Reserve Requirement. A reserve requirement is due and payable upon execution of this Agreement. An irrevocable letter of credit, in a form acceptable to MAC, is acceptable in guaranteeing the reserve requirement. The reserve requirement shall be automatically renewed each year by Mesaba and is required in advance for each year during the term of this Agreement and shall be provided to MAC thirty (30) days prior to the expiration of the previous letter of credit. The amount of the reserve requirement is equal to three (3) months rent, to be calculated as the sum of 1 and 2:
Appears in 2 contracts
Sources: Aircraft Hangar Facility Lease (Mesaba Holdings Inc), Aircraft Hangar Facility Lease (Mesaba Holdings Inc)