Common use of Advances Automatic; Participations Clause in Contracts

Advances Automatic; Participations. In the event that the Canadian L/C Issuer makes or is required to make any payment on or pursuant to any Canadian Letter of Credit, (1) it shall promptly notify Administrative Agent and Canadian Borrower thereof, (2) Administrative Agent shall pay the Canadian L/C Issuer the amount of such payment in Canadian Dollars within one Business Day after receipt of such notice, and (3) such payment shall be deemed to be a Revolving Credit Advance under Section 1.1(a) of the Agreement, regardless of whether a Default or Event of Default has occurred and is continuing and notwithstanding Canadian Borrower’s failure to satisfy the conditions precedent set forth in Section 2, and each Canadian Revolving Lender shall be obligated to pay its Pro Rata Share thereof in accordance with the Agreement. The failure of any Canadian Revolving Lender to make available to Administrative Agent for Administrative Agent’s own account its Pro Rata Share of any such Revolving Credit Advance or payment by Administrative Agent to the Canadian L/C Issuer shall not relieve any other Canadian Revolving Lender of its obligation hereunder to make available to Administrative Agent its Pro Rata Share thereof, but no Canadian Revolving Lender shall be responsible for the failure of any other Canadian Revolving Lender to make available such other Canadian Revolving Lender’s Pro Rata Share of any such payment.