LC Bank Fees Clause Samples
The LC Bank Fees clause defines which party is responsible for paying the banking charges associated with the issuance and handling of a Letter of Credit (LC) in a transaction. Typically, this clause specifies whether the buyer, seller, or both will bear costs such as opening, advising, confirming, and negotiating the LC. For example, it may state that the buyer pays for issuance fees while the seller covers confirmation charges. The core function of this clause is to allocate financial responsibility for bank-related expenses, thereby preventing disputes and ensuring transparency in international trade transactions.
LC Bank Fees. The Borrower hereby agrees to pay directly to an LC Bank upon issuance of, drawing under, and/or amendment of, a Letter of Credit issued by it such amount as shall at the time of such issuance, drawing or amendment by the administrative charge which such LC Bank is customarily charging for issuances of, drawings under or amendments of, letter of credit issued by it.
LC Bank Fees. The Borrower hereby agrees to pay directly to an LC Bank upon issuance of, drawing under, and/or amendment of, a Letter of Credit issued by it such amount as shall at the time of such issuance, drawing or amendment be the administrative charge which such LC Bank is customarily charging for issuances of, drawings under or amendments of, letters of credit issued by it. The Borrower hereby agrees to pay to each LC Bank for its own account a fronting fee equal to 0.125% per annum (or in the event Applicable Rating Level VI or lower is in effect, 0.250%) of the stated amount of such Letter of Credit; provided, that for each Letter of Credit issued or extended from and after the Restatement Effective Date, such fronting fee shall be equal to 0.250% per annum regardless of the Applicable Rating Level, payable quarterly in arrears on each Quarterly Payment Date after the issuance thereof, calculated based upon the actual number of days elapsed, on the basis of a year of 360 days.
LC Bank Fees. The Borrower hereby agrees to pay directly to an LC Bank upon issuance of, drawing under, and/or amendment of, a Letter of Credit issued by it such amount as shall at the time of such issuance, drawing or amendment be the administrative charge which such LC Bank is customarily charging for issuances of, drawings under or amendments of, letters of credit issued by it. The Borrower hereby agrees to pay to each LC Bank for its own account a fronting fee equal to 0.125% per annum (or in the event Applicable Rating Level VI or lower is in effect, 0.250%) of the stated amount of such Letter of Credit, payable quarterly in arrears on each Quarterly Payment Date after the issuance thereof, calculated based upon the actual number of days elapsed, on the basis of a year of 360 days.
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LC Bank Fees. The Borrower hereby agrees to pay directly to an LC Bank upon issuance of, drawing under, and/or amendment of, a Letter of Credit issued by it such amount as shall at the time of such issuance, drawing or amendment be the administrative charge which such LC Bank is customarily charging for issuances of, drawings under or amendments of, letters of credit issued by it. The Borrower also agrees to pay to each LC Bank such other fees, if any, as may be separately agreed upon by the Borrower and such LC Bank with respect to Letters of Credit issued by such LC Bank.
LC Bank Fees. The Borrower shall pay directly to each LC Bank the letter of credit fees, if any, specified to be paid pursuant to the terms of the LC Bank Agreement to which such LC Bank is a party at the times and in the manner specified in such LC Bank Agreement.