Guaranty or Letter of Credit in Lieu of Cash Deposit. (a) In lieu of making cash deposits of Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds, Borrower may deliver to Lender one or more of the following: (i) a guaranty from Guarantor in form and substance reasonably acceptable to Lender (a “Reserve Guaranty”) or (ii) a Letter of Credit in accordance with the provisions of this Section 6.12. Borrower shall be responsible for the payment of all reasonable out-of-pocket costs and expenses incurred by the Servicer in the administration of any Letter of Credit or Reserve Guaranty delivered pursuant to this Section 6.12. (b) In the event Borrower elects to deliver a Letter of Credit in lieu of making cash deposits of Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds, the aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds shall at all times be at least equal to the aggregate amount which Borrower is required to have on deposit in such Reserve Fund(s) pursuant to this Agreement. The aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Tax Funds shall at all times be at least equal to the aggregate which Borrower would be required to deposit in such Reserve Fund over the next twelve (12) month period. The aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Insurance Funds shall at all times be at least equal to the aggregate which Borrower would be required to deposit in such Reserve Fund over the next twelve (12) month period. In the event that a Letter of Credit and/or Reserve Guaranty is delivered in lieu of any portion of the Tax Funds or the Insurance Funds, Borrower shall be responsible for the payment of Taxes or Insurance Premiums, as applicable, and Lender shall not be responsible therefor. (c) Borrower shall give Lender no less than thirty (30) days notice of Borrower’s election to deliver a Letter of Credit pursuant to this Section 6.12 and Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket costs and expenses in connection therewith. Borrower shall not be entitled to draw from any such Letter of Credit. Upon thirty (30) days notice to Lender, Borrower may replace a Letter of Credit theretofore delivered to Lender pursuant to this Section 6.12 with a cash deposit to the applicable Reserve Fund and/or with a Reserve Guaranty. Prior to such replacement of a Letter of Credit, to the extent same is not replaced with a Reserve Guaranty, Borrower shall deposit an amount equal to the amount that would have accumulated in the applicable Reserve Fund and not been disbursed in accordance with this Agreement if such Letter of Credit had not been delivered. (d) Borrower shall provide Lender with notice of any increases in the annual payments for Taxes and Insurance Premiums thirty (30) days prior to the effective date of any such increase and any applicable Letter of Credit under this Section 6.12 shall be increased by such increased amount at least ten (10) days prior to the effective date of such increase (unless such increase is covered by cash or a Reserve Guaranty).
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Samples: Loan Agreement (Americold Realty Trust), Loan Agreement (Americold Realty Trust)
Guaranty or Letter of Credit in Lieu of Cash Deposit. (a) In lieu of making cash deposits of Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds, Borrower may deliver to Lender one or more of the following: (i) a guaranty from Guarantor in form and substance reasonably acceptable to Lender (a “Reserve Guaranty”) or (ii) a Letter of Credit in accordance with the provisions of this Section 6.12. Borrower shall be responsible for the payment of all reasonable out-of-pocket costs and expenses incurred by the Servicer in the administration of any Letter of Credit or Reserve Guaranty delivered pursuant to this Section 6.12.
(b) In the event Borrower elects to deliver a Letter of Credit in lieu of making cash deposits of Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds, the aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds shall at all times be at least equal to the aggregate amount which Borrower is required to have on deposit in such Reserve Fund(s) pursuant to this Agreement. The aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Tax Funds shall at all times be at least equal to the aggregate which Borrower would be required to deposit in such Reserve Fund over the next twelve (12) month period. The aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Insurance Funds shall at all times be at least equal to the aggregate which Borrower would be required to deposit in such Reserve Fund over the next twelve (12) month period. In the event that a Letter of Credit and/or Reserve Guaranty is delivered in lieu of any portion of the Tax Funds or the Insurance Funds, Borrower shall be responsible for the payment of Taxes or Insurance Premiums, as applicable, and Lender shall not be responsible therefor.
(c) Borrower shall give Lender no less than thirty (30) days notice of Borrower’s election to deliver a Letter of Credit pursuant to this Section 6.12 and Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket costs and expenses in connection therewith. Borrower shall not be entitled to draw from any such Letter of Credit. Upon thirty (30) days notice to Lender, Borrower may replace a Letter of Credit theretofore delivered to Lender pursuant to this Section 6.12 with a cash deposit to the applicable Reserve Fund and/or with a Reserve Guaranty. Prior to such replacement of a Letter of Credit, to the extent same is not replaced with a Reserve Guaranty, Borrower shall deposit an amount equal to the amount that would have accumulated in the applicable Reserve Fund and not been disbursed in accordance with this Agreement if such Letter of Credit had not been delivered.
(d) Borrower shall provide Lender with notice of any increases in the annual payments for Taxes and Insurance Premiums thirty (30) days prior to the effective date of any such increase and any applicable Letter of Credit under this Section 6.12 shall be increased by such increased amount at least ten (10) days prior to the effective date of such increase (unless such increase is covered by cash or a Reserve Guaranty).thirty
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Guaranty or Letter of Credit in Lieu of Cash Deposit. (a) In lieu of making cash deposits of Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds, Borrower may deliver to Lender one or more of the following: (i) a guaranty from Guarantor in form and substance reasonably acceptable to Lender (a “Reserve Guaranty”) or (ii) a Letter of Credit in accordance with the provisions of this Section 6.12. Borrower shall be responsible for the payment of all reasonable out-of-pocket costs and expenses incurred by the Servicer in the administration of any Letter of Credit or Reserve Guaranty delivered pursuant to this Section 6.12.
(b) In the event Borrower elects to deliver a Letter of Credit in lieu of making cash deposits of Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds, the aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds shall at all times be at least equal to the aggregate amount which Borrower is required to have on deposit in such Reserve Fund(s) pursuant to this Agreement. The aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Tax Funds shall at all times be at least equal to the aggregate which Borrower would be required to deposit in such Reserve Fund over the next twelve (12) month period. The aggregate amount of any Letter of Credit, Reserve Guaranty and/or cash on deposit with respect to the Insurance Funds shall at all times be at least equal to the aggregate which Borrower would be required to deposit in such Reserve Fund over the next twelve (12) month period. In the event that a Letter of Credit and/or Reserve Guaranty is delivered in lieu of any portion of the Tax Funds or the Insurance Funds, Borrower shall be responsible for the payment of Taxes or Insurance Premiums, as applicable, and Lender shall not be responsible therefor.
(c) Borrower shall give Lender no less than thirty (30) days notice of Borrower’s election to deliver a Letter of Credit pursuant to this Section 6.12 and Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket costs and expenses in connection therewith. Borrower shall not be entitled to draw from any such Letter of Credit. Upon thirty (30) days notice to Lender, Borrower may replace a Letter of Credit theretofore delivered to Lender pursuant to this Section 6.12 with a cash deposit to the applicable Reserve Fund and/or with a Reserve Guaranty. Prior to such replacement of a Letter of Credit, to the extent same is not replaced with a Reserve Guaranty, Borrower shall deposit an amount equal to the amount that would have accumulated in the applicable Reserve Fund and not been disbursed in accordance with this Agreement if such Letter of Credit had not been delivered.
(d) Borrower shall provide Lender with notice of any increases in the annual payments for Taxes and Insurance Premiums thirty (30) days prior to the effective date of any such increase and any applicable Letter of Credit under this Section 6.12 shall be increased by such increased amount at least ten (10) days prior to the effective date of such increase (unless such increase is covered by cash or a Reserve Guaranty).
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