Bankers' Acceptance Facility. Subject to the terms and conditions set forth in this Credit Agreement and the execution by the Borrowers of an Acceptance Agreement in the Acceptance Bank's customary form (the "Acceptance Agreement"), upon the written request of the Borrowers, the Acceptance Bank, on behalf of the Lenders, and in reliance upon the agreement of the Lenders set forth in ss.4.2(b) hereof and upon the representations and warranties of the Borrowers contained herein, agrees, in its individual capacity, to discount Eligible Drafts for the account of the Borrowers (all such accepted and discounted Eligible Drafts whether heretofore or hereafter issued being referred to individually as a "Bankers' Acceptance" and collectively as the "Bankers' Acceptances"); provided, however, that (i) any Bankers' Acceptance issued shall provide for a maturity date not longer than one hundred and twenty (120) days; (ii) in no event shall such maturity extend beyond the Maturity Date; (iii) after giving effect to such request, the sum of (A) the Maximum Drawing Amount (B) the Acceptance Face Amount, (C) all Unpaid Reimbursement Obligations, and (D) the amount of any Loans outstanding shall not exceed the Total Commitment; and (iv) the Acceptance Bank shall not accept an Eligible Draft if the face amount of all outstanding drafts accepted by the Acceptance Bank which are of the type described in paragraph 7 of Section 13 of the Federal Reserve Act (12 U.S.C. ss.372), as amended from time to time, or any successor statute, would cause the Acceptance Bank to violate any limitation imposed upon it under said paragraph or would cause the Acceptance Bank to violate such limitation if all such drafts were sold by the Acceptance Bank in the secondary market. To expedite the acceptance and discounting of Eligible Drafts, the Borrowers shall provide to the Acceptance Bank fully executed drafts, which shall be blank as to dates and amounts. The Borrowers may request the Acceptance Bank to accept and discount an Eligible Draft by submitting to the Acceptance Bank at least one (1) Business Day prior to the proposed date of acceptance and discounting a bankers' acceptance application in the Acceptance Bank's customary form, completed to the satisfaction of the Acceptance Bank and accompanied by such documents as may be required by the Acceptance Bank to establish that the drafts to be accepted and discounted will (if accepted and endorsed by a member bank of the Federal Reserve System) be eligible for discount...
Bankers' Acceptance Facility
