B/A Equivalent Loans. If a Lender is not a chartered bank under the Bank Act (Canada) or if a Lender notifies the Agent in writing that it is otherwise unable to accept Bankers’ Acceptances, such Lender shall, instead of accepting and purchasing Bankers’ Acceptances, make a loan denominated in Canadian Dollars (a “B/A Equivalent Loan”) to the Borrower in the amount and for the same term as the draft which such Lender would otherwise have been required to accept and purchase hereunder. Each such Lender shall provide to the Agent the Discount Proceeds of such B/A Equivalent Loan for the account of the Borrower. Each such B/A Equivalent Loan shall bear interest at the same rate which would result if such Lender had accepted (and been paid an Acceptance Fee) and purchased (on a discounted basis) a Bankers’ Acceptance for the relevant Contract Period (it being the intention of the parties that each such B/A Equivalent Loan shall have the same economic consequences for the Lenders and the Borrower as the Bankers’ Acceptance which such B/A Equivalent Loan replaces). All such interest shall be paid in advance on the date such B/A Equivalent Loan is made, and shall be deducted from the amount to be advanced on account of such B/A Equivalent Loan in the same manner in which the Discount Proceeds of a Bankers’ Acceptance would be deducted from the face amount of the Bankers’ Acceptance. On the last day of the relevant Contract Period for such B/A Equivalent Loan, the Borrower shall be entitled to convert each such B/A Equivalent Loan into another type of Advance, or to roll over each such B/A Equivalent Loan into another B/A Equivalent Loan, all in accordance with the applicable provisions of this Agreement.
B/A Equivalent Loans. (a) Subject to the terms and conditions of this Agreement, the Borrower may request a B/A Borrowing in accordance with Section 2.3. Promptly following receipt of a Borrowing Request specifying a B/A Borrowing, the Agent shall so advise the Lenders and provide information as to the applicable Contract Period and the B/A Rate of such B/A Equivalent Loan.
(b) No Contract Period with respect to a B/A Equivalent Loan under the Credit shall extend beyond the Maturity Date.
(c) Subject to repayment requirements, on the last day of the relevant Contract Period for a B/A Equivalent Loan, the Borrower shall be entitled to convert such B/A Equivalent Loan into another Type of Loan, or to roll over such B/A Equivalent Loan into another B/A Equivalent Loan, all in accordance with the applicable provisions of this Agreement.
(d) With respect to each B/A Borrowing, at or before 10:00 a.m. two Business Days before the last day of the Contract Period of such B/A Borrowings, the Borrower shall notify the Agent in writing, if the Borrower intends to roll over such B/A Equivalent Loan into another B/A Equivalent Loan on such last day of the Contract Period. If the Borrower fails to notify the Agent of its intention to roll over such B/A Equivalent Loan into another B/A Equivalent Loan on such last day of the Contract Period, the Borrower shall provide payment to the Agent on behalf of the Lenders of an amount equal to the aggregate face amount of such B/A Borrowings on the last day of the Contract Period thereof. If the Borrower fails to make such payment, such maturing B/A Borrowings shall be deemed to have been converted on the last day of the Contract Period into a Canadian Prime Loan in an amount equal to the aggregate amount of such B/A Borrowings.
(e) Except as required by any Lender upon the occurrence of an Event of Default, no B/A Equivalent Loan may be repaid by the Borrower prior to the expiry date of the Contract Period applicable to such B/A Equivalent Loan; provided, however, that the Borrower may defease any B/A Equivalent Loan by depositing with the Agent an amount that is sufficient to repay such B/A Equivalent Loan on the expiry date of the Contract Period applicable to such B/A Equivalent Loan.
B/A Equivalent Loans. If a Canadian Lender is not a chartered bank under the Bank Act (Canada) or if a Canadian Lender notifies the Canadian Agent in writing that it is otherwise unable to accept Bankers’ Acceptances, such Canadian Lender will, instead of accepting and purchasing Bankers’ Acceptances, make a Loan (a “B/A Equivalent Loan”) from its Canadian Lending Office to the Canadian Borrower in the amount and for the same term as the draft that such Canadian Lender would otherwise have been required to accept and purchase hereunder. Each such Canadian Lender may request that such B/A Equivalent Loan be evidenced by a non-interest bearing promissory note, in a form approved by the Canadian Borrower and the Canadian Agent. Each such Canadian Lender will provide to the Canadian Agent the Discount Proceeds of such B/A Equivalent Loan for the account of the Canadian Borrower in the same manner as such Canadian Lender would have provided the Discount Proceeds in respect of the draft that such Canadian Lender would otherwise have been required to accept and purchase hereunder. Each such B/A Equivalent Loan will bear interest at the same rate that would result if such Canadian Lender had accepted (and been paid an acceptance fee) and purchased (on a discounted basis) a Bankers’ Acceptance for the relevant Contract Period (it being the intention of the parties that each such B/A Equivalent Loan shall have the same economic consequences for the Lenders and the Canadian Borrower as the Bankers’ Acceptance that such B/A Equivalent Loan replaces). All such interest shall be paid in advance on the date such B/A Equivalent Loan is made, and will be deducted from the principal amount of such B/A Equivalent Loan in the same manner in which the Discount Proceeds of a Bankers’ Acceptance would be deducted from the face amount of the Bankers’ Acceptance. Subject to the repayment requirements of this Agreement, on the last day of the relevant Contract Period for such B/A Equivalent Loan, the Canadian Borrower shall be entitled to convert each such B/A Equivalent Loan into another type of Loan, or to roll over each such B/A Equivalent Loan into another B/A Equivalent Loan, all in accordance with the applicable provisions of this Agreement. For greater certainty, unless the context requires otherwise, all provisions of this Agreement which are applicable to Bankers’ Acceptances are also applicable, mutatis mutandis, to B/A Equivalent Loans.
