Draws Under Letters of Credit Sample Clauses

The "Draws Under Letters of Credit" clause defines the procedures and conditions under which a party may request payment or funds by presenting documents to a bank under a letter of credit arrangement. Typically, this clause outlines the required documentation, such as invoices or shipping receipts, and specifies the timing and method for making a draw. Its core practical function is to ensure that payments are made securely and only when contractual obligations are met, thereby reducing the risk of non-payment or disputes between parties.
Draws Under Letters of Credit. (a) At such time as the Agent shall be notified by the Issuing Bank that the beneficiary under any Letter of Credit has drawn on the same, the Agent shall promptly notify the Borrower and each Bank, by telephone or telecopy, of the amount of the draw and, in the case of each Bank, such Bank's portion of such draw amount as calculated in accordance with its Commitment Percentage. (b) The Borrower hereby agrees to immediately reimburse the Issuing Bank for amounts paid by such Issuing Bank in respect of draws under a Letter of Credit. In order to facilitate such repayment, the Borrower hereby irrevocably requests the Banks, and the Banks hereby severally agree, on the terms and conditions of this Agreement (other than as provided in ARTICLE II hereof with respect to the amounts of, the timing of requests for, and the repayment of Loans hereunder and in ARTICLE IV hereof with respect to conditions precedent to Loans hereunder), with respect to any drawing under a Letter of Credit prior to the occurrence of an event described in SECTION 9.1(J) hereof, to make a Base Rate Loan to the Borrower on each day on which a draw is made under a Letter of Credit and in the amount of such draw, and to pay the proceeds of such Loan directly to the Issuing Bank to reimburse the Issuing Bank for the amount paid by it upon such draw. The Borrower agrees to deliver to the Agent a Loan Request requesting the making of such Base Rate Loan on the day of any such draw; provided, however, that the failure of the Borrower to deliver such Loan Request shall not effect the validity of any Base Rate Loan made hereunder. Each Bank shall fund its share of such Base Rate Loan by paying its portion of such Loan to the Agent in accordance with SECTION 2.3(E) hereof and its Commitment Percentage, without reduction for any set-off or counterclaim of any nature whatsoever and regardless of whether any Incipient Default or Event of Default (other than with respect to an event described in SECTION 2.3(E) hereof) then exists or would be caused thereby. If at any time that any Letters of Credit are outstanding, any of the events described in SECTION 9.1(J) shall have occurred, then each Bank shall, automatically upon the occurrence of any such event and without any action on the part of the Issuing Bank, the Borrower, the Agent or the Banks, be deemed to have purchased an undivided participation in the face amount of all Letters of Credit then outstanding in an amount equal to such Bank's Commitme...
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Draws Under Letters of Credit. Request or receive any draws under any letters of credit pursuant to which the Borrower is the beneficiary without first making the same part of the Collateral secured hereunder pursuant to a direction to pay proceeds agreement or other instrument satisfactory to Ex-Im Bank in its sole discretion.
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Draws Under Letters of Credit. The Borrower agrees to pay to Bank, on the day on which Bank shall honor a draft or other demand for payment presented or made under any Letter of Credit, an amount equal to the amount paid by the Bank and in the same currency as paid by Bank in respect of such draft or other demand under such Letter of Credit and all reasonable expenses paid or incurred by the Bank relative thereto. Unless the Borrower shall have made such payment to Bank on such day, upon each such payment by the Bank, the Borrower shall be deemed to have elected to substitute for its reimbursement obligation a Canadian Prime Rate Loan (for Letters of Credit denominated in Canadian Dollars) or a US Base Rate Loan (for Letters of Credit denominated in US Dollars) from the Bank in each case in an amount equal to the amount so paid by the Bank in respect of such draft or other demand under such Letter of Credit (each, a “Deemed Advance”). Each Deemed Advance shall be charged as an Advance against the Revolving Line, regardless of (i) the existence of an Event of Default, (ii) whether the conditions precedent set forth in Section 10 of Schedule 1 or elsewhere in this Agreement have been satisfied and (iii) whether such Deemed Advance will cause the total of all Advances outstanding under the revolving demand facility to exceed the Maximum Amount. To the extent of the Deemed Advance so disbursed, the reimbursement obligation of the Borrower to the Bank under this Section 4(e) shall be deemed satisfied.
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Draws Under Letters of Credit. Each of the Letters of Credit may be drawn upon by presentment to the Bank, at its office at 200 ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇ (▇▇ such other office as may be specified therein), of the original Letter of Credit, together with such supporting documents and certificates as may be required by the Letter of Credit. The Bank may honor any draft, certificate or other document reasonably conforming in form and substance to the requirements described in and/or forms annexed to the Letter of Credit, and may afford the beneficiary notice of and an opportunity to correct non-conforming items capable of cure, each in the sole and absolute discretion of the Bank and without any notice to or consent from the Applicant.
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Draws Under Letters of Credit. Draws made upon any Letter of Credit issued pursuant hereto shall be deemed Advances under the Letter of Credit Notes, as of the date of the payment thereof, and shall be subject to the requirements of the Letter of Credit Notes and this Agreement.
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Draws Under Letters of Credit. (1) Upon receipt of any draw against a letter of credit, Bank shall promptly notify Borrower of the amount of such draw and the date for payment of such draw. Borrower hereby agrees to deposit with Bank, on the first Business Day subsequent to such notice, funds sufficient to pay all Letter of Credit Obligations with respect to such draws, which may be the proceeds of an advance, if made by Bank in its sole discretion. (2) In the event that Borrower fails to deposit funds sufficient to pay Letter of Credit Obligations with respect to any draw (whether through an advance or otherwise) on a timely basis, from the date of Bank’s payment on such draw until such Letter of Credit Obligations resulting from such draw shall have been paid, Borrower shall not be entitled to request or receive any advance or to request or receive any other Credits or the issuance of letters of credit hereunder and the amount of the related Letter of Credit Obligation shall bear interest at the Default Rate for Loans bearing interest at the Base Rate, which interest shall be payable on demand.
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Draws Under Letters of Credit. Draws made upon any Letter of Credit issued pursuant hereto shall be deemed Advances under the Letter of Credit Notes, as of the date of the payment thereof, and shall be subject to the requirements of the Letter of Credit Notes and this Agreement.
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Related to Draws 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.

  • Existing Letters of Credit The parties hereto agree that the Existing Letters of Credit shall be deemed Letters of Credit for all purposes under this Agreement, without any further action by the Borrower.

  • The Letters of Credit Each Issuing Bank severally agrees, on the terms and conditions hereinafter set forth, to issue (or cause its Affiliate that is a commercial bank to issue on its behalf) letters of credit (together with the Existing Letters of Credit referred to in Section 2.03(f), the “Letters of Credit”) in U.S. dollars for the account of the Borrower (but in connection with the business of the Borrower or any of its Subsidiaries) from time to time on any Business Day during the period from the Effective Date until 30 days before the Termination Date in an aggregate Available Amount (i) for all Letters of Credit not to exceed at any time the Letter of Credit Facility at such time and (ii) for all Letters of Credit issued by such Issuing Bank not to exceed at any time such Issuing Bank’s Letter of Credit Commitment at such time and (iii) for each such Letter of Credit not to exceed the Unused Revolving Credit Commitments of the Lenders at such time. No Letter of Credit shall have an expiration date (including all rights of the Borrower or the beneficiary to require renewal) later than the earlier of 30 days before the Termination Date and (A) in the case of a Standby Letter of Credit, one year after the date of issuance thereof, but may by its terms be renewable annually upon notice (a “Notice of Renewal”) given to the Issuing Bank that issued such Standby Letter of Credit and the Paying Agent on or prior to any date for notice of renewal set forth in such Letter of Credit but in any event at least three Business Days prior to the date of the proposed renewal of such Standby Letter of Credit and upon fulfillment of the applicable conditions set forth in Article III unless such Issuing Bank has notified the Borrower (with a copy to the Paying Agent) on or prior to the date for notice of termination set forth in such Letter of Credit but in any event at least 45 Business Days prior to the date of automatic renewal of its election not to renew such Standby Letter of Credit (a “Notice of Termination”) and (B) in the case of a Trade Letter of Credit, 30 days after the date of issuance thereof; provided that the terms of each Standby Letter of Credit that is automatically renewable annually shall (x) require the Issuing Bank that issued such Standby Letter of Credit to give the beneficiary named in such Standby Letter of Credit notice of any Notice of Termination, (y) permit such beneficiary, upon receipt of such notice, to draw under such Standby Letter of Credit prior to the date such Standby Letter of Credit otherwise would have been automatically renewed and (z) not permit the expiration date (after giving effect to any renewal) of such Standby Letter of Credit in any event to be extended to a date later than 30 days before the Termination Date. If either a Notice of Renewal is not given by the Borrower or a Notice of Termination is given by the relevant Issuing Bank pursuant to the immediately preceding sentence, such Standby Letter of Credit shall expire on the date on which it otherwise would have been automatically renewed; provided, however, that even in the absence of receipt of a Notice of Renewal the relevant Issuing Bank may in its discretion, unless instructed to the contrary by the Paying Agent or the Borrower, deem that a Notice of Renewal had been timely delivered and in such case, a Notice of Renewal shall be deemed to have been so delivered for all purposes under this Agreement. Within the limits of the Letter of Credit Facility, and subject to the limits referred to above, the Borrower may request the issuance of Letters of Credit under this Section 2.01(c), repay any Letter of Credit Advances resulting from drawings thereunder pursuant to Section 2.03(c) and request the issuance of additional Letters of Credit under this Section 2.01(c).

  • Cash Collateral for Letters of Credit If an Event of Default has occurred and is continuing, this Agreement (or the Revolving Loan Commitment) shall be terminated for any reason or if otherwise required by the terms hereof, the Administrative Agent may, and upon request of Required Revolving Lenders, shall, demand (which demand shall be deemed to have been delivered automatically upon any acceleration of the Loans and other obligations hereunder pursuant to Section 7.2), and the Borrower shall thereupon deliver to the Administrative Agent, to be held for the benefit of the L/C Issuer, the Agents and the Lenders entitled thereto, an amount of cash equal to 105% of the amount of Letter of Credit Obligations as additional collateral security for Obligations in respect of any outstanding Letter of Credit. The Administrative Agent may at any time apply any or all of such cash and cash collateral to the payment of any or all of the Credit Parties’ Obligations in respect of any Letters of Credit. Pending such application, the Administrative Agent may (but shall not be obligated to) invest the same in an interest bearing account in the Administrative Agent’s name, for the benefit of the L/C Issuers, the Agents and the Lenders entitled thereto, under which deposits are available for immediate withdrawal, at such bank or financial institution as the L/C Issuer and the Administrative Agent may, in their discretion, select.

  • Conditions to Letters of Credit The issuance of any Letter of Credit hereunder (whether or not the applicable Issuing Lender is obligated to issue such Letter of Credit) is subject to the following conditions precedent: A. On or before the date of issuance of the initial Letter of Credit pursuant to this Agreement, the initial Loans shall have been made. B. On or before the date of issuance of such Letter of Credit, Administrative Agent shall have received, in accordance with the provisions of subsection 3.1B(i), an originally executed Notice of Issuance of Letter of Credit, in each case signed by the chief executive officer, the chief financial officer or the treasurer of Company or by any executive officer of Company designated by any of the above-described officers on behalf of Company in a writing delivered to Administrative Agent, together with all other information specified in subsection 3.1B(i) and such other documents or information as the applicable Issuing Lender may reasonably require in connection with the issuance of such Letter of Credit. C. On the date of issuance of such Letter of Credit, all conditions precedent described in subsection 4.2B shall be satisfied to the same extent as if the issuance of such Letter of Credit were the making of a Loan and the date of issuance of such Letter of Credit were a Funding Date.