DSR Letters of Credit Clause Samples
The DSR Letters of Credit clause establishes the requirements and procedures for providing a letter of credit as a form of financial security or payment guarantee in a transaction. Typically, this clause outlines the conditions under which a letter of credit must be issued, the parties responsible for its costs, and the standards the letter must meet, such as being irrevocable and issued by a reputable bank. By specifying these details, the clause ensures that the beneficiary has a reliable means of securing payment or performance, thereby reducing the risk of non-payment or default in commercial agreements.
POPULAR SAMPLE Copied 2 times
DSR Letters of Credit. (a) Subject to the terms and conditions hereof, from time to time on any Business Day occurring on or after the Closing Date until the date that is five (5) Business Days prior to the DSR LC Loan Commitment Termination Date (but not to exceed once in any given month or as otherwise agreed by the applicable DSR LC Issuer), each DSR LC Issuer agrees that it will, to the extent requested by the Borrower:
(i) issue one or more standby letters of credit in favor of the Collateral Agent (for the benefit of the Administrative Agent, the Lenders and the DSR LC Issuers) (a “DSR Letter of Credit”) for the account of the Borrower in the Stated Amount requested by the Borrower on such day; or
(ii) extend, upon the sole discretion of the applicable DSR LC Issuer, the Stated Expiry Date of an existing DSR Letter of Credit previously issued hereunder; provided that the Borrower shall request DSR Letters of Credit from the DSR LC Issuers on a pro rata basis and each such DSR LC Issuer shall not be required to issue or extend any such DSR Letter of Credit if the conditions in Section 5.2 have not been satisfied or waived (in accordance with the terms of this Agreement); provided, further, if any DSR LC Loan Lender (other than such DSR LC Issuer or its Affiliate) is a Defaulting Lender, to the extent such DSR LC Issuer has Fronting Exposure in respect of such DSR Letter of Credit, such DSR LC Issuer shall not be required to issue any DSR Letter of Credit unless (A) the Defaulting Lender’s participation in the DSR Letters of Credit requested to be issued or extended and related DSR LC Loans have been reallocated among the Non-Defaulting Lenders in accordance with Section 4.12.1(c), (B) the Borrower has Cash Collateralized such DSR LC Loan Lender’s DSR LC Loan Percentage of the DSR Letter of Credit requested to be issued or extended (including by transfer of funds available in the Available Cash Account but excluding by funding of a DSR LC Loan) or (C) such DSR LC Issuer has entered into arrangements satisfactory to it and the Borrower to reduce such DSR LC Issuer’s risk with respect to the participation in DSR Letters of Credit of the Defaulting Lender to the same extent as would have existed were such DSR LC Loan Lender not a Defaulting Lender; provided, still further, that after giving effect to any such issuance or extension, in no event shall such Lender’s DSR LC Outstandings exceed its DSR LC Loan Commitment.
(b) No DSR LC Issuer shall be under any obligation to issue a...
DSR Letters of Credit. Subject to the terms and conditions set forth herein, the Borrower may request any Issuing Lender to Issue a DSR Letter of Credit at any time and from time to time during the Letter of Credit Availability Period.
DSR Letters of Credit. Amounts on deposit in the Debt Service Reserve Account may be funded from time to time by any DSR Letter of Credit; provided that the Collateral Agent shall make a drawing upon any DSR Letter of Credit if:
DSR Letters of Credit. Subject to and upon the terms and conditions set forth herein, Borrower may request the issuance of, and the DSR Letter of Credit Issuing Bank hereby agrees to issue DSR Letters of Credit, for the Borrower’s account, at any time during the DSR Letter of Credit Availability Period. DSR Letters of Credit issued hereunder shall constitute utilization of the Total DSR LC Commitment and at any time, the DSR LC Exposure at such time shall not exceed the Total DSR LC Commitment. The DSR Letter of Credit Issuing Bank will make available to the beneficiary thereof the original of the DSR Letter of Credit issued by it hereunder.
DSR Letters of Credit