Common use of FOREIGN CURRENCY TRANSACTION Clause in Contracts

FOREIGN CURRENCY TRANSACTION. In every instance that Credit is granted or is to be granted to the Customer in any foreign currency (hereinafter referred to as a “Foreign Currency Transaction”), we hereby undertake to pay the Bank or to its order in that same foreign currency all the sums which are due and which shall become due from the Customer with respect to the Foreign Currency Transaction, including principal, interest, if any, and also any commissions and expenses deriving from the linkage of the principal and the interest, or any one of them to the Exchange Rate. In the event that the Bank shall be compelled to take legal action against us on the basis of this Guarantee in order to recover sums in respect of a Foreign Currency Transaction and court and q or the execution office shall order us to pay any sums in respect of the Foreign Exchange Transaction, in Israeli currency or in consideration of Israeli currency, we hereby undertake to pay the Bank the amount, in New Israeli Shekel, or the proceeds thereof, which shall be sufficient for the conversion into foreign currency of the said amount in accordance with the Exchange Rate as defined in Clause 1(j) above, prevailing on the date of actual payment.