Common use of Fronting Clause in Contracts

Fronting. All Letters of Credit shall be issued by the Fronting Lender on behalf of the Lenders and for this purpose: (a) the Principal Outstanding in respect of such Letters of Credit shall be considered to be allocated among such Lenders pro rata on the basis of their respective Commitments and, on the issuance of a Letter of Credit under the Credit Facility, the Administrative Agent shall advise each of the Lenders of their pro rata share of the liability under such Letter of Credit having regard to their respective Commitments and on the basis that each Lender is liable to, and by entering into this agreement agrees to, indemnify and hold harmless the Fronting Lender in relation to the Fronting L▇▇▇▇▇’s liability as issuer of such Letter of Credit to the extent of the amount of such pro rata share of such liability; (b) for greater certainty and without limiting the generality of section 12.1, the Principal Outstanding among the Lenders shall be adjusted in the circumstances and in the manner contemplated by section 12.1 in order to reflect the Issuance by the Fronting Lender on behalf of the Lenders.

Fronting. All Letters of Credit shall be issued by the Fronting Lender on behalf of the Lenders and for this purpose: (a) the Principal Outstanding in respect of such Letters of Credit shall be considered to be allocated among such Lenders pro rata on the basis of their respective Commitments and, on the issuance of a Letter of Credit under the Credit Facility, the Administrative Agent shall advise each of the Lenders of their pro rata share of the liability under such Letter of Credit having regard to their respective Commitments and on the basis that each Lender is liable to, and by entering into this agreement agrees to, indemnify and hold harmless the Fronting Lender in relation to the Fronting L▇▇▇▇▇’s 's liability as issuer of such Letter of Credit to the extent of the amount of such pro rata share of such liability; (b) for greater certainty and without limiting the generality of section 12.1, the Principal Outstanding among the Lenders shall be adjusted in the circumstances and in the manner contemplated by section 12.1 in order to reflect the Issuance by the Fronting Lender on behalf of the Lenders.