Common use of EFFECTS OF DRAWINGS Clause in Contracts

EFFECTS OF DRAWINGS. Upon the payment by the Letter of Credit Bank in respect of each drawing under a Letter of Credit, the unreimbursed amount of the payment shall be deemed to be a Revolving Credit Loan that is a Base Rate Loan, made on the date of such payment by the Letter of Credit Bank, for all purposes of this Agreement. The liability of the Borrower under this Agreement to repay the Banks in respect of drawings under Letters of Credit shall be Obligations hereunder and shall be secured pursuant to the Security Documents.

EFFECTS OF DRAWINGS. Upon the payment by the Letter of Credit Bank in respect of each drawing under a Letter of CreditCredit and each termination of a Letter of Credit pursuant to its terms, the unreimbursed un-reimbursed amount of the payment drawing shall automatically be deemed to be a converted into an Advance under the Revolving Credit Loan that is a Base Rate Loan, made on the date of such payment by the Letter of Credit Bank, for all purposes of this Agreementdrawing or such termination. The liability of the Borrower under this Agreement to repay the Banks in respect of drawings under Letters of Credit shall be Obligations hereunder and such shall be secured pursuant rank pari passu with the obligations of the Borrower to repay all other Advances under the Security DocumentsRevolving Credit Loan hereunder.