Common use of Standstill Period; Defaulted Loan Guaranty Demand Clause in Contracts

Standstill Period; Defaulted Loan Guaranty Demand. (a) In the event that following the end of a Response Period, a Loan Payment Default is not cured or in the event that any other Loan Default is not then waived, then unless a Credit Event has occurred and is continuing, the Servicer will continue to refrain from exercising remedies against such Borrower during the Standstill Period provided that the Sponsor immediately pays all past due interest and fees owing to the Servicer pursuant to the applicable Loan Documents, if any, on such Defaulted Loans. After the Standstill Period ends, the Servicer shall have the right at any time thereafter, to demand payment of the entire Loan Indebtedness with respect to such Loan from the Sponsor pursuant to Article VIII hereof (unless the events set forth in Section 8.2(b)(ii) or (iii) have occurred), which amount, subject to the limitations set forth therein, shall be due and payable on the date which is five (5) days following demand. The Sponsor hereby acknowledges and agrees that the requirement for payment in full of the Loan Indebtedness shall include the posting of cash collateral with the Servicer in an amount equal to 105% of the outstanding Letter of Credit Obligations of such Borrower, unless the outstanding Letters of Credit are canceled and returned to the Servicer. The provisions of this Section 4.3(a) are subject in all respects to Section 8.1 below. (b) In the event that the Sponsor is not obligated to repay the Loan Indebtedness with respect to a Defaulted Loan pursuant to Article VIII hereof or in the event that a Credit Event has occurred and is continuing and Sponsor has not purchased all outstanding Loans hereunder, the Sponsor agrees that the Servicer shall be released from its obligations to the Sponsor hereunder with respect to administering and enforcing all Loans and may administer and enforce such Loans and Letter of Credit Obligations as it deems appropriate, without regard to any limitations or restrictions set forth herein (but subject to Article III hereof in all events) or in any other Operative Document.

Standstill Period; Defaulted Loan Guaranty Demand. (a) In the event that following the end of a Response Period, a Loan Payment Default is not cured or in the event that any other Loan Default is not then waived, then unless a Credit Event has occurred and is continuing, the Servicer will continue to refrain from exercising remedies against such Borrower during the Standstill Period provided that the Sponsor immediately pays all past due interest and fees owing to the Servicer pursuant to the applicable Loan Documents, if any, on such Defaulted Loans. After the Standstill Period ends, the Servicer shall have the right at any time thereafter, to demand payment of the entire Loan Indebtedness with respect to such Loan from the Sponsor pursuant to Article VIII hereof (unless the events set forth in Section 8.2(b)(ii8.3(b)(ii) or (iii) have occurred), which amount, subject to the limitations set forth therein, shall be due and payable on the date which is five (5) days following demand. The Sponsor hereby acknowledges and agrees that the requirement for payment in full of the Loan Indebtedness shall include the posting of cash collateral with the Servicer in an amount equal to 105% of the outstanding Letter of Credit Obligations of such Borrower, unless the outstanding Letters of Credit are canceled and returned to the Servicer. The provisions of this Section 4.3(a4.2(a) are subject in all respects to Section 8.1 8.2 below. (b) In the event that the Sponsor is not obligated to repay the Loan Indebtedness with respect to a Defaulted Loan pursuant to Article VIII hereof or in the event that a Credit Event has occurred and is continuing and Sponsor has not purchased all outstanding Loans hereunder, the Sponsor agrees that the Servicer shall be released from its obligations to the Sponsor hereunder with respect to administering and enforcing all Loans and may administer and enforce such Loans and Letter of Credit Obligations as it deems appropriate, without regard to any limitations or restrictions set forth herein (but subject to Article III hereof in all events) or in any other Operative Document.