Common use of Provision of Cash Collateral Clause in Contracts

Provision of Cash Collateral. In the event that, pursuant to Section 12.2, the obligations of the Operating Borrower to the Lenders hereunder shall be declared due and payable while any Contingent Payment Letter is outstanding, the Issuing Lender shall have the right to require the Operating Borrower to provide to the Issuing Lender cash collateral in an amount equal to the undrawn amount of, and in the currency of, all Contingent Payment Letters issued by the Issuing Lender then outstanding. The Operating Borrower agrees to provide such cash collateral to the Issuing Lender upon demand pursuant to this Section 5.8, together with such security agreements respecting such cash collateral as the Issuing Lender may, acting reasonably, deem advisable or necessary, including without limitation, assignments of credit balances in such cash collateral accounts. If the Operating Borrower fails to provide such cash collateral, the Lenders shall be entitled, without further authorization from the Operating Borrower, to make Prime Rate Advances or Base Rate Advances or both (and shall make such Advances at the request of the Issuing Lender) under the Operating Facility in amounts equal to and in the applicable currency of the undrawn amount of all Contingent Payment Letters issued by the Issuing Lender and then outstanding, and the provisions of this Agreement applicable to Prime Rate Advances or Base Rate Advances shall be applicable to such Advances. The cash collateral amount so paid by the Operating Borrower to the Issuing Lender or advanced by way of Prime Rate Advances or Base Rate Advances shall be placed by the Issuing Lender in one or more interest bearing cash collateral accounts held by the Issuing Lender and subsequent drawings under Contingent Payment Letters shall be funded through debits to the cash collateral accounts maintained by the Issuing Lender, provided that as such Contingent Payment Letters expire, an amount equal to the undrawn portion of such Contingent Payment Letters shall be debited to the cash collateral accounts maintained by the Issuing Lender and applied by the Issuing Lender in reduction of the then outstanding amount owing to the Lenders under the Operating Facility. Any excess amounts in such cash collateral accounts shall be applied in reduction of any loans or other amounts which shall be due and payable to the Lenders hereunder. At such time as there are no amounts due and outstanding hereunder, any amount remaining in the cash collateral accounts shall be paid to the Operating Borrower by the Issuing Lender. Cash collateral accounts maintained hereunder shall bear interest at the normal rates of interest paid by the Issuing Lender from time to time in respect of similar deposit accounts and such interest shall be credited to the cash collateral account and dealt with in the same manner as other balances in the cash collateral account.

Provision of Cash Collateral. In the event that, pursuant to Section 12.2, the obligations of the Requesting Operating Borrower to the Lenders hereunder shall be declared due and payable while any Contingent Payment Letter is outstanding, the Issuing Lender shall have the right to require the Requesting Operating Borrower to provide to the Issuing Lender cash collateral in an amount equal to the undrawn amount of, and in the currency of, all Contingent Payment Letters issued by the Issuing Lender then outstanding. The Requesting Operating Borrower agrees to provide such cash collateral to the Issuing Lender upon demand pursuant to this Section 5.8, together with such security agreements respecting such cash collateral as the Issuing Lender may, acting reasonably, deem advisable or necessary, including without limitation, assignments of credit balances in such cash collateral accounts. If the Requesting Operating Borrower fails to provide such cash collateral, the Lenders shall be entitled, without further authorization from the Requesting Operating Borrower, to make Prime Rate Advances or Base Rate Advances or both (and shall make such Advances at the request of the Issuing Lender) under the Operating Facility in amounts equal to and in the applicable currency of the undrawn amount of all Contingent Payment Letters issued by the Issuing Lender and then outstanding, and the provisions of this Agreement applicable to Prime Rate Advances or Base Rate Advances shall be applicable to such Advances. The cash collateral amount so paid by the Requesting Operating Borrower to the Issuing Lender or advanced by way of Prime Rate Advances or Base Rate Advances shall be placed by the Issuing Lender in one or more interest bearing cash collateral accounts held by the Issuing Lender and subsequent drawings under Contingent Payment Letters shall be funded through debits to the cash collateral accounts maintained by the Issuing Lender, provided that as such Contingent Payment Letters expire, an amount equal to the undrawn portion of such Contingent Payment Letters shall be debited to the cash collateral accounts maintained by the Issuing Lender and applied by the Issuing Lender in reduction of the then outstanding amount owing to the Lenders under the Operating Facility. Any excess amounts in such cash collateral accounts shall be applied in reduction of any loans or other amounts which shall be due and payable to the Lenders hereunder. At such time as there are no amounts due and outstanding hereunder, any amount remaining in the cash collateral accounts shall be paid to the Requesting Operating Borrower by the Issuing Lender. Cash collateral accounts maintained hereunder shall bear interest at the normal rates of interest paid by the Issuing Lender from time to time in respect of similar deposit accounts and such interest shall be credited to the cash collateral account and dealt with in the same manner as other balances in the cash collateral account.