Reallocation of LC Exposure Sample Clauses

The "Reallocation of LC Exposure" clause defines how the exposure or risk associated with a letter of credit (LC) can be shifted between parties or accounts. In practice, this clause outlines the procedures and conditions under which the responsibility for the LC’s value or obligations may be transferred, such as when a participant’s credit limit is reached or when a counterparty requests a change in allocation. Its core function is to provide flexibility in managing credit risk and ensure that the parties can adapt to changing financial circumstances, thereby maintaining compliance with internal or regulatory exposure limits.
Reallocation of LC Exposure. Upon the effectiveness of the First Revolving Increase, each existing Revolving Lender immediately prior thereto will automatically and without further act be deemed to have assigned to the First Revolving Increase Lender, and the First Revolving Increase Lender will automatically and without further act be deemed to have assumed, a portion of such existing Revolving Lender’s participations under the Credit Agreement in outstanding Letters of Credit such that, after giving effect to the First Revolving Increase and each such deemed assignment and assumption of participations, each such existing Revolving Lender and the First Revolving Increase Lender holds a percentage of the aggregate outstanding participations in Letters of Credit in accordance with its Applicable Percentage.
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Reallocation of LC Exposure. On the Second Amendment Effective Date, immediately after giving effect to the increase in the Revolving Commitment as contemplated hereby (such increase, the “Revolving Facility Upsize”), the LC Exposure in respect of Letters of Credit that were issued prior to, and remain outstanding as of, the Second Amendment Effective Date (the “Specified Letters of Credit”) shall be automatically, and without further act, reallocated amongst the Revolving Lenders based on their respective Pro Rata Share of the Revolving Commitment (after giving effect to the Revolving Facility Upsize). In connection with the foregoing, the Revolving Lenders shall be deemed to have assigned or assumed, as the case may be, an amount of participation interests in respect of the Specified Letters of Credit sufficient to cause each Revolving Lender’s LC Exposure in respect of the Specified Letters of Credit to equal its Pro Rata Share (based on such Revolving Lender’s Revolving Commitment, after giving effect to the Revolving Facility Upsize) of the total LC Exposure in respect of the Specified Letters of Credit. Amendments; Counterparts. This Amendment may not be amended or waived except by an instrument in writing signed by each of the parties party hereto. This Amendment and each other Loan Document may be executed in one or more counterparts (and by different parties hereto in different counterparts), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by telecopier or other electronic transmission of an executed counterpart of a signature page to this Amendment and each other Loan Document shall be effective as delivery of an original executed counterpart of this Amendment and such other Loan Document. The Administrative Agent may also require that any such documents and signatures delivered by telecopier or other electronic transmission be confirmed by a manually-signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by telecopier or other electronic transmission. Governing Law, Jurisdiction and Waiver of Right to Trial by Jury. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. The governing law, jurisdiction, consent to service of process, and waiver of jury trial provisions in Sections 10.5 and 10.6 of the Credit Agreement are incorporated herein by referenc...
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Reallocation of LC Exposure. On and after the Amendment No. 2 Effective Date, each existing LC Tranche Lender immediately prior thereto will automatically and without further act be deemed to have assigned to each of the other LC Tranche Lenders as of the Amendment No. 2 Effective Date (each an “Amendment No. 2 LC Tranche Lender”), and each Amendment No. 2 LC Tranche Lender will automatically and without further act be deemed to have assumed, a portion of such assigning LC Tranche Lender’s participations under the Credit Agreement in outstanding Letters of Credit issued under the LC Tranche such that, after giving effect to this Amendment and each such deemed assignment and assumption of participations, each Amendment No. 2 LC Tranche Lender holds a percentage of the aggregate outstanding participations in Letters of Credit issued under the LC Tranche in accordance with such LC Tranche Lender’s LC Tranche Commitment Percentage.
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Related to Reallocation of LC Exposure

  • Reallocation of Applicable Revolving Percentages to Reduce Fronting Exposure All or any part of such Defaulting Lender’s participation in L/C Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Revolving Percentages (calculated without regard to such Defaulting Lender’s Commitment) but only to the extent that such reallocation does not cause the aggregate Revolving Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Revolving Commitment. Subject to Section 11.20, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

  • Reallocation of Participations to Reduce Fronting Exposure All or any part of such Defaulting Lender’s participation in L/C Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Revolving Credit Commitment Percentages (calculated without regard to such Defaulting Lender’s Revolving Credit Commitment) but only to the extent that (x) the conditions set forth in Section 6.2 are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the aggregate Revolving Credit Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Revolving Credit Commitment. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

  • Reallocation of Applicable Percentages to Reduce Fronting Exposure During any period in which there is a Defaulting Lender, for purposes of computing the amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit or Swing Line Loans pursuant to Sections 2.03 and 2.04, the “Applicable Percentage” of each non-Defaulting Lender shall be computed without giving effect to the Commitment of that Defaulting Lender; provided, that, (i) each such reallocation shall be given effect only if, at the date the applicable Lender becomes a Defaulting Lender, no Default or Event of Default exists; and (ii) the aggregate obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit and Swing Line Loans shall not exceed the positive difference, if any, of (1) the Commitment of that non-Defaulting Lender minus (2) the aggregate Outstanding Amount of the Committed Loans of that Lender.

  • Reallocation of Pro Rata Share to Reduce Fronting Exposure During any period in which any Revolving Credit Lender is a Defaulting Lender, for purposes of computing the amount of the obligation of each Revolving Credit Lender that is a Non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit or Swing Line Loans pursuant to Section 2.03, the “Pro Rata Share” of each Non-Defaulting Lender’s Revolving Credit Loans and L/C Obligations shall be computed without giving effect to the Revolving Credit Commitment of that Defaulting Lender; provided that (i) each such reallocation shall be given effect only if, at the date the applicable Revolving Credit Lender becomes a Defaulting Lender, no Default or Event of Default has occurred and is continuing; and (ii) the aggregate obligation of each Non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit and Swing Line Loans shall not exceed the positive difference, if any, of (1) the Revolving Credit Commitment of that Non-Defaulting Lender minus (2) the aggregate Outstanding Amount of the Revolving Credit Loans of that Non-Defaulting Lender. No reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation. If the allocation described in this clause (iv) cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, (x) first, prepay Swing Line Loans in an amount equal to the Swing Line Lenders’ Fronting Exposure and (y) second, Cash Collateralize the L/C Issuers’ Fronting Exposure in accordance with the procedures satisfactory to such L/C Issuer (in its sole discretion).

  • Reallocation Notwithstanding the allocation of Loan proceeds and the withdrawal percentages set forth in the Table,