Common use of Drawing Under Letter of Credit Clause in Contracts

Drawing Under Letter of Credit. Upon receipt from the beneficiary of any Letter of Credit of any demand for payment under such Letter of Credit, the applicable Fronting Lender shall promptly notify the Principal Borrower and the Agent thereof. If the applicable Fronting Lender notifies the Principal Borrower of such payment prior to 12:00 noon (Toronto time) on the date of any payment by the applicable Fronting Lender under a Letter of Credit (each such date, an “Honor Date”), the Principal Borrower shall reimburse the applicable Fronting Lender through the Agent in an amount equal to the amount of such drawing by no later than the next succeeding Banking Day and such extension of time shall be reflected in computing fees in respect of any such Letter of Credit. If the Principal Borrower fails to so reimburse the applicable Fronting Lender by such time, the Principal Borrower shall be deemed to have effected a Conversion of such Letter of Credit to Prime Loans (in the case of a Letter of Credit denominated in Canadian Dollars) or USBR Loans (in the case of a Letter of Credit denominated in US Dollars), to be disbursed on the Honor Date in an amount equal to unreimbursed drawing (the “Unreimbursed Amount”), without regard to the minimum and multiples specified in Section 2.5 or whether there is compliance with any of the conditions set forth in Section 3.2. Such deemed Conversion shall be to a Working Capital Loan. The Agent shall promptly notify each Working Capital Facility Lender of the Honor Date, the Unreimbursed Amount, and the amount of such Working Capital Facility Lender’s pro rata share thereof. Any notice given by a Fronting Lender or the Agent pursuant to this Section 6.3(a) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

Drawing Under Letter of Credit. Upon receipt from the beneficiary of any Letter of Credit of any demand for payment under such Letter of Credit, the applicable Fronting Lender shall promptly notify the Principal Borrower and the Agent thereof. If the applicable Fronting Lender notifies the Principal Borrower of such payment prior to 12:00 noon (Toronto time) on the date of any payment by the applicable Fronting Lender under a Letter of Credit (each such date, an “Honor Date”), the Principal Borrower shall reimburse the applicable Fronting Lender through the Agent in an amount equal to the amount of such drawing by no later than the next succeeding Banking Day and such extension of time shall be reflected in computing fees in respect of any such Letter of Credit. If the Principal Borrower fails to so reimburse the applicable Fronting Lender by such time, the Principal Borrower shall be deemed to have effected a Conversion of such Letter of Credit to Prime Loans (in the case of a Letter of Credit denominated in Canadian Dollars) or USBR Loans (in the case of a Letter of Credit denominated in US Dollars), to be disbursed on the Honor Date in an amount equal to unreimbursed drawing (the “Unreimbursed Amount”), without regard to the minimum and multiples specified in Section 2.5 2.3 or whether there is compliance with any of the conditions set forth in Section 3.2. Such deemed Conversion shall be to a Working Capital Loan. The Agent shall promptly notify each Working Capital Facility Lender of the Honor Date, the Unreimbursed Amount, and the amount of such Working Capital Facility Lender’s pro rata share thereof. Any notice given by a Fronting Lender or the Agent pursuant to this Section 6.3(a) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

Drawing Under Letter of Credit. Upon receipt from the beneficiary of any Letter of Credit of any demand for payment under such Letter of Credit, the applicable Fronting Lender LC Issuer shall promptly notify the Principal Borrower and the Agent thereof. If the applicable Fronting Lender LC Issuer notifies the Principal Borrower of such payment prior to 12:00 noon (Toronto time) on the date of any payment by the applicable Fronting Lender LC Issuer under a Letter of Credit (each such date, an “Honor Date”), the Principal Borrower shall reimburse the applicable Fronting Lender LC Issuer through the Agent in an amount equal to the amount of such drawing by no later than the next succeeding Banking Day and such extension of time shall be reflected in computing fees in respect of any such Letter of Credit. If the Principal Borrower fails to so reimburse the applicable Fronting Lender LC Issuer by such time, the Principal Borrower shall be deemed to have effected a Conversion of such Letter of Credit to Prime Loans (in the case of a Letter of Credit denominated in Canadian Dollars) or USBR Loans (in the case of a Letter of Credit denominated in US Dollars)) under the same Tranche under which the applicable Letter of Credit was issued, to be disbursed on the Honor Date in an amount equal to unreimbursed drawing (the “Unreimbursed Amount”), without regard to the minimum and multiples specified in Section 2.5 2.3 or whether there is compliance with any of the conditions set forth in Section 3.2. Such deemed Conversion shall be to a Working Capital Loan. The Agent shall promptly notify each Working Capital Facility applicable Lender of the Honor Date, the Unreimbursed Amount, and the amount of such Working Capital Facility Lender’s pro rata share thereof. Any notice given by a Fronting Lender LC Issuer or the Agent pursuant to this Section 6.3(a) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.