Letter of Credit as Security. Concurrent with the execution of this ---------------------------- Lease, Tenant shall deliver to Landlord the Letter of Credit (as defined in Section 4.2 below) in the amount of One Million Eight Hundred Seventy-Five Thousand Dollars ($1,875,000), which Letter of Credit shall secure the full and faithful performance of each and every provision and condition of this Lease to be performed by Tenant. The amount of the Letter of Credit shall be reduced to Seven Hundred Fifty Thousand Dollars ($750,000) on February 1, 2002 if Tenant's net worth on such date (determined in accordance with generally accepted accounting principals ("GAAP")) exceeds Twenty Million Dollars ($20,000,000) and (ii) the amount of the Letter of Credit shall be further reduced to Three Hundred Seventy-Five Thousand Dollars ($375,000) on February 1, 2003 if Tenant's net worth on such date (determined in accordance with GAAP) continues to exceed Twenty Million Dollars ($20,000,000). There shall be no further reduction in the stated amount of the Letter of Credit from and after February 1, 2003. The face amount of the Letter of Credit (as reduced above from time to time upon satisfaction of the foregoing conditions) is hereafter referred to as the "Face Amount". Anything contained in this Article 4 to the contrary notwithstanding, the Face Amount of the Letter of Credit shall not be reduced if Tenant has previously committed an uncured default under this Lease. If an Event of Default occurs under this Lease (including but not limited to an Event of Default with respect to the obligation to pay Rent or to clean and restore the Premises upon termination of the Lease), Landlord may, but shall not be required to, draw upon the Letter of Credit for the payment of any Rent, interest, late charges or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of the Event of Default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of the Event of Default, including, without limitation, costs and reasonable attorneys' fees incurred by Landlord to collect on the Letter of Credit and/or to recover possession of the Premises following an Event of Default by Tenant hereunder. Tenant shall cause the Letter of Credit to remain in effect during the entire Term of this Lease and for an additional period of sixty (60) days following the expiration or earlier termination of this Lease. If Tenant fai...

Letter of Credit as Security. Subject to the provisions of this Section 3.1 and Section 16 hereof, Purchaser shall deliver to Sellers, on or prior to the date hereof (as to which date time shall be of the essence), a "clean" unconditional and irrevocable standby letter of credit (the "Letter of Credit") for the account of Purchasers, naming Sellers as the beneficiaries thereunder, for a term of not less than six (6) months, issued by and drawn on a commercial bank that is a member of the New York Clearinghouse Association (a "Qualified Bank"), in the amount of Five Million Dollars ($5,000,000). If the Final Date (as such term is defined in the Settlement Agreement) does not occur on or prior to October 23, 1998, then Purchaser shall have the right to reduce the aforesaid amount of the Letter of Credit to Two Million Five Hundred Thousand Dollars ($2,500,000) until the fifth (5th) day after the date when Purchaser receives notice of the occurrence of the Final Date. If (x) Purchaser so elects to reduce the amount of the Letter of Credit, and (y) Purchaser fails to increase the amount of the Letter of Credit to Five Million Dollars ($5,000,000) on or prior to the fifth (5th) day after the date when Purchaser receives notice of the occurrence of the Final Date, then Purchaser shall be deemed to be in material default in respect of Purchaser's obligations hereunder. If (x) Purchaser so elects to reduce the amount of the Letter of Credit hereunder (and has not thereafter increased the amount of the Letter of Credit to Five Million Dollars ($5,000,000)), (y) Purchaser defaults hereunder, and (z) Sellers elect to terminate this Agreement pursuant to Section 14.1 hereof by reason of such default, then Purchaser shall pay to Sellers, simultaneously with such termination, an amount equal to Two Million Five Hundred Thousand Dollars ($2,500,000), which Sellers shall have the right to retain (in addition to the other amounts to which Sellers are entitled under Section 14.1 hereof). Sellers acknowledge that Xxxxxx Affiliate, acting alone, shall have the right to draw upon the Letter of Credit to the extent that Sellers have the right to do so under this Agreement, in which case Xxxxxx Affiliate shall pay to the other Sellers the proceeds of the Letter of Credit in accordance with the other Sellers' respective shares therein. If Xxxxxx Affiliate so draws upon the Letter of Credit, then Xxxxxx Affiliate shall indemnify the other Sellers, and hold the other Sellers harmless, from and against any and a...

Letter of Credit as Security. In lieu of making a cash security deposit to Lessor, Lessee shall, within ten (10) days after execution of this lease, deliver to Lessor and cause to be in effect during the term hereof an unconditional, irrevocable letter of credit ("LC") in a form reasonably acceptable to Lessor. The initial amount of the LC shall be $1,750,000.00. Provided that Lessee is not then in default under this lease, the LC shall remain in place until such time as Lessee can demonstrate a minimum of $75,000,000 in cash on its month-end balance sheet, at which point the LC shall be reduced to zero, provided, however, that if at any time during the term of the Lease, the cash amount on Lessee's month-end balance sheet falls below $75,000,000, Lessor shall have the right to require reinstatement of the LC in the full amount of $1,750,000.00. In the event that the LC is ever reduced to zero pursuant to the preceding sentence, Lessee shall thereafter provide Lessor with copies of Lessee's month-end balance sheets on a monthly basis by no later than the fifteenth (15th) day of each month, or as soon thereafter as such balance sheets have been prepared for Lessee's internal use. The LC shall be issued by a bank that accepts deposits, maintains accounts, has a San Francisco Bay area office that will negotiate a letter of credit, and the deposits of which are insured by the Federal Deposit Insurance Corporation. Lessee shall pay all expenses, points, or fees incurred by Lessee in obtaining the LC. Lessor shall hold the LC as security for the performance of Lessee's obligations under this lease. If, after notice and failure to cure within any applicable cure period, Lessee defaults under any provision of this lease, Lessor may, upon delivery to the issuing bank a statement that Lessee is in default hereunder beyond the expiration of applicable cure period, without prejudice to any other remedy it has, draw on that portion of the LC necessary to pay any rent or other sum in default or to compensate Lessor for any expense, loss, or damage (including reasonable attorneys' fees) that Lessor may suffer as a result of Lessee's default. If Lessor draws on any portion of the LC, Lessee shall, within five (5) business days after written demand by Lessor, either (a) deposit cash with Lessor in an amount that, when added to the amount remaining under the LC, shall equal the amount of the LC then required under this paragraph, or (b) deliver written documentation executed by the bank issuing the LC c...

Letter of Credit as Security. The second and third sentences of Section 4.1 of the Joaquin Lease are deleted in their entirety and the following sentenxxx xxx inserted in their place: "The face amount of the Joaquin Letter of Credit shall be reduced to Three Hundred Xxxxx Xhousand Dollars ($360,000) on January 1, 2002. There shall be no further reduction in the face amount of the Letter of Credit from and after January 1, 2002. Landlord and Tenant shall act reasonably and in good faith with one another and with Wells Fargo Bank to effect the foregoing reduction in the fxxx xmount of the Letter of Credit."

Letter of Credit as Security. Subtenant has delivered to Sublandlord an unconditional and irrevocable letter of credit (“Letter of Credit”) in the amount of One Hundred Twenty Five Thousand and No/100 Dollars ($125,000.00) (“Security Deposit”) in form and issued by a bank (“L-C Bank”) satisfactory to Sublandlord, as security for the full and faithful performance of every provision of this Sublease to be performed by Subtenant. The L-C Bank issuing the Letter of Credit shall be a bank that accepts deposits, maintains accounts, has a local Santa Cxxxx County office that will negotiate the letter of credit, and the deposits of which are insured by the Federal Deposit Insurance Corporation. Subtenant shall pay all expenses, points, or fees incurred by Subtenant in obtaining the Letter of Credit. The Letter of Credit shall by its terms expire not less than one year from the date issued, and shall provide for automatic one (1) year extensions unless Sublandlord is notified in writing not less than thirty (30) days prior to such expiration from the L-C Bank that the Letter of Credit will not be extended. In any event said Letter of Credit shall be renewed by Subtenant for successive periods of not less than one year each to and including the date that is thirty (30) days after the expiration date of this Sublease. The bank’s written renewal of the Letter of Credit shall in each case be delivered to Sublandlord not less than thirty (30) days prior to the expiration date of the then outstanding Letter of Credit. Subtenant’s failure to so deliver, renew (including specifically but not limited to the delivery to Sublandlord of such renewal not less than thirty (30) days prior to expiration of the Letter of Credit) and maintain such Letter of Credit, shall constitute a default under this Sublease without any further notice. Subtenant shall ensure that at all times during the term of this Sublease and for thirty (30) days after expiration of the term, an unexpired Letter of Credit in the face amount of the Security Deposit or cash in the amount of the Security Deposit shall be in the possession of Sublandlord. Failure by Subtenant to have the letter of credit renewed or deliver any replacement Letter of Credit as required above shall entitle Sublandlord to draw under the outstanding Letter of Credit and to retain the entire proceeds thereof for application as the Security Deposit under this Sublease. Subtenant shall not be entitled to interest for any period during which Sublandlord is holding cash...

Related to Letter of Credit as Security

Letter of Credit Facility 18 SECTION 3.1 ... L/C Commitment .......................................... 18 SECTION 3.2 ... Procedure for Issuance of Letters of Credit ............. 19 SECTION 3.3 ... Commissions and Other Charges ........................... 19 SECTION 3.4 ... L/C Participations ...................................... 19 SECTION 3.5 ... Reimbursement Obligation of the Borrowers ............... 20 SECTION 3.6 ...
Letter of Credit Accommodations (a) Subject to and upon the terms and conditions contained herein, at the request of Borrower, Lender agrees to provide or arrange for Letter of Credit Accommodations for the account of Borrower containing terms and conditions acceptable to Lender and the issuer thereof. Any payments made by Lender to any issuer thereof and/or related parties in connection with the Letter of Credit Accommodations shall constitute additional Revolving Loans to Borrower pursuant to this Section 2.
Letter of Credit Amounts Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.
The Letter of Credit Subfacility (a) On the terms and conditions set forth herein: (i) the Issuing Lender agrees, (A) from time to time on any Business Day during the period from the Restatement Date to the Revolving Termination Date to issue Letters of Credit for the account of the Company, and to amend Letters of Credit previously issued by it, in accordance with subsections 3.2(c) and 3.2(d), and (B) to honor drawings which comply with the terms of the Letters of Credit Issued by it; and (ii) the Revolving Lenders severally agree to participate in Letters of Credit Issued for the account of the Company; provided that the Issuing Lender shall not be obligated to Issue, and no Revolving Lender shall be obligated to participate in, any Letter of Credit if as of the date of Issuance of such Letter of Credit (the "Issuance Date") (1) the sum of the Effective Amount of all L/C Obligations plus the Effective Amount of all Revolving Loans plus the Effective Amount of all Swingline Loans exceeds the lesser of (x) the aggregate amount of all Revolving Commitments and (y) the Borrowing Base, (2) the Effective Amount of all L/C Obligations exceeds the amount of the L/C Commitment or (3) with respect to any particular Revolving Lender, the sum of the participation of such Revolving Lender in the Effective Amount of all L/C Obligations plus the outstanding principal amount of the Revolving Loans of such Revolving Lender shall exceed such Revolving Lender's Revolving Commitment. Within the foregoing limits, and subject to the other terms and conditions hereof, the Company's ability to obtain Letters of Credit shall be fully revolving, and, accordingly, the Company may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit which have expired or which have been drawn upon and reimbursed.
Letter of Credit Draw If (1) the Trustee shall have delivered a Demand Notice as provided in Section 3.5(b)(iii) of this Series Supplement and Hertz shall have failed to pay to the Trustee or deposit into the Series 2009-1 Distribution Account the amount specified in such Demand Notice in whole or in part by 12:00 noon (New York City time) on the Business Day following the making of the Demand Notice, (2) due to the occurrence of an Event of Bankruptcy (or the occurrence of an event described in clause (a) of the definition thereof, without the lapse of a period of 60 consecutive days) with respect to Hertz, the Trustee shall not have delivered such Demand Notice to Hertz or (3) there is a Preference Amount, the Trustee shall draw on the Series 2009-1 Letters of Credit, if any, by 12:00 p.m. (New York City time) on such Business Day in an amount equal to the lesser of (A) the amount that Hertz failed to pay under the Series 2009-1 Demand Note, the amount that the Trustee failed to demand for payment thereunder or the Preference Amount, as the case may be; and (B) the Series 2009-1 Letter of Credit Amount on such Business Day, by presenting to each Series 2009-1 Letter of Credit Provider a draft accompanied by a Series 2009-1 Certificate of Unpaid Demand Note Demand or, in the case of a Preference Amount, a Series 2009-1 Certificate of Preference Payment Demand; provided, however that if the Series 2009-1 Cash Collateral Account has been established and funded, the Trustee shall withdraw from the Series 2009-1 Cash Collateral Account and deposit in the Series 2009-1 Distribution Account an amount equal to the lesser of (x) the Series 2009-1 Cash Collateral Percentage on such Business Day of the lesser of the amounts set forth in clause (A) and (B) above and (y) the Series 2009-1 Available Cash Collateral Account Amount on such Business Day and draw an amount equal to the remainder of such amount on the Series 2009-1 Letters of Credit. The Trustee shall deposit, or cause the deposit of, the proceeds of any such draw on the Series 2009-1 Letters of Credit and the proceeds of any such withdrawal from the Series 2009-1 Cash Collateral Account into the Series 2009-1 Distribution Account and such proceeds shall be treated as Principal Collections.
The Letter of Credit Facility (i) Subject to the terms and conditions hereinafter set forth (A) Issuing Bank agrees, in reliance on the Agreements of the Lenders set forth in this Section (1) to issue Letters of Credit for the account of any Borrower from time to time on any Business Day during the period from the Effective Date hereof until 10 days before the Termination Date in an aggregate Available Amount for all Letters of Credit not to exceed at any time the lesser of (x) the Letter of Credit Facility at such time and (y) the Unused Revolving Credit Commitments of the Lenders at such time (provided that in no event shall the Issuing Bank be required to issue a Letter of Credit if, after giving effect to such issuance, the aggregate amount of the Revolving Credit Exposures of all Lenders shall exceed the Revolving Credit Availability at such time) and to amend or extend Letters of Credit previously issued by it in accordance with the terms of this Section 2.16, and (2) to honor drawings under the Letters of Credit, and (B) the Lenders severally agree to participate in Letters of Credit issued for the account of any Borrower and any drawings thereunder. Each request by a Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Borrowers that the issuance, extension or amendment of the Letter of Credit so requested complies with the conditions set forth in the preceding sentence. Within the foregoing limits, and subject to the terms and conditions hereof, each Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly such Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.
Letter of Credit Subfeature As a subfeature under the Line of Credit, Bank agrees from time to time during the term thereof to issue or cause an affiliate to issue standby letters of credit for the account of Borrower (each, a “Letter of Credit” and collectively, “Letters of Credit”); provided however, that the aggregate undrawn amount of all outstanding Letters of Credit shall not at any time exceed Five Hundred Thousand Dollars ($500,000.00). The form and substance of each Letter of Credit shall be subject to approval by Bank, in its sole discretion. Each Letter of Credit shall be issued for a term not to exceed Three Hundred Sixty-five (365) days, as designated by Borrower; provided however, that no Letter of Credit shall have an expiration date subsequent to the maturity date of the Line of Credit. The actual undrawn amount of all Letters of Credit shall be reserved under the Line of Credit and shall not be available for borrowings thereunder. Each Letter of Credit shall be subject to the additional terms and conditions of the Letter of Credit agreements, applications and any related documents required by Bank in connection with the issuance thereof. Each drawing paid under a Letter of Credit shall be deemed an advance under the Line of Credit and shall be repaid by Borrower in accordance with the terms and conditions of this Agreement applicable to such advances; provided however, that if advances under the Line of Credit are not available, for any reason, at the time any drawing is paid, then Borrower shall immediately pay to Bank the full amount drawn, together with interest thereon from the date such drawing is paid to the date such amount is fully repaid by Borrower, at the rate of interest applicable to advances under the Line of Credit. In such event Borrower agrees that Bank, in its sole discretion, may debit any account maintained by Borrower with Bank for the amount of any such drawing.
Letter of Credit Subfacility (a) During the Revolving Credit Commitment Period, the Borrower may request the issuance of standby Letters of Credit to support obligations of a Subsidiary of the Parent which finance the working capital and business needs of a Subsidiary of the Parent by delivering to the Issuing Bank a completed Application for letters of credit in such form and with such other certificates, documents and information as the Issuing Bank may specify from time to time by no later than 12:00 noon, Philadelphia time, at least five (5) Business Days (or such shorter period as may be agreed to by the Issuing Bank) in advance of the proposed date of issuance. Each Application for issuance of a Letter of Credit shall be accompanied by an issuance fee based upon the Issuing Bank’s standard schedule of fees charged for issuing letters of credit as such may be amended from time to time. Subject to the terms and conditions hereof and in reliance on the agreements of the other Revolving Credit Lenders set forth in this Section, the Issuing Bank will issue a Letter of Credit, provided, that each Letter of Credit shall (i) have a maximum maturity of twelve (12) months from the date of issuance, and (ii) in no event expire later than five (5) Business Days prior to the Revolving Credit Termination Date, and provided further, that in no event shall the amount of the Letter of Credit Obligations at any one time exceed the lesser of (i) the L/C Sublimit and (ii) the aggregate Revolving Credit Commitments minus the aggregate principal amount of the Revolving Credit Loans then outstanding. The Issuing Bank shall not at any time be obligated to issue any Letter of Credit hereunder if such issuance would conflict with, or cause the Issuing Bank or any Letter of Credit Participant to exceed, any limits imposed by any applicable Requirement of Law. Notwithstanding the provisions of this Section, the Revolving Credit Lenders and the Borrower hereby agree that the Issuing Bank may issue upon the Borrower’s request, one or more Letter(s) of Credit which by its or their terms may be extended for additional periods of up to one year each provided that (I) the initial expiration date (or any subsequent expiration date) of each such Letter of Credit is not later than five (5) Business Days prior to the Revolving Credit Termination Date, and (II) renewal of such Letter(s) of Credit, at the Issuing Bank’s discretion, shall be available upon written request from the Borrower to the Issuing Bank at least thirty (30) days (or such other time period as agreed by the Borrower and the Issuing Bank) before the date upon which notice of renewal is otherwise required. Each standby Letter of Credit shall be subject either to the Uniform Customs and Practice for Documentary Credits as most recently published by the International Chamber of Commerce at the time a Letter of Credit is issued (“UCP”) or the International Standby Practices (ISP98 International Chamber of Commerce Publication Number 590 (“ISP98”)), as determined by the Issuing Bank.
Letter of Credit Advances (i) The Borrower shall repay to the Administrative Agent for the account of each Issuing Bank and each other Lender that has made a Letter of Credit Advance on the same day on which such Advance was made the outstanding principal amount of each Letter of Credit Advance made by each of them.
Letter of Credit Participation See Section 4.1.4.

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