Common use of Issue of Letter of Credit Clause in Contracts

Issue of Letter of Credit. (a) Upon receipt of a Utilisation Request for a Letter of Credit complying with the terms of this Agreement, the Facility Agent shall promptly send to each Lender and the Issuing Bank a copy of that Utilisation Request. (b) It shall be a condition to the issue of the Letter of Credit requested in a Utilisation Request that the form of that Letter of Credit, if different from the form set out in Schedule 12, shall have been approved by the Facility Agent and the Issuing Bank and that the LC Termination Date for that Letter of Credit shall not fall later than 18 March 2015. (c) The Facility Agent and the Issuing Bank shall review the form of Letter of Credit requested by the Borrower (if different from the form set out in Schedule 12) and shall, as soon as practicable and, in any event, by no later than the date falling three (3) Business Days before the date on which the Letter of Credit is to be issued (as specified in the Utilisation Request), notify the Borrower whether it approves the Letter of Credit (if different from the form set out in Schedule 12 or not complying with the provisions of this clause 6). (d) Subject to the provisions of this clause 6 and the other terms and conditions of this Agreement, the Issuing Bank shall, on the date specified in the applicable Utilisation Request, issue the Letter of Credit so requested in that Utilisation Request (in an amount up to the Available Commitment in respect of the LC Facility, as specified in that Utilisation Request) by delivery thereof to the LC Beneficiary (and each of the LC Lenders, the Facility Agent and the Borrower hereby irrevocably and unconditionally authorises and instructs the Issuing Bank to do so). Promptly following the issue of the Letter of Credit, the Issuing Bank shall provide to the Facility Agent and the Borrower, and the Facility Agent shall provide to each of the LC Lenders, a copy of the executed version thereof. The Issuing Bank shall not agree to any amendment to a Letter of Credit without the prior written consent of the Borrower. The Issuing Bank shall promptly notify the Facility Agent of any such amendment. The Issuing Bank shall take such actions as are reasonably requested by the Borrower to ensure that on a novation of the Charter by the Charterer permitted under this Agreement any Letter of Credit is amended, re-issued or transferred, such that the Charterer following such novation is the beneficiary under that Letter of Credit. All pre-agreed costs incurred by the Issuing Bank in connection with such novation shall be borne by the Borrower.

Issue of Letter of Credit. (a) Upon receipt Subject to paragraph (b), each Letter of Credit issued will be a Multiple Lender Letter of Credit. (b) If a Borrower notifies the Facility Agent in a Request that a beneficiary will not accept a Multiple Lender Letter of Credit, the Facility Agent shall instead issue to that beneficiary in accordance with this Clause 5, Single Lender Letters of Credit with an aggregate amount equal to the Multiple Lender Letter of Credit which would otherwise have been issued (provided that that beneficiary has first returned to the Facility Agent and cancelled any Multiple Lender Letter of Credit issued to it in substitution for which the Single Lender Letters of Credit are to be issued). (c) Each set of Single Lender Letters of Credit issued instead of a Utilisation Request Multiple Lender Letter of Credit to a beneficiary pursuant to paragraph (b) is an LC Series. References in Clause 5.2 (d) to a minimum amount for a Letter of Credit complying with the terms of this Agreement, the Facility Agent shall promptly send to each Lender and the Issuing Bank a copy of that Utilisation Request. (b) It shall be a condition refer to the issue aggregate amount of the Letter Single Lender Letters of Credit requested in a Utilisation Request that the form same LC Series. The aggregate amount of that Letter of Credit, if different from the form set out in Schedule 12, shall have been approved by the Facility Agent and the Issuing Bank and that the LC Termination Date for that Letter Single Lender Letters of Credit and Loans made in connection therewith shall not fall later than 18 March 2015. at any time exceed US$75,000,000 (c) The Facility Agent and the Issuing Bank shall review the form of Letter of Credit requested by the Borrower (if different from the form set out in Schedule 12) and shall, as soon as practicable and, in any event, by no later than the date falling three (3) Business Days before the date on which the Letter of Credit is to be issued (as specified in the Utilisation Request), notify the Borrower whether it approves the Letter of Credit (if different from the form set out in Schedule 12 or not complying with the provisions of this clause 6its equivalent). (d) Subject to The Facility Agent must promptly notify each Lender of: (i) the provisions details of this clause 6 the requested Letter of Credit; (ii) whether the Letter of Credit is a Multiple Lender of Credit or a Single Lender Letter of Credit; (iii) in the case of a Multiple Lender Letter of Credit, the amount of its share of that Letter of Credit; and (iv) in the case of a Single Lender Letter of Credit, the amount of that Letter of Credit and the other terms aggregate amount of the Letters of Credit in the same LC Series. (e) The amount of each Lender’s share in a Multiple Lender Letter of Credit will be its Pro Rata Share on the proposed Utilisation Date. The amount of each Lender’s Single Lender Letter of Credit will be its Pro Rata Share of the aggregate amount of all the Single Lender Letters of Credit in the same LC Series on the proposed Utilisation Date. Where a Lender is not able to participate in a Multiple Lender Letter of Credit or have issued on its behalf a Single Lender Letter of Credit by reason of it not being an NAIC Approved Bank and conditions of this not having entered into a Confirming Bank Agreement, the Issuing Bank shall, Commitment of that Lender shall be ignored for the purposes of the definition of Total Commitments and the calculation of each other Lender’s Pro Rata Share in connection with that Letter of Credit or that LC Series. (f) No Lender is obliged to participate in any Letter of Credit (and the Facility Agent shall not issue any Letter of Credit on the date specified its behalf) if as a result: (i) a Lender’s share in the applicable Utilisation RequestCredits (including, for the avoidance of doubt and without limitation, any Credits in respect of which cash cover or Required Security has been provided) would exceed its Commitment; or (ii) the Credits (including, for the avoidance of doubt and without limitation, any Credits in respect of which cash cover or Required Security has been provided) would exceed the Total Commitments. (g) If the conditions set out in this Agreement have been met, the Facility Agent must: (i) (in the case of a Multiple Lender Letter of Credit) issue the Letter of Credit so requested on behalf of the Lenders severally in that their Pro Rata Shares on the Utilisation Request Date; or (ii) (in an the case of Single Lender Letters of Credit) issue a Letter of Credit on behalf of each Lender in the amount up to the Available Commitment determined in respect of the LC Facility, as specified in that Utilisation Requestaccordance with paragraph (e). (h) by delivery thereof to the LC Beneficiary (and each of the LC Lenders, Each Lender irrevocably authorises the Facility Agent to issue and the Borrower hereby irrevocably sign Letters of Credit in its name and unconditionally authorises and instructs the Issuing Bank to do so)on its behalf in accordance with this Subclause. Promptly following upon the issue of the Letter of CreditFacility Agent’s request, the Issuing Bank shall provide each Lender will deliver to the Facility Agent and the Borrower, and such powers of attorney or other evidence of authority as the Facility Agent shall provide to each or any beneficiary of the LC Lenders, a copy of the executed version thereof. The Issuing Bank shall not agree to any amendment to a Letter of Credit without the prior written consent of the Borrower. The Issuing Bank shall promptly notify may request in connection with the Facility Agent of any such amendment. The Issuing Bank shall take such actions as are reasonably requested by the Borrower Agent’s authority to ensure that on a novation of the Charter by the Charterer permitted under this Agreement issue any Letter of Credit is amended, re-issued or transferred, such that the Charterer following such novation is the beneficiary under that Letter of Credit. All pre-agreed costs incurred by the Issuing Bank in connection with such novation shall be borne by the Borrower.