Common use of Collateral Coverage Clause in Contracts

Collateral Coverage. At all times the Current Market Value of the Pledged Investment Property and/or Letter of Credit must equal or exceed the greater of (i) the amount required under the Order, or (ii) the principal amount of the Obligations (the “Required Value”). In the event Pledgor, Secured Party or the Safekeeping Agent determines that the Current Market Value of the Pledged Investment Property and/or Letter of Credit is less than the Required Value, Pledgor shall either (i) deposit in the Pledged Account additional Eligible Asset Securities sufficient to cause the Current Market Value of the Pledged Investment Property to be at least equal to the Required Value or (ii) post a Letter of Credit or increase a current Letter of Credit in an amount sufficient to cause the Current Market Value of the Pledged Collateral to be at least equal to the Required Value by noon (prevailing eastern time) on the Business Day following the date of such deficiency determination. In the event Pledgor determines that the Current Market Value of the Pledged Collateral exceeds the Required Value, Pledgor, only upon written authorization from Secured Party, shall be entitled to withdraw from the Pledged Account a portion of the Pledged Investment Property having a Current Market Value not greater than the amount of the excess of the Required Value, and Secured Party’s security interest in such withdrawn Pledged Investment Property shall terminate and be released without the necessity of any further action on the part of Pledgor, Secured Party, or the Safekeeping Agent; and/or reduce any Letter of Credit in an amount not greater than the amount in excess of the Required Value.