Application For Advance and such other information and documents
regarding the Advance or the purpose for the Advance as Administrative Agent may
reasonably request.
With respect to a Real Estate Advance, Borrower shall
deliver to Administrative Agent not less than three (3) Business Days prior to
the proposed date of the Real Estate Advance, information and documents
identified in the Application for Advance and relating to the real property to
be purchased with the proceeds of such Real Estate Advance.
2.4
LETTERS OF CREDIT.
(A)
SUBJECT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, THE
ADMINISTRATIVE AGENT, ON BEHALF OF THE LENDERS, AGREES TO ISSUE FOR THE ACCOUNT
OF THE BORROWER DURING THE PERIOD FROM AND INCLUDING THE EFFECTIVE DATE TO, BUT
EXCLUDING, THE DATE THIRTY (30) DAYS PRIOR TO THE MATURITY DATE, ONE OR MORE
STANDBY LETTERS OF CREDIT (EACH A "LETTER OF CREDIT") UP TO A MAXIMUM AGGREGATE
STATED AMOUNT AT ANY ONE TIME OUTSTANDING NOT TO EXCEED $5,000,000.00 AS SUCH
AMOUNT MAY BE REDUCED FROM TIME TO TIME IN ACCORDANCE WITH THE TERMS HEREOF (THE
"L/C COMMITMENT AMOUNT").
(B)
AT THE TIME OF ISSUANCE, THE AMOUNT, FORM, TERMS AND CONDITIONS OF
EACH LETTER OF CREDIT, AND OF ANY DRAFTS OR ACCEPTANCES THEREUNDER, SHALL BE
SUBJECT TO REASONABLE APPROVAL BY THE ADMINISTRATIVE AGENT AND THE BORROWER.
NOTWITHSTANDING THE FOREGOING, IN NO EVENT MAY (I) THE EXPIRATION DATE OF ANY
LETTER OF CREDIT EXTEND BEYOND THE MATURITY DATE, (II) ANY LETTER OF CREDIT HAVE
AN INITIAL DURATION IN EXCESS OF ONE YEAR, OR (III) ANY LETTER OF CREDIT CONTAIN
AN AUTOMATIC RENEWAL PROVISION.
THE INITIAL STATED AMOUNT OF EACH LETTER OF
CREDIT SHALL BE AT LEAST $100,000.00.
IN THE EVENT THE MATURITY DATE SHALL BE
ACCELERATED PRIOR TO THE EXPIRATION OF A LETTER OF CREDIT, ALL OUTSTANDING
LETTERS OF CREDIT SHALL BE DEEMED TO BE IMMEDIATELY DUE AND PAYABLE; BORROWER
SHALL IMMEDIATELY DEPOSIT WITH ADMINISTRATIVE AGENT CASH OR ACCEPTABLE CASH
EQUIVALENTS EQUAL TO THE UNDRAWN BALANCE OF ANY SUCH OUTSTANDING LETTER OF
CREDIT, WITH SAID DEPOSIT TO BE COLLATERAL SECURITY (PURSUANT TO A SECURITY
AGREEMENT ACCEPTABLE IN FORM TO ADMINISTRATIVE AGENT) FOR ALL OBLIGATIONS OF
BORROWER UNDER THE LOAN.
(C)
THE BORROWER SHALL GIVE THE ADMINISTRATIVE AGENT WRITTEN NOTICE AT
LEAST 5 BUSINESS DAYS PRIOR TO THE REQUESTED DATE OF ISSUANCE OF A LETTER OF
CREDIT, SUCH NOTICE TO DESCRIBE IN REASONABLE DETAIL THE PROPOSED TERMS OF SUCH
LETTER OF CREDIT AND THE NATURE OF THE TRANSACTIONS OR OBLIGATIONS PROPOSED TO
BE SUPPORTED BY SUCH LETTER OF CREDIT, AND IN ANY EVENT SHALL SET FORTH WITH
RESPECT TO SUCH LETTER OF CREDIT THE PROPOSED (I) INITIAL STATED AMOUNT, (II)
THE BENEFICIARY, AND (III) EXPIRATION DATE. THE BORROWER SHALL ALSO EXECUTE AND
DELIVER SUCH CUSTOMARY APPLICATIONS AND AGREEMENTS FOR STANDBY LETTERS OF
CREDIT, AND OTHER FORMS AS REQUESTED FROM TIME TO TIME BY THE ADMINISTRATIVE
AGENT.
PROVIDED THE BORROWER HAS GIVEN THE NOTICE PRESCRIBED BY THE FIRST
SENTENCE OF THIS SUBSECTION AND DELIVERED SUCH APPLICATION AND AGREEMENTS
REFERRED TO IN