Common use of Maintaining the Collateral Clause in Contracts

Maintaining the Collateral. So long as any Letter of Credit shall be outstanding or the Letter of Credit Agreement shall be in effect: (a) It shall be a term and condition of each of the Accounts, notwithstanding any term or condition to the contrary in any other agreement relating to any such Account and except as otherwise provided by the provisions of Sections 11 (only if the Company is in compliance with Section 1(a) hereof) and 21 hereof, that no amount shall be paid or released to or for the account of, or withdrawn by or for the account of, any Grantor or any other Person from any Account, other than the Secured Party in accordance with the terms of this Agreement. (b) The Secured Party may, at any time and without notice to, or consent from the Grantor, transfer or direct the transfer of, funds from the Accounts to satisfy the Grantor’s obligations when due under the Letter of Credit Agreement.

Appears in 4 contracts

Samples: Letter of Credit Agreement (Gap Inc), Letter of Credit Agreement (Gap Inc), Letter of Credit Agreement (Gap Inc)

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