Common use of Fronting Banks Clause in Contracts

Fronting Banks. (a) Each Fronting Bank shall execute and deliver to the Administrative Agent a Fronting Bank Agreement in substantially the form of Exhibit D hereto prior to issuing any letters of credit at the request or for the benefit of the Borrower. Upon execution and delivery by a Fronting Bank to the Administrative Agent of a Fronting Bank Agreement, such Fronting Bank, shall become a party to this Agreement and shall have all the rights and obligations of a Fronting Bank as set forth herein. If the Fronting Bank is not incorporated under the laws of the United States of America or a state thereof, it shall deliver to the Borrower and the Administrative Agent certification as to exemption from, or reduction in, deduction or withholding of any United States federal income taxes as required by Section 8.04. (b) Any Fronting Bank may be released from its obligations hereunder as a Fronting Bank upon (x) (i) the mutual agreement of such Fronting Bank and the Borrower and (ii) notice to the Administrative Agent or (y) in accordance with Section 9.06(g).