Common use of Letter of Credit Drawings and Realizations Upon Collateral Clause in Contracts

Letter of Credit Drawings and Realizations Upon Collateral. If, within thirty (30) days prior to the expiration date stated in the expiring Letter of Credit, the El Paso Settling Parties fail to replace such expiring Letter of Credit with another Letter of Credit in the same amount or with other Collateral meeting the requirements of Paragraph 8.1 of this Agreement or fail to deliver a Compliance Certificate demonstrating that, after giving effect to the expiration and surrender of the Letter of Credit, the Collateral coverage requirements of Paragraph 8.3 (a) will continue to be satisfied, then the Collateral Agent may draw on the expiring Letter of Credit. If any drawing shall be made under any Letter of Credit or the Collateral Agent shall receive or obtain any amounts in respect of any Collateral (whether as a result of any realization upon any Collateral or otherwise), and the aggregate amount of funds held by the Collateral Agent shall exceed the balance then due in respect of any Secured Obligations, then such amount, when received by the Collateral Agent, shall be held by the Collateral Agent in an interest bearing account opened by the Collateral Agent as cash collateral for Secured Obligations, as part of the Collateral. Amounts held in such cash collateral account shall be applied by the Collateral Agent to the payment of the Secured Obligations or released to the extent permitted by Paragraph 8.3(f). Such cash collateral shall be held pursuant to such lien documentation as shall be in form and substance reasonably satisfactory to the Designated Representative (which documents are hereby consented to by the El Paso Settling Parties). The El Paso Pledgors shall execute such further agreements, documents, instruments or financing statements as the Collateral Agent reasonably deems necessary in connection therewith.

Letter of Credit Drawings and Realizations Upon Collateral. If, within thirty (30) days prior to the expiration date stated in the expiring Letter of Credit, the El Paso Settling Parties fail to replace such expiring Letter of Credit with another Letter of Credit in the same amount or with other Collateral meeting the requirements of Paragraph Paragraph 8.1 of this Agreement or fail to deliver a Compliance Certificate demonstrating that, after giving effect to the expiration and surrender of the Letter of Credit, the Collateral coverage requirements of Paragraph 8.3 (a) will continue to be satisfied, then the Collateral Agent may draw on the expiring Letter of Credit. If any drawing shall be made under any Letter of Credit or the Collateral Agent shall receive or obtain any amounts in respect of any Collateral (whether as a result of any realization upon any Collateral or otherwise), and the aggregate amount of funds held by the Collateral Agent shall exceed the balance then due in respect of any Secured Obligations, then such amount, when received by the Collateral Agent, shall be held by the Collateral Agent in an interest bearing account opened by the Collateral Agent as cash collateral for Secured Obligations, as part of the Collateral. Amounts held in such cash collateral account shall be applied by the Collateral Agent to the payment of the Secured Obligations or released to the extent permitted by Paragraph 8.3(f). Such cash collateral shall be held pursuant to such lien documentation as shall be in form and substance reasonably satisfactory to the Designated Representative (which documents are hereby consented to by the El Paso Settling Parties). The El Paso Pledgors shall execute such further agreements, documents, instruments or financing statements as the Collateral Agent reasonably deems necessary in connection therewith.