Common use of ENFORCEMENT OF GUARANTEE INSTRUMENTS Clause in Contracts

ENFORCEMENT OF GUARANTEE INSTRUMENTS. 10.1 In the event the Bank receives an enforcement request (totally or partially) of a Guarantee Instrument, it shall proceed as follows: (a) if the Facility Limit of the Guarantee Facility is entirely secured by collateral deposit created in the same currency as the currency of the Facility Limit of the Guarantee Facility and of the Guarantee Instrument, the Bank makes the payment to the Beneficiary from its resources, and, subsequently, during the same day, shall retain form the collateral deposit the amount paid during the enforcement of the Guarantee Instrument; (b) if the Facility Limit of the Guarantee Facility is secured by other security than collateral deposit created in the same currency as the currency of the Facility Limit of the Guarantee Facility and of the Guarantee Instrument, the Bank makes the payment to the Beneficiary from its resources, and, subsequently, opens a Credit Facility to the Borrower equal to the amount paid by the Bank, under the conditions provided at Clauses 5.2 to 5.4 above.