Common use of Handback Letters of Credit Clause in Contracts

Handback Letters of Credit. In lieu of the establishment or ongoing funding of the Handback Reserve Account, Developer may deliver to the Authority one or more letters of credit (each in a form and from an issuer reasonably acceptable to the Authority and on the basis that the Authority shall be the sole beneficiary) with aggregate value equal to the ongoing Handback Reserve Amount, whereupon (to the extent that the Handback Reserve Account has already been established) the Escrow Agent shall pay all amounts standing to the credit of the Handback Reserve Account to Developer.