Drawing under Letters of Credit Sample Clauses

The "Drawing under Letters of Credit" clause defines the process and conditions under which a beneficiary can request payment from a letter of credit issued by a bank. Typically, this involves the beneficiary presenting specified documents, such as shipping receipts or invoices, to the issuing or confirming bank to demonstrate compliance with the terms of the credit. This clause ensures that payment is only made when contractual obligations are met, thereby providing security to both the buyer and the seller in international trade transactions.
Drawing under Letters of Credit. In the event of any request for a drawing under any Letter of Credit, the Borrower shall reimburse the Operating Lender on demand by the Operating Lender, in the relevant currency, an amount, in same day funds, equal to the amount of such drawing (for greater certainty, failure to reimburse the Operating Lender as provided in this sentence shall not constitute a Default or Event of Default). If the Borrower does not (i) make any payment required by the preceding sentence from the proceeds of an Accommodation obtained under this Agreement or otherwise, or (ii) notify the Operating Lender prior to 1:00 p.m. (Toronto time) on the second Banking Day following receipt by the Borrower of the notice from the Operating Lender referred to in the first sentence of this paragraph that the Borrower intends to reimburse the Operating Lender for the amount of such drawing with funds other than the proceeds of Advances: (i) the Borrower shall be deemed to have given a Notice of Borrowing to the Operating Lender to make a Canadian Prime Rate Loan or U.S. Base Rate Loan (irrespective of whether any other applicable conditions precedent specified herein have been satisfied), having regard to the currency of the applicable Letter of Credit, on the third Banking Day following the date on which such notice is provided by the Operating Lender to the Borrower in an amount equal to the amount of such drawing; and (ii) subject to the terms and conditions of this Agreement (including those set forth in Article 6), the Operating Lender shall, on the next Banking Day following the date of such drawing, make such Advance in accordance with Article 3 and it shall apply the proceeds thereof to the reimbursement of the Operating Lender for the amount of such drawing. The Borrower agrees to accept each such Canadian Prime Rate Loan or U.S. Base Rate Loan, as applicable, and hereby irrevocably authorizes and directs the Operating Lender to apply the proceeds thereof in payment of the liability of the Borrower with respect to such required payment.
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Drawing under Letters of Credit. (i) In the event of any request for a drawing under any Letter of Credit, the Borrower shall reimburse the Operating Lender in respect thereof upon demand by the Operating Lender, in the relevant currency, an amount, in same day funds, equal to the amount of such drawing (the “LC Outstandings”) (provided that, for greater certainty, failure to reimburse the Operating Lender as provided in this sentence shall not constitute a Default or Event of Default). (ii) If the Borrower does not pay to the Operating Lender sufficient funds to repay the LC Outstandings in full immediately on demand by the Operating Lender as a reimbursement to the Operating Lender for the payment made by it pursuant to such Letter of Credit, the Borrower will be deemed to have requested the Advance of a Canadian Prime Rate Loan or U.S. Base Rate Loan, as the case may be, depending on the currency of such Letter of Credit, in the amount of the LC Outstandings under the Operating Facility (in respect of Letters of Credit issued by the Operating Lender) or the Syndicated Facility and such deemed Advance shall immediately be made and the Operating Lender (in the case of Letters of Credit issued under the Operating Facility) or the Agent, as applicable, shall apply the proceeds thereof to the reimbursement of the Operating Lender.
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Drawing under Letters of Credit. Notwithstanding anything to the contrary, the City acknowledges that the City is authorized to draw upon the Ridge Road Letter of Credit, the ROW Letter of Credit and the Landscape Letters of Credit only in the event Developer fails to timely perform its obligations and construct the applicable improvements secured by the applicable letter of credit. M:\5000\5900\5952 Arvada Ridge\5952.003 Land Purchase\Development Agreement with City\Development Agreement 2017041920170421-1 BEC.doc DATED TO BE EFFECTIVE AS OF THE EFFECTIVE DATE DESCRIBED IN SECTION 48
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Drawing under Letters of Credit. Notwithstanding anything to the contrary, tThe City acknowledges that the City is authorized to draw upon the Ridge Road Letter of Credit, the ROW Letter of Credit and the Landscape Letters of Credit only in the event Developer fails to timely perform its obligations and construct the applicable improvements secured by the applicable letter of credit, except as otherwise provided below. The Parties acknowledge and agree that it is their intent that the terms of these Letters of Credit, either as originally issued or as extended, cover the full Warranty Period or Escrow Period, as applicable, and that, Furthermore, in the event the City receives a notice of non-renewal (a “Non-Renewal Notice”) of any of these Letters of Credit from the issuing lender (thereby causing the term of such Letter of Credit to be contrary to the terms of this Agreementintent as expressed herein), (i) the City shall provide prompt written notice to Developer (the “Notice to Developer”) of such Non-Renewal Notice, and (ii) Developer, within thirty (30)fifteen (15) days following receipt of the Notice to Developer, shall deliver to the City a substitute Letter of Credit complying with ▇▇▇▇▇▇▇▇▇’s letter of credit obligations to the City with respect to the applicable work. In the event Developer is required under this Section 51 to deliver to the City a substitute letter of credit (or escrow required funds) and fails to do so in a timely manner, the City shall be entitled to draw on the then current applicable Landscape Letter of Credit to the extent required to secure performance of the outstanding applicable landscape work. [Signatures appear on following pages] M:\5000\5900\5952 Arvada Ridge\5952.003 Land Purchase\Development Agreement with City\Development Agreement 20170502-1 BEC.doc ▇▇▇▇ ▇▇▇▇▇▇▇▇▇, Community Development Director ATTEST: APPROVED AS TO FORM: ▇▇▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇, City Attorney City Clerk By: By: AKR-GP, LLC, a Texas limited liability company, its Managing Member By: Name: Title: STATE OF TEXAS ) ) ss. COUNTY BEXAR ) The foregoing was acknowledged before me this day of 2017, by as of AKR-GP, LLC, a Texas limited liability company, in its capacity as Managing Member of Gateway at Arvada Ridge, LLC, a Texas limited liability company, on behalf of said companies. Administrative Agent for itself and certain other lenders By: Name: Title: STATE OF TEXAS ) ) ss. COUNTY BEXAR ) The foregoing was acknowledged before me this day of 2017, by as of TEXAS CAPITAL BANK, Nation...
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Drawing under Letters of Credit. Upon occurrence of a Drawing Event, the Agent may, and upon the instruction of the Required Lenders shall, draw under the Letters of Credit. Such drawings shall be made under each Letter of Credit PRO RATA on the basis of the relative undrawn amounts thereof. The Agent shall promptly notify each Lender of a drawing under the Letters of Credit.
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Related to Drawing under Letters of Credit

  • New Letters of Credit So long as any Lender is a Defaulting Lender, no Issuing Bank shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

  • Requesting Letters of Credit (a) Borrower must make written application for any Letter of Credit or amendment or extension of any Letter of Credit at least 5 Business Days (or such shorter period as LC Issuer may in its discretion from time to time agree) before the date on which Borrower desires for LC Issuer to issue such Letter of Credit. By making any such written application, unless otherwise expressly stated therein, Borrower shall be deemed to have represented and warranted that the LC Conditions described in Section 2.9 will be met as of the date of issuance of such Letter of Credit. Each such written application for a Letter of Credit must be made in writing in the form customarily used by LC Issuer, the terms and provisions of which are hereby incorporated herein by reference (or in such other form as may mutually be agreed upon by LC Issuer and Borrower). (b) If Borrower so requests in any applicable LC Application, LC Issuer may, in its discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit LC Issuer to prevent any such extension at least once in each 12 month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such 12 month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by LC Issuer, Borrower shall not be required to make a specific request to LC Issuer for any such extension. Once an Auto-Extension Letter of Credit has been issued, Lenders shall be deemed to have authorized (but may not require) LC Issuer to permit the extension of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Termination Date; provided, however, that LC Issuer shall not permit any such extension if (i) LC Issuer has determined that it would not be permitted, or would have no obligation at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of Section 2.9 or otherwise), or (ii) it has received notice (which notice may be by telephone or in writing) on or before the day that is 5 Business Days before the Non-Extension Notice Date (1) from Administrative Agent that Majority Lenders have elected not to permit such extension or (2) from Administrative Agent, any Lender or Borrower that one or more of the applicable conditions specified in Section 4.2 is not then satisfied, and in each such case directing LC Issuer not to permit such extension. (c) Two Business Days after the LC Conditions for a Letter of Credit have been met as described in Section 2.9 (or if LC Issuer otherwise desires to issue such Letter of Credit earlier), LC Issuer will issue such Letter of Credit at LC Issuer’s office in Denver, Colorado. If any provisions of any LC Application conflict with any provisions of this Agreement, the provisions of this Agreement shall govern and control. Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with Borrower’s instructions or other irregularity, Borrower will immediately notify LC Issuer. (d) Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary of Borrower, Borrower shall be obligated to reimburse LC Issuer hereunder for any and all drawings under such Letter of Credit. Borrower hereby acknowledges that the issuance of Letters of Credit for the account of such Subsidiaries inures to the benefit of Borrower, and that Borrower’s business derives substantial benefits from the businesses of such Subsidiaries. (e) Unless otherwise agreed by Administrative Agent, each LC Issuer shall report in writing to Administrative Agent (i) on or prior to each Business Day on which such LC Issuer issues, amends, renews or extends any Letter of Credit, the date of such issuance, amendment, renewal or extension, and the currencies and face amounts of the Letters of Credit issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal or extension (and whether the amounts thereof shall have changed), it being understood that such LC Issuer shall not effect any issuance, renewal, extension or amendment resulting in an increase in the aggregate amount of the Letters of Credit issued by it without first obtaining written confirmation from Administrative Agent that such increase is then permitted under this Agreement, (ii) on each Business Day on which such LC Issuer makes any payment under any draw made under any Letter of Credit, the date, currency and amount of such payment, (iii) on any Business Day on which Borrower fails to reimburse any Matured LC Obligation required to be reimbursed to such LC Issuer on such day, the date of such failure and the currency and amount of such Matured LC Obligation, and (iv) on any other Business Day, such other information as Administrative Agent shall reasonably request as the Letters of Credit issued by such LC Issuer.

  • New Swingline Loans/Letters of Credit So long as any Lender is a Defaulting Lender, (i) the Swingline Lender shall not be required to fund any Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan and (ii) no Issuing Lender shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.

  • Letters of Credit During the period that is at least ten (10) Business Days prior to the end of the Revolving Credit Commitment Period, subject to the terms and conditions hereof, the Issuing Bank agrees to issue Letters of Credit for the account of the Borrower; provided, (i) each Letter of Credit shall be denominated in Dollars; (ii) the stated amount of each Letter of Credit shall not be less than $100,000 or such lesser amount as is acceptable to Issuing Bank; (iii) after giving effect to such issuance, in no event shall (x) the Outstanding Amount of the Revolving Credit Loans, L/C Obligations and Swing Line Loans exceed the Revolving Credit Commitments then in effect and (y) the Outstanding Amount of the L/C Obligations exceed the L/C Sublimit; and (v) in no event shall any standby Letter of Credit have an expiration date later than the earlier of (1) ten (10) Business Days prior to the Revolving Credit Maturity Date (the “Letter of Credit Expiration Date”) (unless such Letter of Credit is Cash Collateralized) and (2) the date which is one year from the date of issuance of such standby Letter of Credit. Subject to the foregoing, the Issuing Bank may agree that a standby Letter of Credit will automatically be extended for one or more successive periods not to exceed one year each, unless the Issuing Bank elects not to extend for any such additional period; provided, the Issuing Bank shall not be required to extend any such Letter of Credit if it has received written notice from the Administrative Agent or any Loan Party that an Event of Default has occurred and is continuing at least seven (7) days prior to the time the Issuing Bank must elect to allow such extension; provided further, if any Lender is a Defaulting Lender, the Issuing Bank shall not be required to issue any Letter of Credit unless either (i) such Defaulting Lender’s participation in such Letter of Credit can be reallocated among the Non-Defaulting Lenders in accordance with their Pro Rata Shares (calculated without regard to such Defaulting Lender’s Revolving Credit Commitment) as provided in Section 2.22(a)(iv) or (ii) the Borrower Cash Collateralizes the Issuing Bank’s Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to Section 2.22(a)(iv) and any Cash Collateral provided by such Defaulting Lender) or the Issuing Bank has otherwise entered into arrangements satisfactory to it and the Borrower to eliminate the Issuing Bank’s risk with respect to the participation in such Letter of Credit of the Defaulting Lender.

  • Outstanding Letters of Credit On the effective date of such increase, each Increasing Lender and each New Lender (i) will be deemed to have purchased a participation in each then outstanding Letter of Credit equal to its Ratable Share of such Letter of Credit and the participation of each other Lender in such Letter of Credit shall be adjusted accordingly and (ii) will acquire (and will pay to the Administrative Agent, for the account of each Lender, in immediately available funds, an amount equal to) its Ratable Share of all outstanding Participation Advances.