Common use of No Obligation to Issue Clause in Contracts

No Obligation to Issue. The L/C Issuer shall not be under any obligation to issue any Letter of Credit if: (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing the Letter of Credit, or any Applicable Law or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon the L/C Issuer with respect to the Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Original Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Original Closing Date and which the L/C Issuer in good ▇▇▇▇▇ ▇▇▇▇▇ material to it; or (ii) the issuance of the Letter of Credit would violate one or more policies of the L/C Issuer applicable to letters of credit generally. Notwithstanding anything to the contrary contained in this Section 2.7 or elsewhere in this Agreement, in the event that a Lender with a Guarantee Credit Commitment is a Defaulting Lender, until such time as the L/C Issuer has entered into arrangements satisfactory to it and the Borrower to eliminate the L/C Issuer's risk with respect to the participation in Letters of Credit by all such Defaulting Lenders, including by cash collateralizing each such Defaulting Lender's Participating Interest, the L/C Issuer shall not be required to issue, amend or renew any Letter of Credit to the extent that the sum of the aggregate principal amount of L/C Obligations (including L/C Obligations in respect of such Letter of Credit) outstanding at such time exceeds the Guarantee Credit Limit in effect at such time less such Defaulting Lender's Guarantee Credit Commitment.

No Obligation to Issue. The L/C Issuer shall not be under any obligation to issue any Letter of Credit if: (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing the Letter of Credit, or any Applicable Law or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon the L/C Issuer with respect to the Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Original Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Original Closing Date and which the L/C Issuer in good ▇▇▇▇▇ ▇▇▇▇▇ material to it; or (ii) the issuance of the Letter of Credit would violate one or more policies of the L/C Issuer applicable to letters of credit generally. Notwithstanding anything to the contrary contained in this Section 2.7 2.6 or elsewhere in this Agreement, in the event that a Lender with a Guarantee Credit Commitment is a Defaulting Lender, until such time as the L/C Issuer has entered into arrangements satisfactory to it and the Borrower to eliminate the L/C Issuer's risk with respect to the participation in Letters of Credit by all such Defaulting Lenders, including by cash collateralizing each such Defaulting Lender's Participating Interest, the L/C Issuer shall not be required to issue, amend or renew any Letter of Credit to the extent that the sum of the aggregate principal amount of L/C Obligations (including L/C Obligations in respect of such Letter of Credit) outstanding at such time exceeds the Guarantee Credit Limit in effect at such time less such Defaulting Lender's Guarantee Credit Commitment.