Common use of Pledge of Bonds Clause in Contracts

Pledge of Bonds. As security for the payment of the obligations of the Company pursuant to Paragraph 3(a)(iii) hereof, the Company shall pledge to the Bank, and grant to the Bank a security interest in, all of the Company's right, title and interest in and to the Bonds delivered to the Trustee in connection with Purchase Drawings (the Pledged Bonds), pursuant to a Pledge and Security Agreement dated the date hereof between the Bank and the Company (the Bond Pledge Agreement). At such time as the Bank determines that the Pledged Bonds should be remarketed, it shall deliver to the Trustee the notice required by Section 309 of the Trust Agreement. Upon the sale of the Pledged Bonds or the cancellation of Pledged Bonds that cannot be remarketed and the payment to the Bank of an amount equal to the Purchase Drawing corresponding to the principal amount of Pledged Bonds sold or cancelled, together with (x) accrued interest thereon, as set forth in clause (B) of Paragraph 3(a)(iii) hereof, to the date of such payment or cancellation and (y) all amounts owing in respect of the Interest Drawing, if any, made in conjunction with such Purchase Drawing, then (1) the outstanding obligations of the Company under Paragraph 3(a)(iii) hereof shall be reduced by the amount of such payment, (2) interests shall cease to accrue on the amount paid and (3) the Bank shall release from the pledge and security interest created by the Bond Pledge Agreement a principal amount of Pledged Bonds equal to the principal amount of Pledged Bonds to be sold or cancelled.

Pledge of Bonds. (i) As security for the payment of the obligations of the Company pursuant to Paragraph 3(a)(iii) hereof3A above, the Company shall pledge hereby pledges to the Bank, and grant grants to the Bank a security interest in, all of the Company's its right, title and interest in and to the Bonds delivered to the Trustee Bank in connection with Purchase A Drawings (the herein called "Pledged Bonds"), . Any amounts from time to time owing to the bank pursuant to a Pledge paragraph 3A above may be paid (a) at any time by the Company in accordance with the terms of the Line of Credit Agreement on one Business Day's notice stating the amount to be paid (which shall be $5,000 or an integral multiple thereof) and Security Agreement dated (b) at any time on behalf of the date hereof between Company on one Business Day's notice from the Company directing the Bank and the Company to deliver (the Bond Pledge Agreement). At such time as the Bank determines that the Pledged Bonds should be remarketed, it shall deliver or to cause the Trustee the notice required by Section 309 of the Trust Agreement. Upon the sale of the Pledged Bonds or the cancellation to deliver) a specified principal amount of Pledged Bonds that cannot be remarketed and held by or on behalf of the Bank for sale pursuant to the Indenture. Upon payment to the Bank of an the amount equal to the Purchase Drawing corresponding be paid pursuant to the principal amount of Pledged Bonds sold clause (a) or cancelled(b) above, together with (x) accrued interest thereon, as set forth provided in clause (B) of Paragraph 3(a)(iii) hereof3A, to the date of such payment on the amount to be paid, the outstanding obligations of the Company under Paragraph 3A above shall be reduced by the amount of such payment, interest shall cease to accrued on the amount paid and the Bank shall release (or cancellation shall be deemed to have released) from the pledge and (y) all amounts security interest created hereby a principal amount of Pledged Bonds equal to the amount of such payment, provided that prior to such release from the pledge and security interest created hereby of Bonds delivered to or for the benefit of the Bank in connection with an A Drawing, the Company shall have paid to the Bank the amount owing in respect of the Interest C Drawing, if any, made in conjunction with such Purchase A Drawing, then (1) the outstanding obligations of . Such Bonds shall be delivered to the Company under on payment to the Bank as aforesaid or to the Trustee for sale pursuant to the Indenture. Notwithstanding the foregoing, no payment of amounts owing to the Bank pursuant to Paragraph 3(a)(iii) hereof 3A may be made, and no Pledged Bonds shall be reduced by released, during the amount of such payment, (2) interests shall cease period commencing two Business Days prior to accrue on the amount paid and (3) the Bank shall release from the pledge and security interest created by the Bond Pledge Agreement a principal amount of Pledged Bonds equal an Interest Payment Date with respect to the principal amount Bonds and ending at the close of Pledged Bonds to be sold or cancelledbusiness on such Interest Payment Date.

Pledge of Bonds. As security for the payment --------------- of the obligations of the Company pursuant to Paragraph 3(a)(iiiSection 1.02(a)(ii) hereofabove, the Company shall will pledge to the Bank, and grant to the Bank a security interest in, all of the Company's its right, title and interest in and to the Bonds delivered to the Trustee or the Paying Agent for the account of the Bank in connection with Purchase Drawings any C Drawing (the herein called "Pledged Bonds"), pursuant to a pledge and security agreement in the form of Exhibit B attached hereto (the "Pledge and Security Agreement dated the date hereof between Agreement"). Any amounts from time to time owing to the Bank and pursuant to Section 1.02(a) (ii) above may be prepaid (a) at any time by the Company on one Business Day's notice stating the amount to be prepaid (which shall be $5,000 or a whole multiple thereof) and (b) at any time on behalf of the Bond Pledge Agreement). At such time as Company on one Business Day's notice from the Company directing the Bank determines that the Pledged Bonds should be remarketed, it shall to deliver to the Trustee the notice required by Section 309 of the Trust Agreement. Upon the sale of the Pledged Bonds or the cancellation a specified principal amount of Pledged Bonds that cannot be remarketed and held by or on behalf of the Bank for sale pursuant to Section 4.08 of the Indenture. Upon payment to the Bank of an the amount equal to the Purchase Drawing corresponding be prepaid pursuant to the principal amount of Pledged Bonds sold clause (a) or cancelled(b) above, together with (x) accrued interest thereoninterest, as set forth in clause Section 1.02(a) (B) of Paragraph 3(a)(iii) hereofii), to the date of such payment or cancellation and (y) all amounts owing in respect of prepayment on the Interest Drawingamount to be prepaid, if any, made in conjunction with such Purchase Drawing, then (1) the outstanding obligations of the Company under Paragraph 3(a)(iii) hereof Section 1.02 above shall be reduced by the amount of such paymentprepayment, (2) interests interest shall cease to accrue on the amount paid prepaid and (3) the Bank shall release from the pledge and security interest created by the Bond Pledge Agreement a principal amount of Pledged Bonds equal to the principal amount of Pledged such prepayment; provided, however, that prior ----------------- such release from the pledge and security interest created by the Pledge Agreement of Bonds delivered to or on behalf of the Bank in connection with a C Drawing, the Company shall have paid to the Bank the amount owing in respect of the D Drawing, if any, made in conjunction with such C Drawing. Such Bonds shall be sold delivered to the Company, in the event of a prepayment pursuant to clause (a) above, or cancelledto the Paying Agent pursuant to Sections 4.06 and 4.08 of the Indenture, in the event of a prepayment pursuant to clause (b) above, as appropriate.