Common use of Credit Enhancement Fees Clause in Contracts

Credit Enhancement Fees. With respect to each Credit Enhancement provided by Lender hereunder, Borrower agrees to pay Lender a fee accruing at a rate per annum equal to two and one-half percent (2.5%) of the maximum Credit Enhancement Contingent Liabilities of Borrower to Lender outstanding from time to time under each such Credit Enhancement, payable in arrears (A) on the first day of each calendar month commencing on the first such day following the issuance of each such Credit Enhancement and (B) on the Termination Date; provided, that the fee accruing on the portion of the aggregate Credit Enhancements Contingent Liabilities that is equal to the Deposited Cash Collateral shall be equal to one and a quarter percent (1.25%), provided, further, that during the continuance of an Event of Default, all of such fees shall be increased by two percent (2%) per annum and shall be payable on demand.