Common use of Applied Letters of Credit Clause in Contracts

Applied Letters of Credit. If, notwithstanding the provisions of clause 2.6 (Order of Application of Funds at Lloyd’s), any sum is paid under a Letter of Credit (an “Applied Letter of Credit”) which is greater than any sum which would have been paid had Own FAL been applied to meet any demand prior to the Funds at Lloyd’s provided pursuant to the Facility in accordance with clause 2.6 (Order of Application of Funds at Lloyd’s) (the difference between the sum paid under the Applied Letter of Credit and the sum which should have been paid being the “Overpayment”), the Borrower shall indemnify the Lenders pursuant to clause 8 (Xxxxxxxx’s Indemnity to the Lenders) including, where necessary, by procuring the release by Xxxxx’x of Own FAL and, upon the Lenders being indemnified in full thereunder (but subject to the Agent receiving confirmation in writing from the Borrower that no Default is continuing): (a) a supplementary Letter of Credit will be issued in an amount equal to the Overpayment having an Expiry Date which is the same as that of the Applied Letter of Credit; or (b) the Applied Letter of Credit will be amended by increasing the amount thereof by an amount equal to the Overpayment.

Applied Letters of Credit. If, notwithstanding the provisions of clause 2.6 Clause 2.4 (Order of Application of Funds at Lloyd’sOwn FAL), any sum is paid under a Letter of Credit (an “Applied Letter of Credit”) which is greater than any sum which would have been paid had Own FAL been applied to meet any demand prior to the Funds at Lloyd’s provided pursuant to the this Facility in accordance with clause 2.6 Clause 2.4 (Order of Application of Funds at Lloyd’sOwn FAL) (the difference between the sum paid under the Applied Letter of Credit and the sum which should have been paid being the “Overpayment”), each Borrower shall, to any extent necessary to facilitate the Borrower shall indemnify indemnification of the Lenders pursuant to clause 8 under Clause 7 (XxxxxxxxBorrower’s Indemnity to the Lenders) including), where necessary, by procuring use all reasonable endeavours to procure the release by Xxxxx’x Lloyd’s of the 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 Original Borrower that no Default is continuing):), either: (a) 3.8.1 a supplementary Letter of Credit will be issued in an amount equal to the Overpayment having an Expiry Date which is the same as that of the Applied Letter of Credit; or (b) 3.8.2 the Applied Letter of Credit will be amended by increasing the amount thereof by an amount equal to the Overpayment.

Applied Letters of Credit. If, notwithstanding the provisions of clause 2.6 Clause 2.4 (Order of Application of Funds at Lloyd’sOwn FAL), any sum is paid under a Letter of Credit (an “"Applied Letter of Credit”") which is greater than any sum which would have been paid had Own FAL been applied to meet any demand prior to the Funds at Lloyd’s 's provided pursuant to the this Facility in accordance with clause 2.6 Clause 2.4 (Order of Application of Funds at Lloyd’sOwn FAL) (the difference between the sum paid under the Applied Letter of Credit and the sum which should have been paid being the “"Overpayment”"), each Borrower shall, to any extent necessary to facilitate the Borrower shall indemnify indemnification of the Lenders pursuant to clause 8 under Clause 7 (Xxxxxxxx’s Borrower's Indemnity to the Lenders) including), where necessary, by procuring use all reasonable endeavours to procure the release by Xxxxx’x Lloyd's of the 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 Original Borrower that no Default is continuing):), either: (a) 3.8.1 a supplementary Letter of Credit will be issued in an amount equal to the Overpayment having an Expiry Date which is the same as that of the Applied Letter of Credit; or (b) 3.8.2 the Applied Letter of Credit will be amended by increasing the amount thereof by an amount equal to the Overpayment.