Security Reserve Account Sample Clauses
A Security Reserve Account clause establishes a dedicated account where funds are set aside as collateral or security for certain obligations under an agreement. Typically, the account is funded by one party and maintained at a specified balance, with withdrawals or releases governed by the terms of the contract—such as to cover missed payments, damages, or other specified liabilities. This clause ensures that there are readily available funds to address potential defaults or losses, thereby reducing risk and providing assurance to the party entitled to the security.
Security Reserve Account. On each Funding Date on which the Borrower acquires any Eligible Aircraft, the Borrower shall cause to be credited to the Security Reserve Account an amount equal to all cash Security Deposits received or deemed received pursuant to the related Aircraft Purchase Agreement, and at all times will, and will cause its Subsidiaries to, pay all other Security Deposits received by such Person into the Security Reserve Account. The balance from time to time in the Security Reserve Account shall be subject to withdrawal only as provided in the Security Agreement. Without limiting the foregoing, the beneficiary of any letter of credit provided in lieu of a cash Security Deposit or otherwise provided as security by a lessee under an Eligible Lease shall be the related Aircraft Owning Entity or Intermediate Lessee, as applicable.
Security Reserve Account. Immediately upon the occurrence of a Trigger Event, and for so long as the same is continuing, the Borrower shall, and shall cause its Subsidiaries to, deposit into the Security Reserve Account an amount equal to all cash Security Deposits received or deemed received pursuant to any Lease or the related Aircraft Purchase Agreement (and not previously utilized in accordance with the relevant Lease or Aircraft Purchase Agreement, as the case may be), and at all times will, and will cause its Subsidiaries to, pay all other Security Deposits received by such Person into the Security Reserve Account. The balance from time to time in the Security Reserve Account shall be subject to withdrawal only as provided herein and in the Security Agreement. To the extent a Lessee provides a letter of credit under the applicable Lease in substitution for any Security Deposit required to be paid thereunder, then if a Trigger Event shall have occurred and be continuing, the Borrower shall within a commercially reasonable period of time since such Trigger Event, but in any event no longer than 10 Business Days after such Trigger Event, deliver (or cause its designee to deliver) the original letter of credit to the Security Trustee and shall deliver to the Security Trustee original transfer documentation for such letter of credit to be transferred to the Security Trustee. To the extent the Trigger Event has been cured, the Security Trustee shall return any such letter of credit to the Borrower.
Security Reserve Account. (a) The Facility Agent has sole signing rights on the Security Reserve Account.
(b) The Company shall procure that the Upfront Security Reserve Amount is deposited into the Security Reserve Account on the Utilisation Date.
(c) If the Closing of the Securitisation has not occurred on or before the Interest Payment Date falling in October 2013, unless it is directed not to make such withdrawal and prepayment in writing by the Majority Lenders, the Facility Agent shall and is irrevocably authorised by the Company to, withdraw from, and apply amounts standing to the credit of, the Security Reserve Account on such Interest Payment Date (or on such other Interest Payment Date as the Majority Lenders may direct provided the Closing of the Securitisation has not occurred on or before such Interest Payment Date) in prepayment of the Loans in accordance with Clause 7.4(a)(ii) (Mandatory prepayment - Securitisation or Cash Security Reserve Trigger Event) and Clause 7.5(b) (Prepayments: Order of Application);.
(d) Unless instructed not to make such withdrawal and prepayment by the Majority Lenders, the Facility Agent must and is irrevocably authorised by the Company to withdraw from, and apply amounts standing to the credit of the Security Reserve Account in prepayment of the Loans pro rata on the Interest Payment Date following the occurrence of a Cash Security Reserve Trigger Event provided the relevant Cash Security Reserve Trigger Event is continuing on such Interest Payment Date.
(e) Amounts standing to the credit of the Security Reserve Account shall bear interest at the rate normally offered by the relevant Approved Bank to corporate depositors of amounts similar to the relevant amount for periods of deposit similar to the anticipated period of deposit of the relevant amount. The interest earned on such account will be for the account of the Company and, if no Event of Default is outstanding, shall be paid into the General Account.
(f) The amounts standing to the credit of the Security Reserve Account shall not be used and the Facility Agent shall not be permitted to make a withdrawal from the Security Reserve Account other than as provided in this Clause 14.7 (Security Reserve Account) unless the repayment of the Loans has been accelerated pursuant to Clause 19.20 (Acceleration).
Security Reserve Account. Immediately upon the occurrence of a Trigger Event, and for so long as the same is continuing, such Borrower Group Company shall cause to be credited to the Security Reserve Account an amount equal to all cash Security Deposits received or deemed received pursuant to the related Aircraft Purchase Agreement or Lease, as the case may be (and not previously utilized in accordance with the relevant Lease or Aircraft Purchase Agreement, as applicable), and at all times will, and will cause its Subsidiaries to, pay all other cash Security Deposits received by such Person into the Security Reserve Account. In the absence of any continuing Event of Default, the Borrower may request that Security Deposits held in the Security Reserve Account be paid to the Borrower, for application in accordance with the provisions under the relevant Lease or Aircraft Purchase Agreement, including, for payment into the Collections Account to the extent of any unpaid amounts owing to any Borrower Group Company by the applicable Lessee. Upon the occurrence and during the continuance of any Event of Default, Security Deposits may not be paid from the Security Reserve Account as provided in this clause (f), without the consent of the Administrative Agent.
Security Reserve Account. Immediately upon the occurrence of a Trigger Event, and for so long as the same is continuing, such Borrower Group Company shall cause to be credited to the Security Reserve Account an amount equal to all cash Security Deposits received or deemed received pursuant to the related Aircraft Purchase Agreement or Lease, as the case may be (and not previously utilized in accordance with the relevant Lease or Aircraft Purchase Agreement, as applicable), and at all times will, and will cause its Subsidiaries to, pay all other cash Security Deposits received by such Person into the Security Reserve Account; provided that, if at any time after funds have been deposited in the Security Reserve Account as the result of a Trigger Event, such Trigger Event ceases to exist, the Security Trustee shall release all funds on deposit in the Security Reserve Account at the request and direction of the Borrower. In the absence of any continuing Event of Default, the Borrower may request that Security Deposits held in the Security Reserve Account be paid to the Borrower, for application in accordance with the provisions under the relevant Lease or Aircraft Purchase Agreement, including, for payment into the Collections Account to the extent of any unpaid amounts owing to any Borrower Group Company by the applicable Lessee. Upon the occurrence and during the continuance of any Event of Default, Security Deposits may not be paid from the Security Reserve Account as provided in this clause (g), without the consent of the Administrative Agent.