Covenants and Agreements, Grantors. Each Grantor hereby covenants and agrees that:
Covenants and Agreements, Grantors. Each Grantor hereby covenants and agrees that: (i) by granting a Lien in its Letter of Credit Rights to the Collateral Agent, it intends to (and hereby does) assign to the Collateral Agent its rights (including its contingent rights) to the proceeds of all Related Contracts consisting of letters of credit of which it is or hereafter becomes a beneficiary or assignee; and (ii) upon the occurrence and during the continuation of an Event of Default, it will promptly upon the request of the Collateral Agent, (x) notify the issuer and each nominated person with respect to each of the Related Contracts consisting of letters of credit that the proceeds thereof have been assigned to the Collateral Agent hereunder and any payments due or to become due in respect thereof are to be made directly to the Collateral Agent or its designee, and (y) arrange for the Collateral Agent to become the transferee beneficiary of such letters of credit. Insurance.
