Common use of Special Cash Collateral Account Clause in Contracts

Special Cash Collateral Account. The Borrower may from time to time deposit into the Special Cash Collateral Account cash of the Borrower to be included in the calculation of the Borrowing Base; provided that (i) such deposit shall be made upon not less than 2 Business Days’ prior written notice to the Facility Agents and (ii) such deposit shall be made on the same day (or within one Business Day thereafter) as the day of the delivery of the Borrowing Base Certificate required by Section 6.12(a) (Borrowing Base Determination) (but in any event no more frequently than once per week). The Borrower may not make any such deposit if a Default or an Event of Default shall have occurred and is continuing unless the making of such deposit shall cure such Default or Event of Default. Funds on deposit in the Special Cash Collateral Account may be invested in Permitted Cash Equivalents at the direction of the Collateral Agent and, except during the continuance of an Event of Default (unless otherwise agreed to by the Administrative Agent in its sole discretion), the Collateral Agent agrees with the Borrower to make or cause to be made such investments in Permitted Cash Equivalents as requested by the Borrower; provided, however, that the Collateral Agent shall not have any responsibility for, or bear any risk of loss of, any such requested investment or income thereon and the Collateral Agent shall have no obligation to make or cause to be made any such investment absent a request by the Borrower for a specific investment in Permitted Cash Equivalents. The Borrower may request the Collateral Agent to withdraw monies from the Special Cash Collateral Account and deliver such withdrawn amounts to the Borrower by written notice to the Facility Agents delivered together with (but no more frequently than once per week) the delivery of the Borrowing Base Certificate required by Section 6.12(a) (Borrowing Base Determination); provided, that no withdrawal shall be permitted at the request of the Borrower if a Default or an Event of Default shall have occurred and is continuing (other than a withdrawal of monies by the Collateral Agent, at the request of the Borrower, to be applied directly to the immediate payment of the Loans and if paid in full then to the cash collateralization of Letter of Credit Obligations, and not to be delivered to the Borrower) or, after giving effect to such withdrawal, the aggregate principal amount of the Revolving Credit Outstandings will exceed the Maximum Credit. The parties hereto acknowledge and agree that the Special Cash Collateral Account is not a Cash Collateral Account and that all funds and Permitted Cash Equivalents in the Special Cash Collateral Account are collateral security for the payment of the Secured Obligations. The Administrative Agent may, in its sole discretion, from time to time apply funds and Permitted Cash Equivalents then held in the Special Cash Collateral Account to the payment of Secured Obligations which are past due.