Common use of Right of recourse Clause in Contracts

Right of recourse. 1. If the Bank makes any payment under the issued guarantee with its own funds, the Client shall compensate the Bank for any sums so paid under the guarantee, including any applicable interest, fees and other costs and expenses. 2. The amount paid by the Bank under an FC guarantee shall be compensated by the Client to the Bank in foreign currency or in HRK equivalent calculated at the selling rate of exchange quoted by the Bank on the payment date. 3. In respect of any amount paid by the Bank under the issued guarantee, the Bank shall calculate and charge default interest starting from the first day. 4. If the issued guarantee specifies the requirement for the Bank to make payment under the guarantee on the date of receipt by the Bank of the payment demand or on the immediately following day after the receipt of the payment demand, and if the Beneficiary calls upon the Bank to pay default interest accrued from the date of receipt by the Bank of the payment demand under the Guarantee up until the date of payment by the Bank under the Guarantee, the Client shall compensate the Bank for any sum of default interest paid in such manner. 5. If the guarantee is governed by foreign law, the Client shall indemnify the Bank for any difference, shortage, loss and damage arising from the application of the foreign law. 6. If the Bank issues a guarantee upon demand of the Client and on behalf of a third party, and is called upon to honor the issued guarantee, the Client shall enter into an agreement with the third party to regulate their mutual business relationship with respect to the international credit transaction in accordance with the terms and conditions laid down in the Foreign Exchange Operations Act and in other applicable bylaws and regulations.

Right of recourse. 1. If the Bank makes any payment under the issued guarantee with its own funds, the Client shall compensate the Bank for any sums so paid under the guarantee, including any applicable interest, fees and other costs and expenses. 2. The amount paid by the Bank under an FC guarantee shall be compensated by the Client to the Bank in foreign currency or in HRK the euro equivalent calculated at the selling rate of exchange quoted by the Bank on the payment date. 3. In respect of any amount paid by the Bank under the issued guarantee, the Bank shall calculate and charge default interest starting from the first day. 4. If the issued guarantee specifies the requirement for the Bank to make payment under the guarantee on the date of receipt by the Bank of the payment demand or on the immediately following day after the receipt of the payment demand, and if the Beneficiary calls upon the Bank to pay default interest accrued from the date of receipt by the Bank of the payment demand under the Guarantee up until the date of payment by the Bank under the Guarantee, the Client shall compensate the Bank for any sum of default interest paid in such manner. 5. If the guarantee is governed by foreign law, the Client shall indemnify the Bank for any difference, shortage, loss and damage arising from the application of the foreign law. 6. If the Bank issues a guarantee upon demand of the Client and on behalf of a third party, and is called upon to honor the issued guarantee, the Client shall enter into an agreement with the third party to regulate their mutual business relationship with respect to the international credit transaction in accordance with the terms and conditions laid down in the Foreign Exchange Operations Act and in other applicable bylaws and regulations.