Common use of Retention of Deposit After Cessation Clause in Contracts

Retention of Deposit After Cessation. Notwithstanding any other provision of the Agreement to the contrary, during the period not to exceed ***** from the earlier of termination of this Agreement or the date upon which Carrier permanently ceases flight operations, Member and Servicer may retain the Deposit and Letters of Credit until such time as the Servicer determines that Carrier has no further Obligations or potential Obligations, without any obligation to remit funds to Carrier until such time (provided, however, the Deposit shall not exceed Gross Exposure at any time). During any such period, Carrier may substitute cash collateral in lieu of any Letter of Credit that may be posted, provided that any such substitution is undertaken in a manner that does not expose Member or Servicer to liability for a preferential transfer under 11 U.S.C. §547.

Retention of Deposit After Cessation. Notwithstanding any other provision of the Agreement to the contrary, during the period not to exceed ***** from the earlier of termination of this Agreement or the date upon which Carrier permanently ceases flight operations, Member and Servicer may retain any funds then held during the Settlement Period or the Deposit and Letters of Credit until such time as the Servicer determines that Carrier has no further Obligations or potential Obligations, without any obligation to remit funds to Carrier until such time (provided, however, the Deposit shall not exceed Gross Exposure at any time). During any such period, Carrier may substitute cash collateral in lieu of any Letter of Credit that may be posted, provided that any such substitution is undertaken in a manner that does not expose Member or Servicer to liability for a preferential transfer under 11 U.S.C. §547.