LC Outstandings Exceed LC Commitment Sample Clauses
The 'LC Outstandings Exceed LC Commitment' clause addresses situations where the total amount of outstanding letters of credit (LCs) surpasses the maximum commitment amount agreed upon by the parties. In practice, this clause typically requires the borrower to promptly reduce the outstanding LC exposure, either by providing additional collateral, repaying amounts, or causing the cancellation of certain LCs, to bring the total back within the committed limit. Its core function is to ensure that the lender's risk exposure does not exceed the agreed threshold, thereby maintaining financial discipline and protecting the lender from overextension.
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LC Outstandings Exceed LC Commitment. If on any date the LC Outstandings exceed the LC Commitment Amount, then the applicable LC Obligor or the Borrower shall, on such day, Cash Collateralize the LC Outstandings to the extent of such excess.
LC Outstandings Exceed LC Commitment. If on any date the LC Outstandings exceed the LC Commitment Amount, then the Borrower shall, before noon on the second Business Day following such date, Cash Collateralize any LC Outstandings that have not previously been Cash Collateralized, to the extent of such excess.
LC Outstandings Exceed LC Commitment. If on any date the LC Outstandings exceed the LC Commitment Amount, then the applicable LC Obligor or the Borrower shall, on such day, pay to the Administrative Agent an amount in cash equal to such excess, and the Administrative Agent shall hold such payment as security for the reimbursement obligations of the applicable LC Obligors hereunder in respect of Letters of Credit pursuant to a cash collateral agreement to be entered into in form and substance reasonably satisfactory to the Administrative Agent, each LC Issuer and the Borrower (which shall permit certain investments in Cash Equivalents satisfactory to the Administrative Agent, each LC Issuer and the Borrower until the proceeds are applied to any Unpaid Drawings or to any other Obligations in accordance with any such cash collateral agreement).
LC Outstandings Exceed LC Commitment. If on any date the Dutch LC Outstandings exceed the Dutch LC Commitment Amount, then the applicable Dutch LC Obligor or the applicable Dutch Borrower shall, on such day, Cash Collateralize the Dutch LC Outstandings in an amount equal to 105% of such excess and shall deposit such amount in the Dutch LC Collateral Account. If on any date the U.S. LC Outstandings exceed the U.S. LC Commitment Amount, then the applicable U.S. LC Obligor or the applicable U.S. Borrower shall, on such day, Cash Collateralize the U.S. LC Outstandings in an amount equal to 105% of such excess and shall deposit such amount in the U.S. LC Collateral Account.
LC Outstandings Exceed LC Commitment. If on any date the LC Outstandings exceed the LC Commitment Amount, then the applicable LC Obligor or the Borrower shall, on such day, pay to the Administrative Agent an amount in cash equal to such excess and the Administrative Agent shall hold such payment as security for the reimbursement obligations of the applicable LC Obligors hereunder in respect of Letters of Credit pursuant to a cash collateral agreement to be entered into in form and substance reasonably satisfactory to the Administrative Agent, each LC Issuer and the Borrower (which shall permit certain investments in Cash Equivalents reasonably satisfactory to the Administrative Agent, each LC Issuer and the Borrower until the proceeds are applied to any Unreimbursed Drawing or to any other Obligations in accordance with any such cash collateral agreement and which shall provide for regular remittance to the Borrower of any interest accrued on such cash collateral amount).