Common use of Guaranty or Letter of Credit in Lieu of Cash Deposit Clause in Contracts

Guaranty or Letter of Credit in Lieu of Cash Deposit. (a) In lieu of making cash deposits of Required Repair Funds, Tax Funds, Insurance Funds and/or Capital Expenditure Funds, Borrower may deliver to Lender one or more of the following: (i) a guaranty from Guarantor in form and substance reasonably acceptable to Lender (a “Reserve Guaranty”) or (ii) a Letter of Credit in accordance with the provisions of this Section 6.12. Borrower shall be responsible for the payment of all reasonable out-of-pocket costs and expenses incurred by the Servicer in the administration of any Letter of Credit or Reserve Guaranty delivered pursuant to this Section 6.12.