Common use of Acceleration of LC Obligations Clause in Contracts

Acceleration of LC Obligations. If the Obligations or any part thereof become immediately due and payable pursuant to Section 7.1 then, unless Majority Lenders otherwise specifically elect to the contrary (which election may thereafter by retracted by Majority Lenders at any time), all L/C Exposure shall become immediately due and payable without regard to whether or not actual drawings or payments on the Letters of Credit have occurred, and Borrower shall be obligated to pay to L/C Issuer immediately an amount equal to the aggregate L/C Exposure and Reimbursement Obligations which are then outstanding. All amounts so paid shall be applied first to Reimbursement Obligations and then held by L/C Issuer as L/C Collateral until such LC Exposure becomes Reimbursement Obligations, at which time such L/C Collateral shall be applied to such Reimbursement Obligations. Pending application thereof, all L/C Collateral shall be invested by L/C Issuer in such investments as L/C Issuer may choose in its sole discretion. All interest on such investments shall be reinvested or applied to Reimbursement Obligations. When all Obligations have been satisfied in full, including all L/C Exposure and Reimbursement Obligations, and all Letters of Credit have expired or been terminated, L/C Issuer shall release any remaining L/C Collateral to Borrower. Borrower hereby assigns and grants to L/C Issuer a continuing security interest in all L/C Collateral paid by it to L/C Issuer, all investments purchased with such L/C Collateral, and all proceeds thereof to secure its Reimbursement Obligations and its Obligations under this Agreement, the Note, and the other Loan Documents, and Borrower agrees that such L/C Collateral and investments shall be subject to all of the terms and conditions of the Security Instruments. Borrower further agrees that L/C Issuer shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as adopted in the applicable State with respect to such security interest and that an Event of Default under this Agreement shall constitute a default for purposes of such security interest. When Borrower is required to provide L/C Collateral for any reason and fails to do so on the day when required, L/C Issuer may without notice to Borrower or any other Related Person provide such L/C Collateral (whether by application of proceeds of other Collateral, by transfers from other accounts maintained with L/C Issuer, or otherwise) using any available funds of Borrower or any other Person also liable to make such payments. Any such amounts which are required to be provided as L/C Collateral and which are not provided on the date required shall, for purposes of each Security Instrument, be considered past due Obligations owing hereunder, and L/C Issuer is hereby authorized to exercise its respective rights under each Security Instrument to obtain such amounts.

Acceleration of LC Obligations. If the Obligations or any part thereof become immediately due and payable pursuant to Section 7.1 8.1 then, unless Majority Lenders otherwise specifically elect to the contrary (which election may thereafter by be retracted by Majority Lenders at any time), all L/C Exposure LC Obligations shall become immediately due and payable without regard to whether or not actual drawings or payments on the Letters of Credit have occurred, and Borrower shall be obligated to pay to L/C LC Issuer immediately an amount equal to the aggregate L/C Exposure and Reimbursement LC Obligations which are then outstanding. All amounts so paid shall be applied first to Reimbursement Obligations and then held by L/C Issuer as L/C Collateral until such 8. 9. (c) Investment of LC Exposure becomes Reimbursement Obligations, at which time such L/C Collateral shall be applied to such Reimbursement ObligationsCollateral. Pending application thereof, all L/C LC Collateral shall be invested by L/C LC Issuer in such investments Cash Equivalents as L/C LC Issuer may choose in its sole discretion. All interest on (and other proceeds of) such investments Investments shall be reinvested or applied to Reimbursement ObligationsMatured LC Obligations or other Obligations which are due and payable. When all Obligations have been satisfied in full, including all L/C Exposure and Reimbursement LC Obligations, and all Letters of Credit have expired or been terminated, L/C and all of Borrower's reimbursement obligations in connection therewith have been satisfied in full, LC Issuer shall release any remaining L/C Collateral to BorrowerLC Collateral. Borrower hereby assigns and grants to L/C LC Issuer a continuing security interest in all L/C LC Collateral paid by it to L/C LC Issuer, all investments Cash Equivalents purchased with such L/C LC Collateral, and all proceeds thereof to secure its Reimbursement Matured LC Obligations and its Obligations under this Agreement, the each Note, and the other Loan Documents, and Borrower agrees that such L/C Collateral LC Collateral, Cash Equivalents and investments proceeds shall be subject to all of the terms and conditions of the Security InstrumentsDocuments. Borrower further agrees that L/C LC Issuer shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as adopted in the applicable State of Texas with respect to such security interest and that an Event of Default under this Agreement shall constitute a default for purposes of such security interest. When Borrower is required to provide L/C Collateral for any reason and fails to do so on the day when required, L/C Issuer may without notice to Borrower or any other Related Person provide such L/C Collateral 10. 11. (whether by application of proceeds of other Collateral, by transfers from other accounts maintained with L/C Issuer, or otherwise) using any available funds of Borrower or any other Person also liable to make such payments. Any such amounts which are required to be provided as L/C Collateral and which are not provided on the date required shall, for purposes of each Security Instrument, be considered past due Obligations owing hereunder, and L/C Issuer is hereby authorized to exercise its respective rights under each Security Instrument to obtain such amounts.d)

Acceleration of LC Obligations. If the Obligations Loans, or any part thereof thereof, become immediately due and payable pursuant to Section 7.1 thenof this Agreement, unless Majority Lenders otherwise specifically elect to the contrary (which election may thereafter by retracted by Majority Lenders at any time), then all L/C Exposure LC Obligations shall become immediately due and payable without regard to whether or not for actual drawings or payments on the Letters of Credit have occurred, and Borrower shall be obligated to pay to L/C Issuer Agent immediately an amount equal to the aggregate L/C Exposure and Reimbursement Obligations which are then outstandingLC Obligations. All amounts so paid made due and payable by Borrower under this Section 2A.8 may be applied as Agent elects to any of the various LC Obligations then due and payable; provided, however, that all such amounts applied by the Agent to the LC Obligations shall be (a) first applied first to Reimbursement Obligations the Matured LC Obligations, and then (b) second held by L/C Issuer Agent as L/C Collateral security for the remaining LC Obligations (in this section all such amounts held as security for LC Obligations of Borrower are collectively called "LC COLLATERAL") until such LC Exposure becomes Reimbursement Obligations, Obligations have either (a) become Matured LC Obligations at which time such L/C the LC Collateral paid to Agent shall be applied to such Reimbursement Matured LC Obligations. Pending application thereof, all L/C or (b) have expired undrawn at which time an amount of the LC Collateral equal to such expired and undrawn LC Obligation shall be invested by L/C Issuer in such investments as L/C Issuer may choose in its sole discretion. All interest on such investments shall be reinvested or applied to Reimbursement Obligations. When all Obligations have been satisfied in full, including all L/C Exposure and Reimbursement Obligations, and all Letters of Credit have expired or been terminated, L/C Issuer shall release any remaining L/C Collateral promptly returned to Borrower. Borrower hereby assigns and grants to L/C Issuer a continuing security interest in all L/C Collateral paid by it to L/C Issuer, all investments purchased with such L/C Collateral, and all proceeds thereof to secure its Reimbursement Obligations and its Obligations This Section 2A.8 shall not limit or impair any rights which Agent or Lenders may have under this Agreement, the Note, and the other Loan Documents, and Borrower agrees that such L/C Collateral and investments shall be subject to all of the terms and conditions of the Security Instruments. Borrower further agrees that L/C Issuer shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as adopted in the applicable State with respect to such security interest and that an Event of Default under this Agreement shall constitute a default for purposes of such security interest. When Borrower is required to provide L/C Collateral for any reason and fails to do so on the day when required, L/C Issuer may without notice to Borrower or any other Related Person provide such L/C Collateral (whether by application document or agreement relating to any Letter of proceeds of other CollateralCredit or LC Obligation, by transfers from other accounts maintained with L/C Issuerincluding without limitation, or otherwise) using any available funds of Borrower or any other Person also liable to make such payments. Any such amounts which are required to be provided as L/C Collateral and which are not provided on the date required shall, for purposes of each Security Instrument, be considered past due Obligations owing hereunder, and L/C Issuer is hereby authorized to exercise its respective rights under each Security Instrument to obtain such amountsLC Application.

Acceleration of LC Obligations. If the Obligations Loans, or any part thereof thereof, become immediately due and payable pursuant to Section 7.1 thenof this Agreement, unless Majority Lenders otherwise specifically elect to the contrary (which election may thereafter by retracted by Majority Lenders at any time), then all L/C Exposure LC Obligations shall become immediately due and payable without regard to whether or not for actual drawings or payments on the Letters of Credit have occurred, and Borrower shall be obligated to pay to L/C Issuer Agent immediately an amount equal to the aggregate L/C Exposure and Reimbursement Obligations which are then outstandingLC Obligations. All amounts so paid made due and payable by Borrower under this Section 2A.8 may be applied as Agent elects to any of the various LC Obligations then due and payable; provided, however, that all such amounts applied by the Agent to the LC Obligations shall be (a) first applied first to Reimbursement Obligations the Matured LC Obligations, and then (b) second held by L/C Issuer Agent as L/C Collateral security for the remaining LC Obligations (in this section all such amounts held as security for LC Obligations of Borrower are collectively called "LC Collateral") until such LC Exposure becomes Reimbursement Obligations, Obligations have either (a) become Matured LC Obligations at which time such L/C the LC Collateral paid to Agent shall be applied to such Reimbursement Matured LC Obligations. Pending application thereof, all L/C or (b) have expired undrawn at which time an amount of the LC Collateral equal to such expired and undrawn LC Obligation shall be invested by L/C Issuer in such investments as L/C Issuer may choose in its sole discretion. All interest on such investments shall be reinvested or applied to Reimbursement Obligations. When all Obligations have been satisfied in full, including all L/C Exposure and Reimbursement Obligations, and all Letters of Credit have expired or been terminated, L/C Issuer shall release any remaining L/C Collateral promptly returned to Borrower. Borrower hereby assigns and grants to L/C Issuer a continuing security interest in all L/C Collateral paid by it to L/C Issuer, all investments purchased with such L/C Collateral, and all proceeds thereof to secure its Reimbursement Obligations and its Obligations This Section 2A.8 shall not limit or impair any rights which Agent or Lenders may have under this Agreement, the Note, and the other Loan Documents, and Borrower agrees that such L/C Collateral and investments shall be subject to all of the terms and conditions of the Security Instruments. Borrower further agrees that L/C Issuer shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as adopted in the applicable State with respect to such security interest and that an Event of Default under this Agreement shall constitute a default for purposes of such security interest. When Borrower is required to provide L/C Collateral for any reason and fails to do so on the day when required, L/C Issuer may without notice to Borrower or any other Related Person provide such L/C Collateral (whether by application document or agreement relating to any Letter of proceeds of other CollateralCredit or LC Obligation, by transfers from other accounts maintained with L/C Issuerincluding without limitation, or otherwise) using any available funds of Borrower or any other Person also liable to make such payments. Any such amounts which are required to be provided as L/C Collateral and which are not provided on the date required shall, for purposes of each Security Instrument, be considered past due Obligations owing hereunder, and L/C Issuer is hereby authorized to exercise its respective rights under each Security Instrument to obtain such amountsLC Application.