Common use of Letter of Credit Availability Clause in Contracts

Letter of Credit Availability. (a) Subject to the terms and conditions hereof, the Issuing Lender, in reliance on the agreements of the other Lenders set forth in Section 3.4(a), agrees to issue standby letters of credit (“Letters of Credit”) for the account of any Borrower on any Business Day during the Commitment Period (other than the five (5) Business Days prior to the Termination Date) in such form as may be approved from time to time by the Issuing Lender; provided that the Issuing Lender shall have no obligation to issue any Letter of Credit if, after giving effect to such issuance, (i) the L/C Obligations would exceed the L/C Sublimit, or (ii) if the limitations set forth in Section 2.1(a) shall have been exceeded following such issuance. Each Letter of Credit shall (i) be denominated in an Approved Currency, (ii) have a stated amount in a Currency Increment applicable to the Approved Currency of such Letter of Credit or such lesser amount as is acceptable to the Issuing Lender, (iii) expire no later than the earlier of (x) the first anniversary of its date of issuance and (y) the date that is five (5) Business Days prior to the Termination Date, provided that any Letter of Credit with a one-year term may provide for the renewal or extension thereof for additional one-year periods (which shall in no event extend beyond the date referred to in clause (y) above); and provided, further, that the Issuing Lender shall not renew or extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing or any of the conditions set forth in Section 5.2 are not satisfied immediately prior to the date of the decision to renew or extend such Letter of Credit, and (iv) be otherwise acceptable in all respects to the Issuing Lender. (b) The Issuing Lender shall not at any time be obligated to issue any Letter of Credit if (i) a Funding Default exists, unless the Issuing Lender has entered into arrangements satisfactory to it and the Borrowers to eliminate the Issuing Lender’s risk with respect to the participation in Letters of Credit of the Defaulting Lender, including by cash collateralizing such Defaulting Lender’s Percentage in the Issuing Lender’s obligations and rights under and in respect of each Letter of Credit and the amount of each draft paid by the Issuing Lender thereunder or (ii) such issuance would conflict with, or cause the Issuing Lender or any L/C Participant to exceed any limits imposed by, any applicable Requirement of Law.

Letter of Credit Availability. (a) Subject to the terms and conditions hereof, the Issuing LenderBank, in reliance on the agreements of the other Lenders set forth in Section 3.4(a), agrees to issue standby letters of credit (“Letters of Credit”) for the account of any Borrower on any Business Day during the Commitment Period (other than the five (5) Business Days prior to the Termination Date) in such form as may be approved from time to time by the Issuing LenderBank; provided that the Issuing Lender Bank shall have no obligation to issue any Letter of Credit if, after giving effect to such issuance, (i) the L/C Obligations would exceed the L/C Sublimit, or (ii) if the limitations set forth in Section 2.1(a) shall have been exceeded following such issuance. Each Letter of Credit shall (i) be denominated in an Approved Currency, (ii) have a stated amount in a Currency Increment applicable to the Approved Currency of such Letter of Credit or such lesser amount as is acceptable to the Issuing LenderBank, (iii) expire no later than the earlier of (x) the first anniversary of its date of issuance and (y) the date that is five (5) Business Days prior to the Termination Date, provided that any Letter of Credit with a one-year term may provide for the renewal or extension thereof for additional one-year periods (which shall in no event extend beyond the date referred to in clause (y) above); and provided, further, that the Issuing Lender Bank shall not renew or extend any such Letter of Credit if it has received written notice that an Event of Default has occurred and is continuing or any of the conditions set forth in Section 5.2 are not satisfied immediately prior to the date of the decision to renew or extend such Letter of Credit, and (iv) be otherwise acceptable in all respects to the Issuing LenderBank. (b) The Issuing Lender Bank shall not at any time be obligated to issue any Letter of Credit if (i) a Funding Default exists, unless the Issuing Lender Bank has entered into arrangements satisfactory to it and the Borrowers to eliminate the Issuing LenderBank’s risk with respect to the participation in Letters of Credit of the Defaulting Lender, including by cash collateralizing such Defaulting Lender’s Percentage in the Issuing LenderBank’s obligations and rights under and in respect of each Letter of Credit and the amount of each draft paid by the Issuing Lender Bank thereunder or (ii) such issuance would conflict with, or cause the Issuing Lender Bank or any L/C Participant to exceed any limits imposed by, any applicable Requirement of Law.