Common use of Calling on Security Clause in Contracts

Calling on Security. The COMPANY may call upon the Security Instrument posted by the Seller (i) if the Seller fails to pay amounts due to the COMPANY pursuant to this Agreement after written notice of default is provided to the Seller and any applicable cure period ends; and (ii) with respect to the Development Security, to satisfy COMPANY’s rights to such portions of the Development Security specified in Section 6.1. The foregoing notwithstanding, the Security Instrument posted by the Seller shall become due automatically, and may be called upon by the COMPANY, without prior notice or right of cure in the case of any Event of Default involving the Seller arising under Section 9.1.1.