Common use of Security for Debt Clause in Contracts

Security for Debt. Each Letter of Credit delivered under this Agreement shall be additional security for the payment of the Loan and all sums payable with respect to the Loan under this Agreement and the other Loan Documents. While a Default exists, Administrative Agent for the benefit of the Lenders shall have the right, at its option, to draw on any Letter of Credit and to apply all or any part thereof to the payment of interest, principal and all other sums payable with respect to the Obligations under this Agreement or the other Loan Documents in such order, proportion or priority as Administrative Agent may determine or to hold such proceeds as security for the Loan.