Deposit Letter definition
Examples of Deposit Letter in a sentence
If the Initial Deposit is in the form of a letter of credit (the “Deposit Letter of Credit”), the Deposit Letter of Credit shall not constitute payment on account of and shall not be credited against the Purchase Price; rather, the Deposit Letter of Credit shall be used as security to ensure Developer’s compliance with this Agreement and may be drawn on by District in accordance with the terms hereof.
Notwithstanding any other provision of this Agreement, no Deposit Loan shall be made, and no Deposit Letter of Credit shall be issued or the stated amount thereof increased, if after giving effect thereto the aggregate amount of the Deposits would be less than the Deposit LC Exposure.
The proceeds of the Deposit L/C Loans shall be deposited into the Deposit L/C Loan Collateral Account for the purpose of cash collateralizing the Borrower’s obligations to the Deposit Letter of Credit Issuer in respect of Deposit Letters of Credit.
The Borrower may add Revolving Letter of Credit Issuers and/or Deposit Letter of Credit Issuers at any time upon notice to the Administrative Agent.
Each notice shall be executed by the Borrower, shall specify whether such Letter of Credit is to be a Revolving Letter of Credit or Deposit Letter of Credit and shall be in the form of Exhibit G, or such other form (including by electronic or fax transmission) as agreed between the Borrower, the Administrative Agent and the applicable Letter of Credit Issuer (each a “Letter of Credit Request”).
In the event of a Developer Default, District may terminate this Agreement and, retain the Initial Deposit (District shall be entitled to keep any Cash Deposit and any accrued interest thereon or draw on the Deposit Letter of Credit in its full amount), seek a legal claim for any damages incurred and/or an equitable remedy to enforce the terms of this Agreement.
If this Agreement is terminated by Seller pursuant to Section 10.1(d), upon Buyer's receipt of a counterpart of the Release executed by Seller, Buyer and Seller shall instruct the Escrow Agent to release the Deposit Letter of Credit to Seller.
Notwithstanding anything to the contrary contained herein or in the Deposit Letter, any balance remaining in the Project Operating Account as of such execution date may be disbursed to the Agency towards the payment of Redeveloper’s obligation under this Section 2.2.
On the Closing Date, the Borrower shall establish the Deposit L/C Loan Collateral Account for the purpose of cash collateralizing the Borrower’s obligations to the Deposit Letter of Credit Issuer in respect of the Deposit Letters of Credit.
If this Agreement is terminated either by Buyer or Seller pursuant to any provision of Section 10.1 other than a termination by Seller pursuant to Section 10.1(d), then, Buyer and Seller shall instruct the Escrow Agent to release the Deposit Letter of Credit to Buyer.