Replacement of Letters of Credit Sample Clauses
The Replacement of Letters of Credit clause establishes the conditions and procedures under which an existing letter of credit may be substituted with a new one during the course of a contractual relationship. Typically, this clause outlines the requirements for the new letter of credit, such as its amount, issuing bank, and timing for delivery, ensuring it meets the original obligations. Its core function is to provide flexibility for parties to update or change financial guarantees without disrupting the underlying agreement, thereby maintaining continuous security and minimizing risk if the original letter of credit becomes unsuitable or is set to expire.
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Replacement of Letters of Credit. Upon the request of the Borrower, the Agent shall accept (a) at any time following 120 days after any prepayment of the Loans, one or more replacement or amended Letters of Credit with an aggregate drawable amount reasonably acceptable to the Agent but in any event no less than the outstanding principal amount of the Loan, together with interest accruing for a six-month period computed on the basis used for the Letters of Credit issued on the Agreement Date and (b) any replacement Letter of Credit with an aggregate drawable amount equal to the original Letter of Credit that is being replaced by such replacement Letter of Credit, PROVIDED that, in each case, such replacement Letter of Credit is issued by a Person acceptable at the time of issuance to all Lenders. The Agent agrees that, upon receipt of a replacement Letter of Credit in accordance herewith, it will promptly surrender the original Letter of Credit that is being replaced.
Replacement of Letters of Credit. As promptly as practicable, and in any event, no later than five (5) Business Days following the Closing Date, the Purchaser shall, and shall cause its Affiliates to, take or cause to be taken all actions necessary to replace any and all letters of credit issued by or on behalf of the US Seller or any of its Affiliates in relation to any of the Transferred Contracts or otherwise in relation to the Business and shall use its commercially reasonable efforts to have any such Letters of Credit issued by or on behalf of the US Seller or any of its Affiliates returned to the US Seller, including by causing to be issued to the holder of the Letter of Credit a replacement Letter of Credit or, at the option of the Purchaser, by providing guarantees or other credit support to any such holder. All costs and expenses incurred in connection with the replacement of Letters of Credit under this Section 5.23 shall be borne by the Purchaser.
Replacement of Letters of Credit. Within five (5) Business Days after the Effective Date, Purchaser will obtain the release and surrender to Seller of the $300,000 Materials Storage Standby Letter of Credit dated December 8, 1998, issued to the account of the Company for the benefit of ▇▇▇▇ Companies US, Inc. (the "$300,000 LOC") and the $500,000 Materials Storage Standby Letter of Credit dated January 12, 1999, issued to the account of the Company for the benefit of ▇▇▇▇ Companies US, Inc. (the "$500,000 LOC" together with the $300,000 LOC, collectively referred to herein as the "Letters of Credit"), or make such other arrangements as are satisfactory to Seller, in its sole discretion.
Replacement of Letters of Credit. On the Closing Date or Designation Date, as applicable, each agreement governing the letters of credit referred to clauses (a) and (b) above that constitute Letters of Credit hereunder (other than, for the avoidance of doubt, the Letter of Credit itself) shall be deemed superseded and replaced in its entirety by the provisions of this Agreement and, if applicable, as such provisions may be modified by any Letter of Credit Acknowledgment with regard to such Letters of Credit.
Replacement of Letters of Credit. The Borrowers hereby agree that the outstanding Letters of Credit for the account of the Restaurant LLC's shall be replaced with substitute letters of credit or other credit support acceptable to the beneficiary thereof and such Letters of Credit shall have been cancelled and delivered to the Issuing Bank not later than 60 days following the date hereof. Until the Letters of Credit shall have been cancelled and delivered to the Agent, the Agent and the Lenders shall maintain a reserve against the Borrowing Base in an amount equal to the face amount of such Letters of Credit. In the event such Letters of Credit have not been replaced, cancelled and returned to the Agent within 60 days of the date
Replacement of Letters of Credit. Prior to the Closing, Buyer shall (i) make arrangements to obtain as of the Closing Date one or more letters of credit to replace each of the existing letters of credit set forth on Schedule 8.3 (and any replacements thereof obtained by the Company prior to the Closing), such replacement letters of credit to be in a form and substance acceptable to the intended beneficiaries thereof and (ii) use its commercially reasonable efforts to obtain the release of the letters of credit set forth on Schedule 8.3 (or any replacements thereof obtained by the Company prior to the Closing) from the beneficiaries thereof, such release to take effect as of the Closing Date or cash collateralize such letters of credit until such letters of credit shall be so released by the beneficiaries thereof.
Replacement of Letters of Credit. Unless otherwise agreed to in writing by Seller, Buyer shall use its best efforts to arrange, prior to the Closing, for replacement arrangements (which shall include a full and complete release of Seller and its Affiliates, other than the Company), including, to the extent required, guarantees, surety bonds and letters of comfort, reasonably satisfactory to Seller with respect to all surety bonds, letters of credit and other borrowings or other contractual obligations of the Business which are set forth on Schedule 5.9. In the event that, despite Buyer’s best efforts, Buyer and is unable to effectuate such replacement arrangements with the counter parties to such obligations, then upon the Closing, Buyer and its Subsidiaries shall provide the Seller and Seller-Related Parties with an indemnity reasonably acceptable to Seller and Seller-Related Parties, indemnifying and holding harmless Seller and Seller-Related Parties from and against any and all liabilities, costs, losses, damages and/or expenses which Seller and Seller-Related Parties may suffer as a result of their continuing liability on such guarantees, surety bonds, covenants, indemnities, letters of credit and other borrowings or other contractual obligations.
Replacement of Letters of Credit. Purchaser shall have caused letters of credit to be issued and delivered that will replace the letters of credit identified in Schedule 6.19 and shall have delivered evidence thereof to Sellers; and
Replacement of Letters of Credit. On the Closing Date, Seller shall terminate the letters of credit of Seller set forth on Schedule 6.16 (the “Seller LCs”) which Seller maintains in support of certain of its obligations in connection with the conduct of the Business. Also on the Closing Date, Buyer shall establish with institutional lenders letters of credit or other means of financial support acceptable to Seller (acting reasonably) in such amounts as are necessary for Buyer to provide the same security or other financial support as were provided under the Seller LCs immediately prior to the Closing Date.
Replacement of Letters of Credit. Set forth on Schedule 8.12 is a list of all letters of credit posted by or on behalf of the Seller in connection with the Business. The Buyer agrees that it will replace each letter of credit on or prior to the Closing Date with letters of credit issued by the Buyer's lenders and cause Seller's letters of credit to be returned to the Seller at Closing or in the alternative the Buyer will supply a back-to-back letter of credit to Seller's issuer. The Buyer agrees to indemnify and hold harmless the Seller from and against any losses incurred by the Seller after the Closing in connection with, or in any way relating to, the Buyer's failure to replace the letters of credit listed on Schedule 8.12 or failure to issue a back-to-back letter of credit.