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§307 Method of Shea's Advance of Agency's Acquisition Budget Prior to Agency's commencement of acquisition of thc Acquisition Parcels, whether by negotiation or eminent domain, Shca shall fund the Acquisition Budget as follows: A. Method ofShea's Advance. In accordance with the Schedule of Performance, Shea shall deliver to Agency in the aggregate amount of the Acquisition Budget: (I) one (1) or more unconditional, irrevocable letters of credit (the "Letters of Credit"), (2) cash or a cashier's check payable to Agency or wire transfer funds (the "Cash Deposit"), or (3) a combination of the Letters of Credit or Cash Deposit as more particularly set forth below. 1. Shea's Letters of Credit. The Letters of Credit shall be issued by financial institutions acceptable to Agency, shall bear an expiration date of not less than one (1) year from issuance, and shall be in'a form reasonably approved by Agency. The Letters of Credit shall, if necessary, be renewed or new Letters of Credit delivered to Agency at least thirty (30) days prior to their expiration. Ifa required renewal or substitution has not occurred, Agency shall have the fight to draw the entire balance of the Letters of Credit and hold and use the funds for the purposes specified herein. 2. Shea's Cash Deposit. In lieu of Letters of Credit and provided that the total amount of the Acquisition Budget is delivered to Agency, Shea, in its sole discretion, may make the Cash Deposit. Such Cash Deposit shall be deposited in the account of Agency in an interest-bearing bank account or trust company mutually acceptable to Shea and Agency and upon terms and conditions consistent with the provisions of this section and mutually acceptable to Shea and Agency. 3. Combination of Letters of Credit and Cash Deposit. In the event S hea elects to fund the Acquisition Budget with a combination of the Letters o f Credit and Cash Deposit, Shea shall follow the procedures set forth more particularly in Section 307(A)(1 ) and (2) hereof. Any amounts of the Letters of Credit or Cash Deposit remaining after payment of the total acquisition costs for the purchase of the Acquisition Parcels, including any interest earned on the applicable Cash Deposit, shall be returned to Shea. B. Shea's Advance of Excess Acquisition Costs. In the event the Acquisition Budget is insufficient for purposes of acquiring the Acquisition Parcels, Agency shall notify Shea that the Acquisition Budget needs to be supplemented by the amount of such insufficiency (the "Excess Acquisition Costs"). Shea may at its option, and subject to Section 307(D) below, advance to Agency the funds for the Excess Acquisition Costs. In the event that Shea elects to fund an Excess Acquisition Cost, the Acquisition Budget shall be increased automatically with respect to the corresponding Acquisition Parcel which is subject to such Excess Acquisition Cost. If applicable, the Acquisition Budget for the entire Shea Project Site shall also be increased automatically to reflect the approved increase in the Excess Acquisition Cost. In the event Shea does not terminate this Agreement pursuant to Section 307(D) below, and elects to fund the Excess Acquisition Costs, Shea shall within thirty (30) days following receipt of written notice from Agency of such insufficiency, supplement the Letters of Credit or Cash i1 wc-21875