Common use of Banks’ Indemnities Clause in Contracts

Banks’ Indemnities. 4.5.1 Each Bank shall (according to its Commitment) immediately on demand indemnify the Issuing Bank against any cost, loss or liability incurred by the Issuing Bank (otherwise than by reason of the Issuing Bank’s fraud, misconduct or negligence) in acting as the Issuing Bank under any Letter of Credit (unless the Issuing Bank has been reimbursed by an Obligor pursuant to a Finance Document). 4.5.2 The obligations of each Bank under this Clause are continuing obligations and will extend to the ultimate balance of sums payable by that Bank in respect of any Letter of Credit, regardless of any intermediate payment or discharge in whole or in part. 4.5.3 The obligations of any Bank under this Clause will not be affected by any act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause (without limitation and whether or not known to it or any other person) including: (a) any time, waiver or consent granted to, or composition with, any Obligor, any beneficiary under a Letter of Credit or other person; (b) the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor or any Obligor; (c) the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor, any beneficiary under a Letter of Credit or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; (d) any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor, any beneficiary under a Letter of Credit or any other person; (e) any amendment (however fundamental) or replacement of a Finance Document, any Letter of Credit or any other document or security; (f) any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document, any Letter of Credit or any other document or security; or (g) any insolvency or similar proceedings.

Banks’ Indemnities. 4.5.1 (a) Each Bank shall (according to its Commitment) immediately on demand indemnify the Issuing each Service Bank against any cost, loss or liability incurred by the Issuing such Service Bank (otherwise than by reason of the Issuing such Service Bank’s fraud, misconduct negligence or negligencemisconduct) in acting as the Issuing a Service Bank under in connection with any Letter of Credit (unless the Issuing such Service Bank has been reimbursed by an Obligor pursuant to a Finance Document). 4.5.2 (b) The obligations of each Bank under this Clause are continuing obligations and will extend to the ultimate balance of sums payable by that Bank in respect of any Letter of Credit, regardless of any intermediate payment or discharge in whole or in part. 4.5.3 (c) The obligations of any Bank under this Clause will not be affected by any act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause (without limitation and whether or not known to it or any other personPerson) including: (ai) any time, waiver or consent granted to, or composition with, any Obligor, any beneficiary under a Letter of Credit or other personPerson; (bii) the release of any other Obligor or any other person Person under the terms of any composition or arrangement with any creditor or any Obligor; (ciii) the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security Security over assets of, any Obligor, any beneficiary under a Letter of Credit or other person Person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any securitySecurity; (div) any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor, any beneficiary under a Letter of Credit or any other personPerson; (ev) any amendment (however fundamental) or replacement of a Finance Document, any Letter of Credit or any other document or securitySecurity; (fvi) any unenforceability, illegality or invalidity of any obligation of any person Person under any Finance Document, any Letter of Credit or any other document or securitySecurity; or (gvii) any insolvency or similar proceedings.