Common use of Applied Letters of Credit Clause in Contracts

Applied Letters of Credit. If, notwithstanding the provisions of Clause 2.5 (Application of Subordinated Funds at Lloyd’s), any sum is paid under a Letter of Credit (an “Applied Letter of Credit”) before the Subordinated Funds at Lloyd’s of the Account Party have been applied to the fullest extent possible, the Borrower shall, to any extent necessary to facilitate the indemnification of each Lender under Clause 5.2 (Borrower’s Indemnity to the Lenders), use all reasonable endeavours to procure the release by Lloyd’s of the Subordinated Funds at Lloyd’s and (subject to the Agent receiving confirmation that no Default or Event of Default is then continuing): 4.3.1 a supplementary Letter of Credit will be issued in an amount equal to the sum paid under the Applied Letter of Credit and having an Expiry Date which is the same as that of the Applied Letter of Credit; or 4.3.2 the Applied Letter of Credit will be amended by increasing the amount thereof by an amount equal to the sum so paid, provided that the Agent, on behalf of the Lenders, has received written confirmation from Lloyd’s that (a) such supplementary Letter of Credit or increase in the amount of the Applied Letter of Credit is conditional upon the release of the Subordinated Funds at Lloyd’s; and (b) the released Subordinated Funds at Lloyd’s will be paid directly to the Agent on behalf of the Lenders without deduction.

Applied Letters of Credit. If, notwithstanding the provisions of Clause clause 2.5 (Application of Subordinated Funds at Lloyd’s), any sum is paid under a Letter of Credit (an “Applied Letter of Credit”) before the Subordinated Funds at Lloyd’s of the Account Party have been applied to the fullest extent possible, the Borrower shall, to any extent necessary to facilitate the indemnification of each Lender under Clause clause 5.2 (Borrower’s Indemnity to the Lenders), use all reasonable endeavours to procure the release by Lloyd’s of the Subordinated Funds at Lloyd’s and (subject to the Agent receiving confirmation that no Default or Event of Default is then continuing): 4.3.1 (a) a supplementary Letter of Credit will be issued in an amount equal to the sum paid under the Applied Letter of Credit and having an Expiry Date which is the same as that of the Applied Letter of Credit; or 4.3.2 (b) the Applied Letter of Credit will be amended by increasing the amount thereof by an amount equal to the sum so paid, provided that the Agent, on behalf of the Lenders, has received written confirmation from Lloyd’s that (a) such supplementary Letter of Credit or increase in the amount of the Applied Letter of Credit is conditional upon the release of the Subordinated Funds at Lloyd’s; and (b) the released Subordinated Funds at Lloyd’s will be paid directly to the Agent on behalf of the Lenders without deduction.

Applied Letters of Credit. If, notwithstanding the provisions of Clause 2.5 2.4 (Application of Subordinated Funds at Lloyd’sOwn FAL), any sum is paid under a Letter of Credit (an “Applied Letter of Credit”) before which is greater than any sum which would have been paid had Own FAL been applied to meet any demand prior to the Subordinated Funds at Lloyd’s provided pursuant to this Facility in accordance with Clause 2.4 (Application of Own FAL) (the Account Party difference between the sum paid under the Applied Letter of Credit and the sum which should have been applied to paid being the fullest extent possible“Overpayment”), the Borrower shall, to any extent necessary to facilitate the indemnification of each Lender the Lenders under Clause 5.2 7 (Borrower’s Indemnity to the Lenders), use all reasonable endeavours to procure the release by Lloyd’s of the Subordinated Funds at Lloyd’s and Own FAL of the Account Party in an amount equal to the Overpayment and, upon the Lenders being indemnified in full thereunder (but subject to the Agent receiving confirmation in writing from the Borrower that no Default or Event of Default is then continuing):), either: 4.3.1 3.8.1 a supplementary Letter of Credit will be issued in an amount equal to the sum paid under the Applied Letter of Credit and Overpayment having an Expiry Date which is the same as that of the Applied Letter of Credit; or 4.3.2 3.8.2 the Applied Letter of Credit will be amended by increasing the amount thereof by an amount equal to the sum so paid, provided that the Agent, on behalf of the Lenders, has received written confirmation from Lloyd’s that (a) such supplementary Letter of Credit or increase in the amount of the Applied Letter of Credit is conditional upon the release of the Subordinated Funds at Lloyd’s; and (b) the released Subordinated Funds at Lloyd’s will be paid directly to the Agent on behalf of the Lenders without deductionOverpayment.

Applied Letters of Credit. If, notwithstanding the provisions of Clause 2.5 2.4 (Application of Subordinated Funds at Lloyd’sofOwn FAL), any sum is paid under a Letter of Credit (an “"Applied Letter of Credit”") before which is greater than any sum which would have been paid had Own FAL been applied to meet any demand prior to the Subordinated Funds at Lloyd’s 's provided pursuant to this Facility in accordance with Clause 2.4 (Application of Own FAL) (the Account Party difference between the sum paid under the Applied Letter of Credit and the sum which should have been applied to paid being the fullest extent possible"Overpayment"), the Borrower shall, to any extent necessary to facilitate the indemnification of each Lender the Lenders under Clause 5.2 7 (Borrower’s 's Indemnity to the Lenders), use all reasonable endeavours to procure the release by Lloyd’s 's of the Subordinated Funds at Lloyd’s and Own FAL of the Account Party in an amount equal to the Overpayment and, upon the Lenders being indemnified in full thereunder (but subject to the Agent receiving confirmation in writing from the Borrower that no Default or Event of Default is then continuing):), either: 4.3.1 3.8.1 a supplementary Letter of Credit will be issued in an amount equal to the sum paid under the Applied Letter of Credit and Overpayment having an Expiry Date which is the same as that of the Applied Letter of Credit; or 4.3.2 3.8.2 the Applied Letter of Credit will be amended by increasing the amount thereof by an amount equal to the sum so paid, provided that the Agent, on behalf of the Lenders, has received written confirmation from Lloyd’s that (a) such supplementary Letter of Credit or increase in the amount of the Applied Letter of Credit is conditional upon the release of the Subordinated Funds at Lloyd’s; and (b) the released Subordinated Funds at Lloyd’s will be paid directly to the Agent on behalf of the Lenders without deductionOverpayment.