a written refund request from Applicant, Bank shall return to Applicant a portion of such cash Collateral in an amount not to exceed an amount equal to such excess.” Except as expressly amended and modified by this Agreement, each Letter of Credit Agreement shall continue to be, and shall remain, in full force and effect in accordance with their respective terms.