Common use of Default Draws Clause in Contracts

Default Draws. If Lender draws under the Letter of Credit pursuant to Section 6.14(b)(i) above, Lender shall have the right to use monies drawn under the Letter of Credit for any of the following purposes: (i) to pay any amounts required to be paid by Borrower under the Loan Documents (including, without limitation, any amounts required to be paid to Lender under this Agreement); (ii) to (on such Borrower’s behalf, or on its own behalf if Lender becomes the owner of the Mortgaged Property) prepay any Note; (iii) to make improvements or repairs to any Mortgaged Property which Lender determines are necessary to ensure that the Mortgaged Property meets the requirements set forth in the Loan Documents; or (iv) to deposit monies into the Cash Collateral Account.

Default Draws. If Lender draws under the Letter of Credit pursuant to Section 6.14(b)(i6.15(b)(i) above, Lender shall have the right to use monies drawn under the Letter of Credit for any of the following purposes: (i) to pay any amounts required to be paid by Borrower under the Loan Documents (including, without limitation, any amounts required to be paid to Lender under this Agreement); (ii) to (on such Borrower’s behalf, or on its own behalf if Lender becomes the owner of the Mortgaged Property) prepay any Note; (iii) to make improvements or repairs to any Mortgaged Property which Lender determines are necessary to ensure that the Mortgaged Property meets the requirements set forth in the Loan Documents; or (iv) to deposit monies into the Cash Collateral Account.