Common use of Procedures and Limitations Clause in Contracts

Procedures and Limitations. The following provisions shall apply to LC Issues: (a) any request by the Borrower for the issuance of a Letter of Credit shall be given to the Operating Facility Lender; (b) each Letter of Credit shall have a term not exceeding 12 months or such longer period as may be acceptable to the Operating Facility Lender in its sole discretion and shall otherwise be in a form satisfactory to the Operating Facility Lender, provided that the term of each Letter of Credit shall be permitted to be automatically extended annually pursuant to the terms thereof for up to an additional 12 months or such longer period as may be acceptable to the Operating Facility Lender in its sole discretion, and further provided that no term of a Letter of Credit shall extend beyond the Maturity Date of the Operating Facility unless and until the Borrower has for the benefit of the Operating Facility Lender fully cash collateralized all amounts that may be payable by the Operating Facility Lender in connection with each such Letter of Credit, which cash collateral shall be deposited and maintained in a non-interest bearing cash collateral account with the Agent; (c) the Operating Facility Lender shall have no obligation to issue a Letter of Credit until the Borrower has executed and delivered to the Operating Facility Lender such ancillary documents, including applications and indemnities, as the Operating Facility Lender normally requires for similar transactions at least three Banking Days prior to the date of issuance; (d) the Borrower may not effect a Conversion of a Letter of Credit; and (e) the Borrower shall immediately reimburse the Operating Facility Lender for any amounts drawn on a Letter of Credit failing which the Lender shall be deemed to have made a Prime Loan or USBR Loan, as applicable, depending on the currency of the Letter of Credit.

Procedures and Limitations. The following provisions shall apply to LC Issues: (a) any request by the Borrower for the issuance of a Letter of Credit shall be given to the Operating Facility Lender; (b) each Letter of Credit shall have a term not exceeding 12 months or such longer period as may be acceptable to the Operating Facility Lender in its sole discretion and shall otherwise be in a form satisfactory to the Operating Facility Lender, provided that the term of each Letter of Credit shall be permitted to be automatically extended annually pursuant to the terms thereof for up to an additional 12 months or such longer period as may be acceptable to the Operating Facility Lender in its sole discretion, and further provided that no term of a Letter of Credit shall extend beyond the Maturity Date of the Operating Facility unless and until the Borrower has for the benefit of the Operating Facility Lender fully cash collateralized all amounts that may be payable by the Operating Facility Lender in connection with each such Letter of Credit, which cash collateral shall be deposited and maintained in a non-interest bearing cash collateral account with the Agent; (c) the Operating Facility Lender shall have no obligation to issue a Letter of Credit until the Borrower has executed and delivered to the Operating Facility Lender such ancillary documents, including applications and indemnities, as the Operating Facility Lender normally requires for similar transactions at least three two Banking Days prior to the date of issuance; (d) the Borrower may not effect a Conversion of a Letter of Credit; and (e) the Borrower shall immediately reimburse the Operating Facility Lender for any amounts drawn on a Letter of Credit failing which the Lender shall be deemed to have made a Prime Loan or USBR Loan, as applicable, depending on the currency of the Letter of Credit.