Common use of Specific Threshold Event Collateral Clause in Contracts

Specific Threshold Event Collateral. If a letter of credit is initially furnished as Loan-Specific Threshold Event Collateral and the issuer of such letter of credit at any time no longer satisfies the unsecured debt rating requirements set forth above, the applicable Loan-Specific Certificate Representative shall be required within thirty (30) days of such event to replace such original letter of credit with a replacement letter of credit from an issuer meeting the above rating requirements. If a replacement letter of credit from an issuer meeting the above requirements is not delivered to the Master Servicer (for Non-Specially Serviced Mortgage Loans) or the Special Servicer (for Specially Serviced Mortgage Loans), a Loan-Specific Control Appraisal Period will be deemed to immediately commence. The Loan-Specific Threshold Event Cure shall continue until (i) the appraised value of the related Mortgaged Property plus the value of the Loan-Specific Threshold Event Collateral is no longer sufficient to prevent a Loan-Specific Control Appraisal Period from occurring; or (ii) the occurrence of a Final Recovery Determination. Upon the written request of the Loan-Specific Certificate Representative, if the appraised value of the related Mortgaged Property, upon any redetermination thereof, is sufficient to avoid the occurrence of a Loan-Specific Control Appraisal Period without taking into consideration all or any portion of the Loan-Specific Threshold Event Collateral previously delivered by the Loan-Specific Certificate Representative of the applicable Class Loan-Specific Certificates, the portion of such Loan-Specific Threshold Event Collateral held by the Master Servicer (for Non-Specially Serviced Mortgage Loans) or the Special Servicer (for Specially Serviced Mortgage Loans) which is no longer necessary to avoid the occurrence of the Loan-Specific Control Appraisal Period shall promptly be returned to the posting Loan-Specific Certificate Representative or, if applicable, the face amount of the letter of credit shall be reduced. In each case, such reduction shall be completed at the Loan-Specific Certificate Representative’s sole expense. Upon a Final Recovery Determination with respect to the Componentized Mortgage Loan, such Loan-Specific Threshold Event Collateral shall be available to reimburse the related Pooled Component for any Loan-Specific Collateral Support Deficits allocated to the such Pooled Component pursuant to Section 4.04(a) of this Agreement, after application of the net Liquidation Proceeds, plus accrued and unpaid interest on the Pooled Component at the Pooled Component Rate and all other additional Trust Fund expenses, Servicing Fees, Special Servicing Fees, Workout Fees, Liquidation Fees and Advances (and interest thereon) relating to the Componentized Mortgage Loan reimbursable under this Agreement. Any Loan-Specific Threshold Event Collateral shall be treated as an “outside reserve fund” for purposes of the REMIC Provisions and such property (and the right to reimbursement of any amounts with respect thereto from a Trust REMIC) shall be beneficially owned by the posting Loan-Specific Certificate Representative who shall be taxed on all income or gain with respect thereto.