- 16 -
ciary;10 and (3) Partnership collaterally assigned the Partner-
ship letter of credit to CIBC.
The lease agreement recited that BCE, as lessee of Republic
Plaza, "has delivered" the Partnership letter of credit with an
expiry date of June 30, 1989, in order to secure BCE's obliga-
tions under that agreement, including its obligation to remit the
basic rent in the amounts and on the dates specified in the rent
payment schedule.11 The lease agreement further recited that
Partnership could assign the Partnership letter of credit to CIBC
as collateral and that, as of June 14, 1988, Partnership had
collaterally assigned its rights in that letter of credit to
CIBC. Partnership directed BCE in the lease agreement to deliver
the Partnership letter of credit and any extension or replacement
thereof directly to CIBC to be held as collateral on behalf of
Partnership.
10 The Partnership letter of credit that BCE delivered to Part-
nership expired on Mar. 1, 1989, and was deemed automatically
extended without amendment for 1 year from that or any future
expiration date until no later than June 30, 1991 (unless CIBC
notified Partnership and BCE at least 50 days prior to any such
expiration date that it decided not to extend the Partnership
letter of credit).
11 Pursuant to the lease agreement, at least 40 days prior to
Dec. 31, 1988, Dec. 31, 1989, and Dec. 31, 1990, respectively,
BCE was required to deliver to Partnership an extension or
replacement of the Partnership letter of credit, or of any such
extension or replacement, in an amount prescribed in the lease
agreement. Each such extension or replacement was to have an
expiry date that occurred no earlier than 30 days and no later
than 60 days after Dec. 31, 1988, Dec. 31, 1989, Dec. 31, 1990,
and Apr. 30, 1991, respectively.
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