Section 260.202  Security for Allocation of Net Proceeds

The Authority may require all prospective Lenders for a Series program to deposit, as part of their Lender Applications and as security for performance of their obligations under such Series Program, a letter of credit or cash deposit in an amount not to exceed 2% of such Lender's Allocation.  The cash deposit or letter of credit shall be returned if the Lender does not participate in such Series Program.  If the Lender does participate in such Series Program, the Authority may retain from the cash deposit, or draw on the letter of credit, as the case may be, an amount proportionate to the amount of the Lender's unused Allocation as of the termination of that Series Program.