Examples of Landlord Letter of Credit in a sentence
Moreover, the Debtors are obligated to reimburse Citibank on account of the drawn amount of the Landlord Letter of Credit, and funds held in the Citibank Account fully collateralize such reimbursement obligations.
The Debtors cannot use the funds in the Citibank Account and are obligated to reimburse Citibank on account of the drawn amount of the Landlord Letter of Credit and pay Citibank’s Postpetition Interest, fees, and expenses, to the extent secured by the Citibank Account.
Funds in the Citibank Accountcollateralize Fisker Automotive’s reimbursement obligations under the Landlord Letter of Credit.
To satisfy the letter of credit requirement in the Lease, Pacific Capital Management, LLC (the “ LC Facilitator”), one of the Company’s existing shareholders, caused its financial institution to issue a letter of credit in the amount of $475,000 (the “Landlord Letter of Credit”) on behalf of the Company in favor of Landlord pursuant to the terms of the Landlord Letter of Credit & Warrant Issuance Agreement, dated August 28, 2018, by and between the Company and the LC Facilitator (“Landlord LOC Agreement”).
Furthermore, there is mutuality between Fisker Automotive’s indebtedness under the Landlord Letter of Credit and Citibank’s obligation to fund the draw of the Landlord Letter of Credit and its resultant claim against Fisker Automotive.