Common use of Supporting Letter of Credit; Cash Collateral Clause in Contracts

Supporting Letter of Credit; Cash Collateral. If, notwithstanding the provisions of Section 1.3(b), any Letter of Credit is outstanding upon the termination of this Agreement, then the Borrowers shall deposit with the Lender, either (i) a standby letter of credit (a "Supporting Letter of Credit") in form and substance satisfactory to the Lender, issued by an issuer satisfactory to the Lender, or (ii) cash collateral in which the Lender has the first priority and only Lien ("Cash Collateral"), in an amount equal to the greatest amount for which such Letter of Credit may be drawn plus any fees and expenses associated with such Letter of Credit, under which Supporting Letter of Credit or Cash Collateral the Lender is entitled to draw amounts necessary to reimburse the Lender for payments to be made by the Lender under such Letter of Credit and any fees and expenses associated with such Letter of Credit. Such Supporting Letter of Credit or Cash Collateral shall be held by the Lender as security for, and to provide for the payment of, the aggregate undrawn amount of such Letters of Credit remaining outstanding.

Appears in 1 contract

Samples: Credit Agreement (Reeds Jewelers Inc)

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Supporting Letter of Credit; Cash Collateral. If, notwithstanding the provisions of Section 1.3(b)) and Section 10.1, any Letter of Credit or Credit Support is outstanding upon the termination of this Agreement, then upon such termination the Borrowers shall deposit with the Lender, either (i) with respect to each Letter of Credit or Credit Support then outstanding, a standby letter of credit (a "Supporting Letter of Credit") in form and substance reasonably satisfactory to the Lender, issued by an issuer reasonably satisfactory to the Lender, or (ii) cash collateral in which the Lender has the first priority and only Lien ("Cash Collateral"), in an amount equal to the greatest amount for which such Letter of Credit or such Credit Support may be drawn plus any fees and expenses associated with such Letter of CreditCredit or such Credit Support, under which Supporting Letter of Credit or Cash Collateral the Lender is entitled to draw amounts necessary to reimburse the Lender for payments to be made by the Lender under such Letter of Credit or Credit Support and any reasonable fees and expenses associated with such Letter of CreditCredit or Credit Support. Such Supporting Letter of Credit or Cash Collateral shall be held by the Lender as security for, and to provide for the payment of, the aggregate undrawn amount of such Letters of Credit or such Credit Support remaining outstanding.

Appears in 1 contract

Samples: Credit Agreement (Spacelabs Medical Inc)

Supporting Letter of Credit; Cash Collateral. If, notwithstanding the provisions of Section 1.3(b)SECTION 1.4(b) and SECTION 10.1, any Letter of Credit or Credit Support is outstanding upon the termination of this Agreement, then upon such termination the Borrowers shall deposit with the Lender, either (i) with respect to each Letter of Credit or Credit Support then outstanding, a standby letter of credit (a "Supporting Letter of Credit") in form and substance satisfactory to the Lender, issued by an issuer satisfactory to the Lender, or (ii) cash collateral in which the Lender has the first priority and only Lien ("Cash Collateral"), in an amount equal to the greatest amount for which such Letter of Credit or such Credit Support may be drawn plus any fees and expenses associated with such Letter of CreditCredit or such Credit Support, under which Supporting Letter of Credit or Cash Collateral the Lender is entitled to draw amounts necessary to reimburse the Lender for payments to be made by the Lender under such Letter of Credit or Credit Support and any fees and expenses associated with such Letter of CreditCredit or Credit Support. Such Supporting Letter of Credit or Cash Collateral shall be held by the Lender as security for, and to provide for the payment of, the aggregate undrawn amount of such Letters of Credit or such Credit Support remaining outstanding.

Appears in 1 contract

Samples: Credit Agreement (Meade Instruments Corp)

Supporting Letter of Credit; Cash Collateral. If, notwithstanding the provisions of Section 1.3(b)1.4(b) and Section 10.1, any Letter of Credit or Credit Support is outstanding upon the termination of this Agreement, then upon such termination the Borrowers Borrower shall deposit with the Lender, either (i) with respect to each Letter of Credit or Credit Support then outstanding, a standby letter of credit (a "β€œSupporting Letter of Credit"”) in form and substance satisfactory to the Lender, issued by an issuer satisfactory to the Lender, or (ii) cash collateral in which the Lender has the first priority and only Lien ("Cash Collateral"), in an amount equal to the greatest amount for which such Letter of Credit or such Credit Support may be drawn plus any fees and expenses associated with such Letter of CreditCredit or such Credit Support, under which Supporting Letter of Credit or Cash Collateral the Lender is entitled to draw amounts necessary to reimburse the Lender for payments to be made by the Lender under such Letter of Credit or Credit Support and any fees and expenses associated with such Letter of CreditCredit or Credit Support. Such Supporting Letter of Credit or Cash Collateral shall be held by the Lender as security for, and to provide for the payment of, the aggregate undrawn amount of such Letters of Credit or such Credit Support remaining outstanding.

Appears in 1 contract

Samples: Credit Agreement (New Athletics, Inc.)

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Supporting Letter of Credit; Cash Collateral. If, notwithstanding the provisions of Section 1.3(b)1.4(b) and Section 10.1, any Letter of Credit or Credit Support is outstanding upon the termination of this Agreement, then upon such termination the Borrowers Borrower shall deposit with the Lender, either (i) with respect to each Letter of Credit or Credit Support then outstanding, a standby letter of credit (a "Supporting Letter of Credit") in form and substance satisfactory to the Lender, issued by an issuer satisfactory to the Lender, or (ii) cash collateral in which the Lender has the first priority and only Lien ("Cash Collateral"), in an amount equal to the greatest amount for which such Letter of Credit or such Credit Support may be drawn plus any fees and expenses associated with such Letter of CreditCredit or such Credit Support, under which Supporting Letter of Credit or Cash Collateral the Lender is entitled to draw amounts necessary to reimburse the Lender for payments to be made by the Lender under such Letter of Credit or Credit Support and any fees and expenses associated with such Letter of CreditCredit or Credit Support. Such Supporting Letter of Credit or Cash Collateral shall be held by the Lender as security for, and to provide for the payment of, the aggregate undrawn amount of such Letters of Credit or such Credit Support remaining outstanding.

Appears in 1 contract

Samples: Credit Agreement (Meade Instruments Corp)

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