Letter of Credit Security Deposit. Within ten (10) business days following Landlord’s and Tenant’s execution and delivery of this Lease, Tenant shall deliver to Landlord a standby, unconditional, irrevocable letter of credit in the substantially the same form as attached hereto as Exhibit E (the “Letter of Credit”) in the amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00), naming Landlord as beneficiary, issued by a national banking association reasonably approved by Landlord within five (5) business days, permitting draws thereon, as security for the full performance by Tenant of its obligations hereunder. Silicon Valley Bank is hereby approved by Landlord if selected by Tenant as the issuing bank. The term of such Letter of Credit, or any extension thereof or any replacement letter of credit, shall be for a period of not less than one year and shall be renewed annually. If the Letter of Credit is not renewed within thirty (30) days prior to its expiration date and a replacement Letter of Credit has not been provided to Landlord by such date, the Landlord may draw entire the Letter of Credit and hold the proceeds thereof as a cash security deposit (the “Security Deposit”) pursuant to the terms and provisions of this Lease. In the event Landlord transfers or assigns this Lease, Tenant shall cause the Letter of Credit to be reissued in the name of Landlord’s transferee or assignee and Tenant shall pay the first transfer fee in connection with any such assignment and Landlord shall pay all subsequent transfer fees. In the event of default by Tenant under the Lease and after the expiration of any applicable notice and cure period, if any, Landlord, at its option and in addition to any other rights or remedies Landlord may have, may immediately draw all or a portion of the amount of the Letter of Credit. The sums obtained by Landlord from the Letter of Credit may be used by the Landlord to: (i) cure the default by Tenant including, but not limited to, for the payment of Base Rent, Additional Rent, late fees, interest, fees and expenses; (ii) to reimburse Landlord for the costs and expenses incurred by Landlord in connection with this Lease, including but not limited to, broker commissions and fees and the Tenant Allowance in the Work Letter; and (iii) reimburse Landlord for the reasonable direct costs of Landlord in drawing any amount under any Letter of Credit. In no event may Tenant require Landlord to draw and apply such Letter of Credit or any portion thereof for Base Ren...
Letter of Credit Security Deposit. Pursuant to the terms of the Lease, a Security Deposit of One Million Ninety-two Thousand Dollars ($1,092,000) is required from Tenant. In lieu of depositing cash for the full amount of the Security Deposit, Tenant shall have the right to deposit a letter of credit for up to One Million Dollars ($1,000,000) (the "Maximum Letter of Credit Amount"), with the balance of the Security Deposit in the form of cash. Said letter of credit shall be in the form of an irrevocable, unconditional and clean standby letter of credit and otherwise in the form set forth below (the "Letter of Credit"). The term Security Deposit shall mean the cash portion of the Security Deposit and the Letter of Credit.
Letter of Credit Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall provide to Landlord a security deposit in immediately available funds in the amount of $759,703.00 (the “Interim Security Deposit”), which Interim Security Deposit shall be governed by the terms of this Section 6 applicable to the Security Deposit (defined below). Tenant shall be required to replace the Interim Security Deposit with a Letter of Credit (as defined in the Basic Lease Information) in accordance with the terms of Exhibit J no later than sixty (60) days from the date of this Lease, and upon delivery to Landlord of such Letter of Credit, Landlord shall return promptly to Tenant the Interim Security Deposit in the manner set forth below. Any time after the first day of the 66th month of the Lease Term, provided that there is no Event of Default by Tenant under the Lease, Tenant may elect to replace the Letter of Credit with a Security Deposit in the amount of $80,181.50 (the “Security Deposit”). Contemporaneously with written notice by Tenant of such election, Tenant shall pay to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. Upon such payment, Landlord shall return the Letter of Credit to Tenant, and Tenant shall have no further obligation to provide a Letter of Credit. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined in Section 17). Landlord may, at Landlord’s discretion, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder or in connection with Landlord’s remedies under this Lease. Following any such application of the cash Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Subject to the requirements of, and conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within the time required by applicable Law, return to Tenant the portion of the Security Deposit remaining after deducting all damages, charges and other amounts permitted by Law. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result ...
Letter of Credit Security Deposit. Any portion of the Letter of Credit that is drawn on by Landlord but not applied by Landlord shall be held by Landlord as a security deposit (the "Security Deposit") which may be applied from time to time by Landlord for the purposes described in Sections 7.3(a), (b) and (c).
Letter of Credit Security Deposit. Upon execution of this First Amendment, the following provisions shall be amended:
a. The Letter of Credit provision in the Basic Lease Information is hereby deleted and replaced with the following: “See Section 6. The initial Letter of Credit amount shall be $971,921.95 [TI Allowance of $569,030.00 from original Lease + TI Allowance of $151,965.00 under this First Amendment + leasing commission of $190,673.00 from original Lease + leasing commission of $60,253.95]”
b. Section 6 of the Lease shall be amended so that the amount of the Interim Security Deposit shall be increased to $971,921.95, and the amount of the Security Deposit shall be increased to $101,594.76.
c. The reduction schedule in Section 6 of Exhibit J is hereby deleted and replaced with the following: Last day of the 29th month of the initial Lease Term $242,980.49 (25% of the initial LC Amount) $728,941.46 Last day of the 41st month of the initial Lease Term $242,980.49 (25% of the initial LC Amount) $485,960.97 Last day of the 53rd month of the initial Lease Term $242,980.49 (25% of the initial LC Amount) $242,980.48 After the last day of the 65th month of the initial Lease Term, the provisions of Section 6 of the Lease shall apply.”
Letter of Credit Security Deposit. As security for the full and faithful performance of all the obligations of Tenant under this Lease (the “Obligations”), Tenant shall maintain in full force and effect throughout the Term, an irrevocable, standby letter of credit (the “Letter of Credit”) in favor of Landlord or its successors or assigns, with a national lending institution that is reasonably acceptable to Landlord (the “Lender”), in the amount of $56,295.00 (the “Credit Limit”). On or before March 11, 2014, Tenant shall deliver the Letter of Credit to Landlord in the amount of the Credit Limit, which Letter of Credit shall be in a form reasonably acceptable to Landlord, Lender and Tenant.
Letter of Credit Security Deposit. A Security Deposit of $436,000.00 is required from Tenant, of which $318,000.00 (“Initial Deposit”) is due concurrent with Tenant’s execution of the Lease and the balance on or before the Commencement Date of the Lease Term for the Lease (“Additional Deposit”). If the estimated cost to remove the alterations and improvements being constructed by Tenant in connection with the Sublease and to restore the Premises is more than $200,000.00 as reasonably determined by Landlord’s contractor, then Tenant agrees to increase the Security Deposit by the amount of such additional costs in excess of $200,000.00 within fifteen (15) days after receipt of written notice from Landlord together with its estimate of the costs of such work. In lieu of depositing cash for the full amount of the Security Deposit, Tenant shall have the right to deposit a letter of credit for up to the amount of the Security Deposit. Said letter of credit shall be in the form of an irrevocable standby letter of credit and otherwise in the form set forth below (the “Letter of Credit”). The term Security Deposit shall mean the cash portion of the Security Deposit and the Letter of Credit. Tenant covenants and agrees to deliver to Landlord the Initial Deposit concurrent with the execution of this Lease and the Additional Deposit on or before the Commencement Date of the Lease Term. Landlord agrees to use the cash portion of the Security Deposit before using the Letter of Credit. Landlord agrees to draw against the Letter of Credit only to the extent required to cure any default or breach by Tenant under the Lease and recover Landlord’s damages, provided the Letter of Credit permits partial draws.
Letter of Credit Security Deposit. Reissued or amended letter of credit for the letter of credit security deposit held under the Lease, naming Buyer as beneficiary.
Letter of Credit Security Deposit. (1) Within fifteen (15) days after the award of the initial franchise, the Grantee shall deposit with the Village either an irrevocable letter of credit from a financial institution or a security deposit in the amount of fifty thousand dollars ($50,000.00) with the form to be established by the Village. The form and content of such letter of credit or security deposit shall be approved by the Village Attorney. These instruments shall be used to insure the faithful performance of the Grantee of all provisions of this Franchise; and compliance with all orders, permits and directions of any agency, commission, board, department, division, or office of the Village having jurisdiction over its acts or defaults under this franchise, and the payment by the Grantee of any claims, liens, and taxes due the Village which arise by reason of the construction, operation or maintenance of the system.
(2) The letter of credit or security deposit shall be maintained at the amount established by the Village for the entire term of this franchise, even if amounts have to be withdrawn pursuant to a subsections (a) or (b) of this section.
(3) If the Grantee fails to pay to the Village any compensation within the time fixed herein; or fails after fifteen (15) days notice to pay to the Village any taxes due and unpaid; or fails to repay the Village within fifteen (15)days, any damages, costs or expenses which the Village is compelled to pay by reason of any act or default of the Grantee in connection with this franchise, or fails, after three (3) days notice of such failure by the Village to comply with any provision of this franchise which the Village reasonably determines can be remedied by demand on the letter of credit or security deposit, the Village may immediately request payment of the amount thereof, with interest and any penalties, from the letter of credit or security deposit. Upon such request for payment, the Village shall notify the Grantee of the amount and date thereof.
(4) The rights reserved to the Village with respect to the letter of credit are in addition to all other rights of the Village, whether reserved by this franchise or authorized by law, and no action, proceeding or exercise of a right with respect to such letter of credit shall affect any other right the Village may have.
(5) The letter of credit shall contain the following endorsement: "It is hereby understood and agreed that this letter of credit or security deposit may not be canceled by the sure...
Letter of Credit Security Deposit. Failure to provide the Security Deposit or Letter of Credit as and when due.
