Common use of Escrow of Deposit Clause in Contracts

Escrow of Deposit. With respect to the Deposit, Escrowee is instructed as follows: (a) Upon the Closing, the Cash Deposit shall be paid over to Seller and any Letter of Credit shall be delivered to Purchaser upon payment by Purchaser to Seller of the Purchase Price. (b) (i) Escrowee shall draw the full proceeds under any Letter of Credit if (A) Escrowee shall receive a written statement signed by Seller as follows: "Purchaser has defaulted in its obligations under that certain Contract of Sale dated July 7, 1997"; or (B) the Letter of Credit will expire by its terms within thirty (30) days. Escrowee shall promptly upon receipt forward a copy of Seller's statement to Purchaser. Any such proceeds paid to and received by Escrowee shall be treated and disposed of hereunder as Cash Deposit.