Independence; Applicant Responsibility Sample Clauses

Independence; Applicant Responsibility. Applicant is responsible for preparing or approving the text of the Credit as issued by Bank and as received by any Beneficiary, including responsibility for any terms and conditions thereof that are ineffective, ambiguous, inconsistent, unduly complicated, or reasonably impossible to satisfy. Applicant's ultimate responsibility for the final text shall not be affected by any assistance Bank may provide such as drafting or recommending text or by Bank's use or refusal to use text submitted by Applicant. Bank does not represent or warrant that the Credit will satisfy Applicant's requirements or intentions. Applicant is responsible for the suitability of the Credit for Applicant's purposes. Applicant will examine the copy of the Credit, and any other documents sent by Bank in connection with the Credit, and shall notify Bank of any non-compliance with Applicant's instructions, and of any discrepancy in any document under any presentment or other irregularity, within 3 Business Days after Applicant receives or should have received any of such documents (the "Required Time"); provided, however, if the end of the Required Time falls on a weekend or Bank holiday, the deadline shall be extended to the end of the next Business Day. Applicant's failure to give timely and specific notice during the Required Time of objection shall automatically waive Applicant's objection, authorize or ratify Bank's action or inaction, and preclude Applicant from raising the objection as a defense or claim against Bank.

Independence; Applicant Responsibility. (a) Applicant acknowledges that the rights and obligations of Issuer under each Credit are independent of the existence, performance or nonperformance of any contract or arrangement underlying any Credit, including contracts or arrangements between Issuer and Applicant and contracts or arrangements between Applicant and the Beneficiary. Issuer shall use reasonable efforts but shall have no duty to notify Applicant of Issuer’s (i) receipt of a request for an amendment, termination, or assignment of letter of credit proceeds, (ii) receipt of a presentation under any Credit, (iii) any other action or inaction toward the Beneficiary or any nominated Person, except after honor to notify Applicant of honor of a presentation, (iv) detection of any discrepancy, (v) facilitation of a cure of any discrepancy, or (vi) decision to honor or dishonor any presentation. Issuer may, without incurring any liability to Applicant or impairing its entitlement to reimbursement or indemnity under this Agreement, (A) honor each Credit despite notice from Applicant of, and without any duty to inquire into, any defense to honor or any adverse claim or other right against the Beneficiary or any other Person, or (B) dishonor any Credit for fraud or forgery. Issuer shall have no duty to request or require the presentation of any document, including any default certificate, not required to be presented under the terms and conditions of any Credit. Issuer shall have no duty to seek any waiver of discrepancies from Applicant, nor any duty to grant any waiver of discrepancies which Applicant approves or requests. (b) Applicant is responsible for preparing or approving the text of any Credit. Applicant’s ultimate responsibility for the final text shall not be affected by any assistance Issuer may provide, such as drafting or recommending text, or by Issuer’s use or refusal to use text submitted by Applicant. Applicant acknowledges that Applicant has been represented by legal counsel of its choice in connection with the execution and delivery of this Agreement, that Issuer does not represent or warrant that any Credit will satisfy Applicant’s requirements or intentions, and that Applicant is responsible for the suitability of any Credit for Applicant’s purposes. As between Applicant and Issuer, Applicant assumes all risk for the acts or omissions of beneficiaries of Credits.