Common use of Fronting Banks Clause in Contracts

Fronting Banks. Any Lender that is a Fronting Bank may at any time assign all of its Revolving Credit Commitment pursuant to, and subject to the terms of, this Section. If such Fronting Bank ceases to be a Lender, it shall resign as a Fronting Bank. In addition, any Fronting Bank may at any time give notice of its resignation as a Fronting Bank to the Administrative Agent and the Borrower. Upon the resignation of any Fronting Bank, such Fronting Bank’s obligations to issue Fronted Letters of Credit shall terminate, and in the event any Fronted Letters of Credit issued by such Fronting Bank are outstanding at the time of its resignation, the Borrower shall terminate, backstop or cash collateralize such Fronted Letters of Credit or coordinate with any other Fronting Bank to have letters of credit issued in substitution for such Fronted Letters of Credit issued by such Fronting Bank.