Security for Debt. Each Letter of Credit delivered under this Agreement shall be additional security for the payment of the Debt. Upon the occurrence of an Event of Default, Agent shall have the right, at its option, to draw on any Letter of Credit and to apply all or any part thereof to the payment of the items for which such Letter of Credit was established or to apply each such Letter of Credit to payment of the Debt in such order, proportion or priority as Agent may determine.
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Samples: Loan Agreement, Loan Agreement (Sothebys), Loan Agreement (Empire State Realty Trust, Inc.)
Security for Debt. Each Letter of Credit delivered under this Agreement shall be additional security for the payment of the Debt. Upon the occurrence and during the continuance of an Event of Default, Agent shall have the right, at its option, to either (a) draw on upon any Letter of Credit and to apply all or any part thereof of such funds to the payment of the items for which such Letter of Credit was established or to apply each such Letter of Credit to payment of the Debt in such order, proportion or priority as Agent may determinedetermine or (b) hold amounts so drawn as additional security for the payment of the Debt.
Appears in 2 contracts
Samples: Loan Agreement (New York REIT, Inc.), Mezzanine Loan Agreement (New York REIT, Inc.)
Security for Debt. Each Letter of Credit delivered under pursuant to this Agreement shall be constitute additional security for the payment of the Debt. Upon the occurrence of an Event of Default, Agent shall have the right, at its option, to draw on any Letter of Credit and to apply all or any part thereof to the payment of the items for which such Letter of Credit was established delivered or to apply each such Letter of Credit to payment of the Debt in such order, proportion or priority as Agent may determine.
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