Continuing Letters of Credit Clause Samples
The Continuing Letters of Credit clause establishes the ongoing obligation of a party, typically a borrower, to maintain one or more letters of credit in favor of another party, such as a lender or beneficiary, throughout the duration of an agreement. This clause specifies the conditions under which the letters of credit must be issued, renewed, or replaced, and may outline requirements regarding their amounts, expiration dates, and the financial institutions involved. Its core practical function is to ensure that the beneficiary has a reliable and uninterrupted form of financial security or guarantee, thereby mitigating the risk of non-payment or default during the contractual relationship.
Continuing Letters of Credit. Schedule 5.20 is a true and complete list, by reference to the aggregate face amounts of letters of credit issued by the Persons listed thereon that are 73 67 also Lenders (but which are not designated as Issuing Banks pursuant to clause (a) or the last sentence of the definition of Issuing Bank) of letters of credit issued by such Persons outstanding as of the dates set forth in such Schedule.
Continuing Letters of Credit. Each Letter of Credit Issuer (in its capacity as a Letter of Credit Issuer under (and as defined in) the Credit Agreement, and as a Letter of Credit Issuer under the Amended Credit Agreement), the Credit Parties, the Incremental Revolving Lenders and the Administrative Agent each hereby agree that each “Letter of Credit” issued by the Letter of Credit Issuers under (and as defined in) the Credit Agreement that remains outstanding on the Seventh Amendment Effective Date shall be deemed to have been issued pursuant to the Amended Credit Agreement, and from and after the Seventh Amendment Effective Date shall be a “Letter of Credit” subject to, and governed by, the terms and conditions of the Amended Credit Agreement; provided, however, that in no event shall the Letter of Credit Obligations applicable to any Letter of Credit Issuer exceed the Letter of Credit Commitment of such Letter of Credit Issuer (as set forth on Schedule 1.1(a) hereto).
Continuing Letters of Credit. (a) On and after the Effective Date, the Letters of Credit issued under the Existing Agreement listed on Schedule 2.8 (the “Continuing Letters of Credit”) shall be deemed to be Tranche A Letters of Credit issued under this Agreement for all purposes, including for purposes of the fees to be collected pursuant to Section 2.15 and reimbursement of costs and expenses to the extent provided herein.
(b) On the Effective Date, the Risk Participation of each Lender in the Continuing Letters of Credit which, as shown on Schedule 2.8, were issued by the Fronting Bank (the “Fronted Letters of Credit”) on behalf of BofA, Citibank, N.A. and ING Bank N.V., London Branch (the “Existing Issuers”) shall be equal to each Lender’s Percentage and the Risk Participation of each Lender in the Continuing Letters of Credit which, as shown on Schedule 2.8, were issued by the Existing Issuers on a several liability basis (the “Several Letters of Credit”) shall be equal to each Lender’s Percentage.
(c) On the Effective Date, each Existing Issuer shall be deemed to have sold and transferred to the Lenders, and each Lender shall be deemed irrevocably and unconditionally to have purchased and received from each Existing Issuer, without recourse or warranty, an undivided interest and Risk Participation in each Continuing Letter of Credit and Max Re’s reimbursement obligations with respect thereto in an amount such that, after giving effect to such purchase, the obligation of each Lender in the Continuing Letters of Credit shall be equal to each Lender’s Percentage. The LC Administrator and Max Re shall promptly amend each of the Several Letters of Credit to reflect the Lenders as Issuers and the correct Percentages of the Lenders under the Several Letters of Credit.
Continuing Letters of Credit. All Continuing Letters of Credit shall remain outstanding hereunder on the terms set forth herein. Each Revolving Credit Lender’s risk participation in each Continuing Letter of Credit shall be determined in accordance with such Lender’s Pro Rata Percentage, as if such Continuing Letter of Credit had been issued on the Closing Date.
Continuing Letters of Credit. 43 4.18 Solvency.............................................................44 4.19
Continuing Letters of Credit. Each Letter of Credit Issuer (in its capacity as a Letter of Credit Issuer under (and as defined in) the Credit Agreement, and as a Letter of Credit Issuer under the Amended Credit Agreement), the Credit Parties, the Revolving Lenders and the Administrative Agent each hereby agree that each “Letter of Credit”
Continuing Letters of Credit. (a) On and after the Effective Date, the Letters of Credit issued under the Existing Agreement listed on Schedule 2.8 (the “Continuing Letters of Credit”) shall be deemed to be Tranche A Letters of Credit issued under this Agreement for all purposes, including for purposes of the fees to be collected pursuant to Section 2.15 and reimbursement of costs and expenses to the extent provided herein.
(b) On the Effective Date, the Risk Participation of each Lender in the Continuing Letters of Credit which, as shown on Schedule 2.8, were issued as Fronted Letters of Credit shall be equal to each Lender’s Percentage and the Risk Participation of each Lender in the Continuing Letters of Credit which, as shown on Schedule 2.8, were issued as Several Letters of Credit shall be equal to each Lender’s Percentage.
(c) The LC Administrator and Max Bermuda shall promptly amend each of the Several Letters of Credit to reflect the Lenders as Issuers and the correct Percentages of the Lenders under the Several Letters of Credit.
Continuing Letters of Credit. Each Letter of Credit Issuer (in its capacity as a Letter of Credit Issuer under (and as defined in) the Credit Agreement, and as a Letter of Credit Issuer under the Amended Credit Agreement), the Credit Parties, the Revolving Lenders and the Administrative Agent each hereby agree that each “Letter of Credit” issued by the Letter of Credit Issuers under (and as defined in) the Credit Agreement that remains outstanding on the Fourth Amendment Effective Date shall be deemed to have been issued pursuant to the Amended Credit Agreement, and from and after the Fourth Amendment Effective Date shall be a “Letter of Credit” subject to, and governed by, the terms and conditions of the Amended Credit Agreement; provided, however, that in no event shall the Letter of Credit Obligations applicable to any Letter of Credit Issuer exceed the Letter of Credit Commitment of such Letter of Credit Issuer (as set forth on Schedule 1.1(a) hereto).
Continuing Letters of Credit. All Continuing Letters of Credit shall be deemed to have been issued pursuant hereto as a Letter of Credit by the applicable Issuing Bank set forth on Schedule 1, and from and after the Closing Date shall be subject to and governed by the terms and conditions hereof as a Letter of Credit.
Continuing Letters of Credit. On and after the Amendment Effective Date, the Letters of Credit listed on Schedule 2.7 (the “Continuing Letters of Credit”) shall be deemed to be Letters of Credit issued under this Agreement for all purposes, including for purposes of the fees to be collected pursuant to Section 2.14 and reimbursement of costs and expenses to the extent provided herein. On the Amendment Effective Date, the Risk Participation of each Lender in the Continuing Letters of Credit which, as shown on Schedule 2.7, were issued by the Fronting Bank on behalf of the Lenders (the “Fronted Letters of Credit”) shall be equal to each Lender’s Percentage.