Common use of LC Obligations in Excess of Borrowing Base Clause in Contracts

LC Obligations in Excess of Borrowing Base. If, after the making of all mandatory prepayments required under Section 2.7(a), the outstanding LC Obligations will exceed the Borrowing Base, then in addition to prepayment of the entire principal balance of the Revolving Credit Loans Borrower will immediately pay to LC Issuer an amount equal to such excess. LC Issuer will hold such amount as security for the remaining LC Obligations (all such amounts held as security for LC Obligations being herein collectively called "LC Collateral") until such LC Obligations become Matured LC Obligations, at which time such LC Collateral may be applied to such Matured LC Obligations. So long as no Default has occurred and is continuing, if such LC Obligations shall expire or otherwise terminate without a drawing or other demand for payment, or if the Borrowing Base shall increase such that the Borrowing Base exceeds the Revolving Credit Facility Usage, LC Collateral in an amount equal to such expired or terminated and undrawn LC Obligation shall be returned to Borrower. Neither this subsection nor the following subsection shall, however, limit or impair any rights which LC Issuer may have under any other document or agreement relating to any Letter of Credit or LC Obligation, including any LC Application, or any rights which any Bank Party may have to otherwise apply any payments by Borrower and any LC Collateral under Section 3.1.

LC Obligations in Excess of Borrowing Base. If, after the making of all mandatory prepayments required under Section 2.7(a)2.6, the outstanding LC Obligations will exceed the sum of the Borrowing BaseBase and the Over-Advance Facility, then in addition to prepayment of the entire principal balance of the Revolving Credit Loans Borrower will immediately pay to LC Issuer an amount equal to such excess. If at any time prior to the termination of the Salomon Facility and all Salomon Guaranty Exposure and the payment in full of all Salomon Obligations, after the making of all mandatory prepayments required under Section 2.6, the outstanding Facility Usage plus the Salomon Guaranty Exposure exceeds the sum of the Borrowing Base and the Over-Advance Facility, then in addition to prepayment of the entire principal balance of the Loans Borrower will immediately pay to LC Issuer an amount equal to such excess. LC Issuer will hold such amount amounts as collateral security for the remaining LC Obligations (all such amounts held as collateral security for LC Obligations being herein collectively called "LC Collateral") until such LC Obligations become Matured LC and the other Obligations, at which time and such LC Collateral collateral may be applied from time to such time to pay Matured LC Obligations. So long as no Default has occurred Obligations or any other Obligations which are then due and is continuing, if such LC Obligations shall expire or otherwise terminate without a drawing or other demand for payment, or if the Borrowing Base shall increase such that the Borrowing Base exceeds the Revolving Credit Facility Usage, LC Collateral in an amount equal to such expired or terminated and undrawn LC Obligation shall be returned to Borrowerpayable. Neither this subsection nor the following subsection shall, however, limit or impair any rights which LC Issuer may have under any other document or agreement relating to any Letter of Credit Credit, LC Collateral or LC Obligation, including any LC Application, or any rights which any Bank Lender Party may have to otherwise apply any payments by Borrower and any LC Collateral under Section 3.1.

LC Obligations in Excess of Borrowing Base. If, after the making of all mandatory prepayments required under Section 2.7(a2.07(b), the outstanding LC Obligations will exceed the Borrowing Base, then in addition to prepayment of the entire principal balance of the Revolving Credit Loans Borrower Loans, the Company will immediately pay to LC Issuer an amount equal to such excess. LC Issuer will hold such amount as security for the remaining LC Obligations (all such amounts held as security for LC Obligations being herein collectively called "LC Collateral") until such LC Obligations become Matured LC Obligations, at which time such LC Collateral may be applied to such Matured LC Obligations. So long as no Default has occurred and is continuing, if such LC Obligations shall expire or otherwise terminate without a drawing or other demand for payment, or if the Borrowing Base shall increase such that the Borrowing Base exceeds the Revolving Credit Facility Usage, LC Collateral in an amount equal to such expired or terminated and undrawn LC Obligation shall be returned to Borrowerthe Company. Neither this subsection nor the following subsection shall, however, limit or impair any rights which LC Issuer may have under any other document or agreement relating to any Letter of Credit or LC Obligation, including any LC Application, or any rights which any Bank Party may have to otherwise apply any payments by Borrower the Company and any LC Collateral under Section 3.14.01.

LC Obligations in Excess of Borrowing Base. If, after the making of all mandatory prepayments required under Section 2.7(a)2.6, the outstanding LC Obligations will exceed the Borrowing Base, then in addition to prepayment of the entire principal balance of the Revolving Credit Loans Borrower will immediately pay to LC Issuer an amount equal to such excess. If at any time prior to the termination of the Salomon Facility and all Salomon Guaranty Exposure and the payment in full of all Salomon Obligations, after the making of all mandatory prepayments required under Section 2.6, the outstanding Facility Usage plus the Salomon Guaranty Exposure exceeds the Borrowing Base, then in addition to prepayment of the entire principal balance of the Loans Borrower will immediately pay to LC Issuer an amount equal to such excess. LC Issuer will hold such amount amounts as collateral security for the remaining LC Obligations (all such amounts held as collateral security for LC Obligations being herein collectively called "LC Collateral") until such LC Obligations become Matured LC and the other Obligations, at which time and such LC Collateral collateral may be applied from time to such time to pay Matured LC Obligations. So long as no Default has occurred Obligations or any other Obligations which are then due and is continuing, if such LC Obligations shall expire or otherwise terminate without a drawing or other demand for payment, or if the Borrowing Base shall increase such that the Borrowing Base exceeds the Revolving Credit Facility Usage, LC Collateral in an amount equal to such expired or terminated and undrawn LC Obligation shall be returned to Borrowerpayable. Neither this subsection nor the following subsection shall, however, limit or impair any rights which LC Issuer may have under any other document or agreement relating to any Letter of Credit Credit, LC Collateral or LC Obligation, including any LC Application, or any rights which any Bank Lender Party may have to otherwise apply any payments by Borrower and any LC Collateral under Section 3.1.

LC Obligations in Excess of Borrowing Base. If, after the making of all mandatory prepayments required under Section 2.7(a)2.7, the principal balance of the Loans is zero, but the outstanding LC Obligations will exceed the Borrowing Base, then in addition to such prepayment of the entire principal balance of the Revolving Credit Loans Borrower will immediately pay to LC Issuer an amount equal to such excess. LC Issuer will hold such amount as security for the remaining LC Obligations (all such amounts held as security for LC Obligations being herein collectively called "LC Collateral") until (i) such LC Obligations become Matured LC Obligations, at which time such LC Collateral may be applied to such Matured LC Obligations. So long as no Default has occurred and is continuing, if Obligations or (ii) such LC Obligations shall expire or otherwise terminate without a drawing or other demand for payment, or if the Borrowing Base shall increase such that the Borrowing Base exceeds the Revolving Credit Facility Usage, at which time any LC Collateral in an amount equal to such expired or terminated and undrawn excess of any remaining LC Obligation shall Obligations will be returned to Borrower. Neither this subsection nor the following subsection shall, however, limit or impair any rights which LC Issuer may have under any other document or agreement relating to any Letter of Credit Credit, LC Collateral or LC Obligation, including any LC Application, or any rights which any Bank Party may have to otherwise apply any payments by Borrower and any LC Collateral under Section 3.1.