Common use of Capital Adequacy and Additional Costs Clause in Contracts

Capital Adequacy and Additional Costs. (a) The Borrower shall pay directly to each Lender from time to time on request such amounts as such Lender may determine to be necessary to compensate such Lender or its parent or holding company for any costs which it determines are attributable to the maintenance by such Lender or its parent or holding company, pursuant to any change in, or the introduction, adoption, reinterpretation or phase-in of, any Governmental Requirement after the Closing Date, of capital in respect of its Commitment or making, funding or maintaining any Loans or Letters of Credit (such compensation to include, without limitation, an amount equal to any reduction of the rate of return on assets or equity of such Lender or its parent or holding company to a level below that which such Lender or its parent or holding company could have achieved but for such Governmental Requirement). Each Lender will notify the Borrower that it is entitled to compensation pursuant to this Section 5.01(a) as promptly as practicable after it determines to request such compensation. (b) Determinations and allocations by any Lender for purposes of this Article V shall be conclusive, absent manifest error and provided that such determinations and allocations are made on a reasonable basis.

Capital Adequacy and Additional Costs. (a) The Borrower shall pay directly to each Lender from time to time on request such amounts as such Lender may determine to be necessary to compensate such Lender or its parent or holding company for any costs which it determines are attributable to the maintenance by such Lender or its parent or holding company, pursuant to any change in, or the introduction, adoption, reinterpretation or phase-in of, any Governmental Requirement after the Closing Date, of capital in respect of its Commitment or making, funding or maintaining any Loans or Letters of Credit (such compensation to include, without limitation, an amount equal to any reduction of the rate of return on assets or equity of such Lender or its parent or holding company to a level below that which such Lender or its parent or holding company could have achieved but for such Governmental Requirement). Each Lender will notify the Borrower that it is entitled to compensation pursuant to this Section Subsection 5.01(a) as promptly as practicable after it determines to request such compensation. (b) Determinations and allocations by any Lender for purposes of this Article V shall be conclusive, absent manifest error and provided that such determinations and allocations are made on a reasonable basis.