Right to Draw Upon security Deposit Sample Clauses

Right to Draw Upon security Deposit. (A) Upon the occurrence of any monetary Event of Default, Landlord and its successors and assigns shall have the right to negotiate, present for payment, draw upon, use, apply or retain all or a portion of the Security Deposit for the payment of the Rent, Additional Rent or other charge, payment or sum due to Landlord from Tenant, provided in no event shall the amount of any such draw exceed the amount required to cure such monetary Event of Default. (B) Upon (i) Tenant's failure, within fifteen (15) business days after delivery of written notice to Landlord from the issuer of an LC forming all or a part of the Security Deposit that the issuer will not renew the LC, to deliver to Landlord additional Permitted Security in an amount equal to the LC which will not be renewed, or (ii) Tenant's failure, within fifteen (15) business days after written notice from Landlord that the some or all of the assets delivered to Landlord to form a part of the Security Deposit no longer meet the criteria to be considered Permitted Security (whether due to a reduction in an LC issuer's credit rating or otherwise), to deliver to Landlord additional Permitted Security sufficient to restore the Security Deposit to the Required Amount, Landlord and its successors and assigns shall have the right to negotiate, present for payment, and/or draw upon any portion of the Security Deposit (or any LC then held by Landlord and formerly constituting a part of the Security Deposit) not in the form of cash, and to hold the proceeds of such negotiation, presentment or draw (together with all cash already forming a part of the Security Deposit) as a cash Security Deposit; provided that, Tenant shall substitute additional Permitted Security for the cash so held upon Landlord's demand (in which event Landlord shall return to Tenant the portion of the cash held equal to the amount of such additional Permitted Security).