On the date of such Loan or the issuance of such Letter of Credit hereunder, no Event of Default, material Default, any Default incapable of being cured or Default under Section 5.07(a) or, in the event that Additional Collateral is pledged on such date and the condition precedent set forth in Section 4.02(d) cannot be satisfied with respect to such Loan or Letter of Credit unless such Additional Collateral is pledged on such date, Section 5.12(b) (but only with respect to such Additional Collateral) shall have occurred and be continuing nor shall any such Event of Default or Default, as the case may be, occur by reason of the making of the requested Borrowing or the issuance of the requested Letter of Credit and, in the case of each Loan, the application of proceeds thereof.