- 34 - Lessor has collaterally assigned its rights in the Letter of Credit * * * under this Section 53 to Cana- dian Imperial Bank of Commerce and in accordance with such collateral assignment, Lessor hereby directs Lessee: to deliver the initial Letter of Credit and any extension thereof or replacement therefor directly to Canadian Imperial Bank of Commerce to be held as collateral by such Bank on Lessor's behalf with a copy thereof to Lessor. Respondent alleges that specific provisions of the lease agreement required BCE to deliver to Partnership the Partnership letter of credit that was effective on June 15, 1988. It is the purchase agreement, and not the lease agreement, that required BCE to deliver that letter of credit to Partnership, although the lease agreement contemplated that such letter of credit had been delivered.20 As required by TIAA, the purchase agreement required that, as of the closing of that agreement, (1) Partnership deliver to 20 As a further illustration of certain inaccurate factual allegations made by respondent in advancing her position with respect to the Partnership letter of credit, we note that, contrary to respondent's assertion that "the time period covered by the [Partnership] letter of credit equates to the 11.5-month rent holiday claimed by the petitioner", the initial Partnership letter of credit was issued effective June 15, 1988, and had an expiry date of Mar. 1, 1989. Even if that letter of credit had had the expiry date of June 30, 1989, that was recited in the lease agreement quoted above, the period covered by it would not, contrary to respondent's assertion, "equate * * * to the 11.5- month rent holiday claimed by the petitioner", since that period of zero rent began on June 17, 1988, and ended on May 31, 1989. We also note that, contrary to certain recitations in the lease agreement quoted above, the Partnership letter of credit that was in fact delivered to Partnership and assigned to CIBC, as re- quired by the purchase agreement, was issued only by CIBC, and not by CIBC and Citicorp Real Estate, Inc.Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Next
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