Applicable Foreign Borrower Sublimits Clause Samples
The "Applicable Foreign Borrower Sublimits" clause defines the maximum amount of credit or loans that can be extended to foreign borrowers under a broader credit facility. This clause typically specifies individual or aggregate limits for borrowers located outside the lender's home country, often distinguishing between different jurisdictions or types of foreign entities. By setting these sublimits, the clause helps manage the lender's risk exposure to foreign markets and ensures compliance with regulatory or internal risk management policies.
Applicable Foreign Borrower Sublimits. Notwithstanding anything to the contrary contained in this Section 2, in no event shall any Applicable Foreign Borrower be entitled to receive a Revolver Loan or the issuance of a Letter of Credit (and no Lender shall be required to make or support the same) if at the time of the proposed funding of such Revolver Loan or the issuance of such Letter of Credit (and after giving effect thereto and all pending requests for Revolver Loans and Letters of Credit by or on behalf of such Borrower), the sum of (a) the Dollar Equivalent of the outstanding amount of all Revolver Loans made to such Borrower on such date and (b) the LC Obligations of such Borrower on such date exceeds the lesser of such Borrower’s individual Borrowing Base or the Applicable Foreign Borrower Commitment. If as a result of fluctuations in Exchange Rates or otherwise the Dollar Equivalent of the sum of all outstanding Revolver Loans made to an Applicable Foreign Borrower and the LC Obligations of such Borrower exceed such Borrower’s Applicable Foreign Borrower Commitment, the excess amount shall be payable by the Applicable Foreign Borrower within three (3) Business Days following written demand by the Agent. In no event shall the aggregate Applicable Foreign Borrower Commitments for all members of a Foreign Borrower Group exceed the Foreign Revolver Commitments for such Foreign Borrower Group.