Common use of Provision of Cash Collateral Clause in Contracts

Provision of Cash Collateral. If an Event of Default shall occur and be continuing and the Borrower receives notice from the Administrative Agent or the Requisite Lenders demanding the deposit of cash collateral in respect of the outstanding Letters of Credit pursuant to this paragraph, the Borrower shall immediately deposit into an account established and maintained on the books and records of the Administrative Agent, which account may be a “securities account” (within the meaning of Section 8-501 of the Uniform Commercial Code as in effect in the State of New York (the “Uniform Commercial Code”)), in the name of the Administrative Agent and for the benefit of the Lenders and (with respect to Fronted Letters of Credit) the Fronted LC Issuing Banks, an amount in cash equal to 105% of the aggregate LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in Section 7.6 or Section 7.7. Such deposit shall be held by the Administrative Agent as collateral for the LC Exposure under this Agreement, and for this purpose the Borrower hereby grants a security interest to the Administrative Agent for the benefit of the Lenders and the Fronted LC Issuing Banks in such collateral account and in any financial assets (as defined in the Uniform Commercial Code) or other property held therein.