Fronting fee and Bonding fee Clause Samples

Fronting fee and Bonding fee. (a) The Bond Borrower shall pay to the relevant Fronting Bank a fronting fee in respect of each Bond issued at its request in the amount and at the times agreed in a Fee Letter between that Fronting Bank and the Company. (b) Each Bond Borrower shall pay to the Facilities Agent (for the account of each Lender) for each Bond requested by it a bonding fee in US Dollars computed at the applicable Margin on the daily outstanding amount of that Bond for the period from the issue of that Bond until and including its Expiry Date or, following a claim under such Bond, until and including the date of reimbursement of the full amount of such claim to the relevant Fronting Bank whether pursuant to Clause 7.1(b), 7.3(a) or otherwise or, where the Lenders have made any payment to the relevant Fronting Bank under Clause 7.3, the date on which each such Lender is reimbursed in full by an Obligor pursuant to Clause 7.3(d) or otherwise (the Reimbursement Date). This fee shall be distributed according to each Lender’s Bond Proportion of that Bond. (c) The accrued bonding fee on a Bond (if any) shall be payable quarterly in arrear starting on the date falling three months after the date of the Agreement and the dates falling quarterly thereafter. (d) If a Bond Borrower cash covers any part of a Bond then: (i) the fronting fee payable to the relevant Fronting Bank and the bonding fee payable for the account of each Lender shall continue to be payable in accordance with Clause 16.7(b); and (ii) the Bond Borrower will be entitled to withdraw the interest accrued on the cash cover to pay those fees.