Common use of Fronting Fee and Administrative Charges Clause in Contracts

Fronting Fee and Administrative Charges. The Borrower shall pay to the Letter of Credit Issuer, for its own account, in consideration of the issuance and fronting of Letters of Credit, a fronting fee with respect to each Letter of Credit, at a rate equal to the greater of (a) 0.125% per annum, computed on the face amount available to be drawn under such Letter of Credit, or (b) $500.00. Such fronting fee shall be due and payable upon the issuance of any Letter of Credit and upon any extension thereof. In addition, the Borrower shall pay directly to the Letter of Credit Issuer for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the Letter of Credit Issuer relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable.