Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Unless Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding.
Appears in 2 contracts
Samples: Loan and Security Agreement, Loan and Security Agreement (Masergy Communications Inc)
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower Borrowers set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower Borrowers such Letters of Credit as Borrower Borrowers may request by delivering to Bank a duly executed letter of credit application on Bank’s standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower Borrowers will pay to Bank a Letter of Credit fee equal to one percent (1.00%) per annum of the face amount of each Letter of Credit outstanding under the Letter of Credit Sublimit, payable annually in advance (the “Letter of Credit Fee”), and will pay any other standard issuance and other fees that Bank notifies Borrower Borrowers it will be charged charge for issuing and processing Letters of Credit; provided that the Letter of Credit Fee for any Letters of Credit issued by Bank that are cash-secured on terms satisfactory to Bank shall be one percent (1.00%). Unless Borrower If, on the Revolving Maturity Date, there are any outstanding Letters of Credit, then on such date Borrowers shall have deposited with provide to Bank cash collateral in an amount sufficient equal to cover 105% of the face amount of all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Dateplus all interest, thenfees, effective and costs due or to become due in connection therewith (as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued estimated by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificatesits good faith business judgment), shall automatically to secure such obligations to the extent all of the then outstanding and undrawn Obligations relating to said Letters of Credit.
3. Borrower authorizes Bank Section 2.1(c) of the Agreement is hereby amended and restated in its entirely to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long read as the Letters of Credit are outstanding.follows:
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application this Agreement, and letter as a sublimit of the Revolving Credit Commitment, during the period from the effective date of this Agreement to but excluding the Revolving Credit Commitment Termination Date, provided that no Default or Event of Default then has occurred and is continuing, Bank shall issue, for the account of Borrower, one or more irrevocable commercial or standby letters of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing (collectively, the "Letters of Credit," and individually, a "Letter of Credit") upon Borrower’s request. Unless Borrower The parties specifically agree that the sum of (a) the aggregate amount available to be drawn under all outstanding Letters of Credit plus (b) the aggregate amount of unpaid reimbursement obligations under drawn Letters of Credit shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such not exceed Ten Million Dollars ($10,000,000) at any one time (the "Letter of Credit Sublimit") and shall reduce, Dollar for Dollar, the amount available to be borrowed under the Revolving Credit Commitment. In the case of any commercial Letter of Credit, such commercial Letter of Credit shall provide for transport documents to be presented in a full set to Bank (and, in case of airway bills, consigned to Bank) and/or at Bank's option, with transport documents presented in less than a full set to Bank and/or consigned to Borrower or to any party other than Bank and calling for drafts at sight covering the importation or purchase of goods in the normal course of Borrower’s business. In the case of any standby Letter of Credit, such standby Letter of Credit shall have agreed be issued for the purpose of supporting Borrower’s worker’s compensation or other insurance obligations or for any other purpose acceptable to Bank. Each Letter of Credit shall be drawn on such terms and conditions as may be acceptable to Bank and shall be governed by the terms of (and Borrower agrees to execute) Bank's standard form Letter of Credit Agreement in writing, no connection therewith. No commercial Letter of Credit shall have an expiration date that is later more than one hundred eighty (180) days from its date of issuance or shall expire after the Revolving Maturity Credit Commitment Termination Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters No standby Letter of Credit by shall have an expiration date more than one (1) year from its date of issuance or shall expire after the Revolving Maturity Commitment Termination Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding.
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, terms and in reliance on the representations and warranties of Borrower conditions set forth hereinin this Agreement, at any time and until the Letter of Credit Expiration Date, Issuing Lender shall take such Letter of Credit Actions as Borrower may from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s standard formrequest; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) the Revolving Outstandings of each Revolving Lender shall not at any time exceed such Quantum Corporation Credit Agreement Revolving Lender’s Revolving Commitment; (ii) the Revolving Outstandings of all Revolving Lenders shall not at any time exceed the combined Revolving Commitments; and (iii) Letter of Credit Usage shall not at any time exceed the Letter of Credit Sublimit. Subject to subsection (g) below and unless consented to by Issuing Lender and Requisite Lenders, no Letter of Credit may expire more than 12 months after the date of its issuance or last renewal. No Letter of Credit shall expire after the Letter of Credit Expiration Date except that, at the option of Administrative Agent, Letters of Credit securing Borrower’s obligations pursuant to workers’ compensation claims may have an expiration date not to exceed six (6) months after the Letter of Credit Expiration Date provided that (A) the aggregate face amount of such Letters of Credit shall not exceed $2,000,000; and (iiB) shall be deemed to constitute Advances for from and after the purpose Letter of calculating availability Credit Expiration Date, the Letter of Credit Usage under the Committed Revolving Line. Any drawn but unreimbursed amounts under any such Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Unless Borrower shall have deposited with Bank fully secured by cash collateral in an amount sufficient equal to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed Usage deposited in writing, no a Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstandingCash Collateral Account.
Appears in 1 contract
Samples: Credit Agreement (Quantum Corp /De/)
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line and the Facility B Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s 's standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances and/or Facility B Advances for the purpose of calculating availability under the Committed Revolving Line and the Facility B Revolving Line, as appropriate. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances and/or Facility B Advances against the Committed Revolving Line or the Facility B Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit, as appropriate. Unless Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any All Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance shall be in any deposit accounts held by Bank form and the certificates of deposit issued by substance acceptable to Bank in Borrower’s name (its sole discretion and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations be subject to the extent terms and conditions of the then outstanding Bank's form application and undrawn letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit."
4. Borrower authorizes Bank Section 2.2 of the Agreement hereby is amended in its entirety to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long read as the Letters of Credit are outstanding.follows:
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at At any time and from time the Borrower is entitled to time from an advance under Facility A, the date hereof through the Business Day immediately prior Bank agrees to the Revolving Maturity Date, Bank shall issue letters of credit for the account of the Borrower such Letters in an amount not in excess of the maximum advance that the Borrower would then be entitled to obtain under Facility A, provided that (a) the aggregate maximum available amount which is drawn and unreimbursed or may be drawn under all letters of credit which are outstanding at any time, including without limitation all letters of credit issued for the account of the Borrower which are outstanding on the date of the Line of Credit as Borrower may request by delivering to Bank a duly executed Note, shall not exceed $5,000,000.00, (b) the issuance of any letter of credit with an expiration date beyond the maturity date of the Line of Credit Note shall be entirely at the discretion of the Bank, (c) any letter of credit shall be a standby letter of credit and the form of the requested letter of credit shall be satisfactory to the Bank, in the Bank's sole discretion, and (d) the Borrower shall have executed an application on and reimbursement agreement for any letter of credit in the Bank’s 's standard form. While any letter of credit is outstanding, the maximum amount of advances that may be outstanding under the Line of Credit Note shall be automatically reduced by the maximum amount available to be drawn under any and all such letters of credit. The Borrower shall pay the Bank a fee for each standby letter of credit that is issued, calculated at the rate of 2% per annum of the original maximum amount available of such standby letter of credit, with such fee being calculated on the basis of a 360-day year and the actual number of days in the period during which the standby letter of credit will be outstanding; provided, however, that such fee shall not be less than $200.00 for each letter of credit. No credit shall be given for fees paid due to early termination of any letter of credit. The Borrower shall also pay the Bank's standard transaction fees with respect to any transactions occurring on an account of any letter of credit. Each fee shall be payable when the related letter of credit is issued, and transaction fees shall be payable upon completion of the transaction as to which they are charged. All fees may be debited by the Bank to any deposit account of the Borrower carried with the Bank without further authority and, in any event, shall be paid by the Borrower within ten (10) days following billing. If on the maturity date of the Line of Credit Note, any letter of credit issued by Bank hereunder remains outstanding, Borrower shall if requested by Bank, within five (5) business days after such request, cause to be placed in a deposit account with Bank which is assigned to Bank to secure Borrower's reimbursement obligation(s) applicable to such outstanding and undrawn letters of credit, cash in an amount which is not less than the aggregate of the unfunded amounts under all such Letters outstanding letters of Credit (i) credit. Failure to timely comply with such request shall not at any time exceed be a default and Event of Default under this agreement and the Letter of Credit Sublimitother loan documents, and (ii) shall be deemed Bank may proceed to constitute Advances for exercise and enforce its rights and remedies against any collateral and utilize the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable proceeds thereof to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Unless Borrower shall have deposited with Bank create such cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstandingdeposit.
Appears in 1 contract
Letter of Credit Sublimit. (a) Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application this Agreement, and letter as a sublimit of the Revolving Credit Commitment, during the period from the date of this Agreement to but excluding the Revolving Credit Commitment Termination Date, provided that no Event of Default then has occurred and is continuing, Bank shall issue, for the account of Borrower, one or more irrevocable commercial or standby letters of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing (collectively, the "Letters of Credit" and individually, a "Letter of Credit") upon Borrower's request. Unless Borrower The sum of (a) the aggregate amount available to be drawn under all outstanding Letters of Credit plus (b) the aggregate amount of unpaid reimbursement obligations under drawn Letters of Credit shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such not exceed Seven Million Dollars ($7,000,000) at any one time (the "Letter of Credit Sublimit") and shall reduce, Dollar for Dollar, the amount available to be borrowed under the Revolving Credit Commitment.
(b) In the case of any commercial Letter of Credit, such commercial Letter of Credit shall be issued for the purpose of financing the importation or purchase of goods in the normal course of business of Borrower or any of its Subsidiaries or for any other purpose acceptable to Bank. Each such commercial Letter of Credit shall provide for transport documents to be presented in a full set to Bank (and, in the case of airway bills, consigned to Bank) and/or at Bank's option, with transport documents presented in less than a full set to Bank and/or consigned to Borrower or to any Person other than Bank and calling for drafts at sight covering the importation or purchase of goods in the normal course of business. In the case of any standby Letter of Credit, such standby Letter of Credit shall have agreed be issued for the purpose of providing credit enhancements with respect to Borrower's workers' compensation insurance arrangements or for any other purpose acceptable to Bank.
(c) Each Letter of Credit shall be drawn on such terms and conditions as are acceptable to Bank and shall be governed by the terms of (and Borrower agrees to execute) Bank's standard form Letter of Credit Agreement in writing, no connection therewith. No commercial Letter of Credit shall have an expiration date that is later more than one (1) year from its date of issuance or shall expire after the Revolving Maturity Credit Commitment Termination Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters No standby Letter of Credit by shall have an expiration date more than one (1) year from its date of issuance or shall expire more than one (1) year after the Revolving Maturity Credit Commitment Termination Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding.
Appears in 1 contract
Letter of Credit Sublimit. Subject to As part of the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such or have issued Letters of Credit as denominated in Dollars or a Foreign Currency for Borrower’s account. The aggregate Dollar Equivalent amount utilized for the issuance of Letters of Credit shall at all times reduce the amount otherwise available for Advances under the Revolving Line. The aggregate Dollar Equivalent of the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) may not exceed the lesser of (A) Three Million Dollars ($3,000,000.00), or (B) the Revolving Line, minus the sum of all outstanding principal amounts of any Advances. The Letters of Credit shall be governed by the terms of this Agreement and by one or more customary reimbursement agreements, in form and content satisfactory to Bank, executed by Borrower may in 238310488 v3 favor of Bank (the “Reimbursement Agreement”). Each request for the issuance of a Letter of Credit must be accompanied by delivering to Bank a duly executed letter Borrower’s execution of credit an application on Bank’s standard form; providedforms, however, that together with all supporting documentation. This Agreement shall control in the outstanding and undrawn amounts under all such Letters event of Credit (i) shall not at any time exceed the conflict with any Reimbursement Agreement or any other related Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Lineapplication. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters Each Letter of Credit shall be in form and substance reasonably acceptable to Bank in its sole discretion discretion. This Agreement is not a pre-advice for the issuance of a letter of credit. Borrower shall pay Bank’s standard issuance fee on the stated amount of each Letter of Credit upon issuance, together with such other customary fees and reasonable expenses therefor as shall be subject required by Bank. Borrower further agrees to be bound by the regulations and interpretations of the issuer of any Letters of Credit guarantied by Bank and opened for Borrower’s account or by Bank’s interpretations of any Letter of Credit issued by Bank for Borrower’s account, and Borrower understands and agrees that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments, or supplements thereto. If any outstanding Letter of Credit expires after the Revolving Line Maturity Date (or effective termination of this Agreement), then on the 91st day prior to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Unless Revolving Line Maturity Date the Borrower shall have deposited with Bank provide to bank cash collateral in an amount sufficient equal to cover at least one hundred five percent (105%) for all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity DateCredit, thenplus all interest, effective as of such datefees, the balance in any deposit accounts held and costs due or estimated by Bank and the certificates of deposit issued by Bank to become due in Borrower’s name (and any interest paid thereon or proceeds thereofconnection therewith, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically to secure such obligations to the extent all of the then outstanding and undrawn Obligations relating to such Letters of Credit. Borrower authorizes may request that Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters issue a Letter of Credit are outstandingpayable in a Foreign Currency. If a demand for payment is made under any such Letter of Credit, Bank shall treat such demand as an Advance to Borrower of the Dollar Equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges).
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under terms and conditions of this Agreement, during the Committed Revolving Lineperiod from the date hereof to the Termination Date, and in reliance on the representations and warranties of Borrower set forth herein, at any time and Lender may from time to time from cause the date hereof through issuance, upon any Borrower’s request, of letters of credit (each a “Letter of Credit” or collectively, the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such “Letters of Credit as Borrower may request by delivering Credit”) up to Bank a duly executed letter an aggregate face amount outstanding at any time of credit application on Bank’s standard form$1,500,000.00; provided, however, provided that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank the Lender in its sole discretion discretion, (ii) Borrowers shall have executed and shall be subject delivered to the terms and conditions Lender the Lender’s standard form Letter of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Credit Agreement with respect to said Letters of Credit. Unless Borrower , (iii) at no time shall have deposited with Bank cash collateral in an amount sufficient to cover the aggregate sum of Advances under Section 3.1 hereof plus all undrawn amounts under each such Letter of Credit Liabilities exceed the lesser of the Maximum Advance Amount or the Borrowing Base, and Bank shall have agreed in writing, (iv) no Letter of Credit shall have an expiry date later than three hundred sixty-five (365) days from the date of issuance (provided, however, that a Letter of Credit may provide for automatic extensions of its expiration date that is later than for one or more 365-day periods, so long as the Revolving Maturity Date. If Borrower Lender has not secured the right to Bank’s satisfaction its obligations with respect to any Letters terminate the Letter of Credit by at the Revolving Maturity end of each 365-day period). Notwithstanding the foregoing, in the event any Letter of Credit is outstanding five (5) days prior to the Termination Date, thenBorrowers shall, effective as on or before five (5) days prior to such Termination Date, deposit in an account with Lender, in the name and for the benefit of such date, Lender (the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates“LC Collateral Account”), shall automatically secure such obligations an amount in cash equal to the extent 105% of the maximum amount available to be drawn on all then outstanding and undrawn Letters of Credit. Borrower authorizes Bank Such deposit shall be held by Lender as collateral for the payment and performance of all amounts owing by one or more Borrowers to hold Lender. The Lender shall have exclusive dominion and control, including the exclusive right of withdrawal, over such balances account and the Borrowers hereby grant the Lender a security interest in pledge the LC Collateral Account. The amount in such account may, at the Lender’s option and in its sole discretion, be applied by the Lender to decline to honor amounts owing by reason of any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part draw on a Letter of such balances for so long as the Letters of Credit are outstandingCredit.
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such standby letters of credit ("Letters of Credit Credit") as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s 's standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Unless Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any All Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance shall be in any deposit accounts held by Bank form and the certificates of deposit issued by substance acceptable to Bank in Borrower’s name (its sole discretion and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations be subject to the extent terms and conditions of the then outstanding Bank's form application and undrawn letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding.
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under terms and conditions of this Agreement, during the Committed Revolving Lineperiod from the date hereof to the Termination Date, and in reliance on the representations and warranties of Borrower set forth herein, at any time and Lender may from time to time from cause the date hereof through issuance, upon Borrower’s request, of letters of credit (each a “Letter of Credit” or collectively, the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such “Letters of Credit as Borrower may request by delivering Credit”) up to Bank a duly executed letter an aggregate face amount outstanding at any time of credit application on Bank’s standard form$1,500,000.00; provided, however, provided that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank the Lender in its sole discretion discretion, (ii) Borrower shall have executed and shall be subject delivered to the terms and conditions Lender the Lender’s standard form Letter of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Credit Agreement with respect to said Letters of Credit. Unless Borrower , (iii) at no time shall have deposited with Bank cash collateral in an amount sufficient to cover the aggregate sum of Advances under Section 3.1 hereof plus all undrawn amounts under each such Letter of Credit Liabilities exceed the Maximum Advance Amount, and Bank shall have agreed in writing, (iv) no Letter of Credit shall have an expiry date later than three hundred sixty-five (365) days from the date of issuance (provided, however, that a Letter of Credit may provide for automatic extensions of its expiration date that is later than for one or more 365-day periods, so long as the Revolving Maturity Date. If Borrower Lender has not secured the right to Bank’s satisfaction its obligations with respect to any Letters terminate the Letter of Credit by at the Revolving Maturity end of each 365-day period). Notwithstanding the foregoing, in the event any Letter of Credit is outstanding five (5) days prior to the Termination Date, thenBorrower shall, effective as on or before five (5) days prior to the Termination Date, deposit in an account with Lender, in the name and for the benefit of such date, Lender (the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates“LC Collateral Account”), shall automatically secure such obligations an amount in cash equal to the extent 105% of the maximum amount available to be drawn on all then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge Such deposit shall be held by Lender as collateral for the payment and to decline to honor any drafts thereon or any requests performance of all amounts owing by Borrower or to Lender. The Lender shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account and the Borrower hereby grants the Lender a security interest in the LC Collateral Account. The amount in such account may, at the Lender’s option and in its sole discretion, be applied by the Lender to amounts owing by reason of any other Person to pay or otherwise transfer any part draw on a Letter of such balances for so long as the Letters of Credit are outstandingCredit.
Appears in 1 contract
Letter of Credit Sublimit. (A) Subject to the availability under the Committed Revolving LineLine and the Borrowing Base, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line, and (iii) shall not at any time exceed the Borrowing Base. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower it will be charged charge for issuing and processing Letters of Credit. Unless Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all .
(B) If the outstanding and undrawn amounts under each all such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters of Credit by ever exceed the Revolving Maturity DateBorrowing Base, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificatescertificates or accounts), shall automatically secure such obligations to the extent of the then continuing or outstanding and undrawn Letters of Credit, provided however, if there are insufficient balances in such accounts to secure such obligations, Borrower shall immediately deposit such additional funds as necessary to secure such obligations to the satisfaction of Bank. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstandingoutstanding or continue.”
D. A new Section 2.1(b)(v) is hereby added to the Agreement to read as follows:
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability A sublimit under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue Line will be available for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s standard formCredit; provided, however, that (i) the sum of the aggregate undrawn and unexpired amount of outstanding and undrawn amounts under all such Letters of Credit (i) plus the aggregate amount of unreimbursed draws under Letters of Credit shall not at any time exceed the Letter of Credit SublimitSublimit with respect to all Letters of Credit, and (ii) no commercial Letter of Credit shall be deemed to constitute Advances for issued with a term exceeding ninety (90) days and (iii) no Letter of Credit shall be issued with an expiration date more than ninety (90) days beyond the purpose Revolving Maturity Date. The sum of calculating availability the undrawn amount of and unreimbursed draws under the Committed Revolving Line. Any drawn but unreimbursed amounts under any all Letters of Credit shall be charged as Advances against reserved under the Committed Revolving Line, and the availability shall be reduced by such amount. All Letters Each Letter of Credit shall will be issued in Bank’s sole discretion and in form and substance acceptable to Bank in its sole discretion Bank, and shall be subject to the additional terms and conditions of the agreements, applications, reimbursement agreements and other documents required by Bank in connection with each Letter of Credit issued under the Revolving Line (all of such applications and agreements hereinafter described as a “Letter of Credit Agreement” and each constituting a “Loan Document” hereunder). Each drawing paid under a Letter of Credit may in Bank’s form application discretion be deemed an Advance under the Revolving Line and shall be repaid by Borrower in accordance with the terms set forth herein. If (i) Bank does not elect to deem such a drawing to be an Advance under the Revolving Line or (ii) Advances are not available under the Revolving Line at the time such drawing is paid, whether due to a failed condition precedent, the existence of any Event of Default, the termination of the Revolving Line or otherwise, then Borrower shall immediately pay to Bank the full amount drawn, together with interest on such amount until repaid, at the highest rate of interest applicable to the Obligations hereunder. This Agreement does not constitute a pre-advice for the issuance of a letter of credit agreementand is not irrevocable. Borrower will shall pay Bank’s standard fees upon the issuance, payment, negotiation, transfer, amendment or cancellation of any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters Letter of Credit. Unless Borrower , together with such other fees, commissions, costs and expenses therefor as shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to be required by Bank’s satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding.
Appears in 1 contract
Samples: Loan and Security Agreement (CNL Strategic Capital, LLC)
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s 's standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s 's form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Unless Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If With respect to Letters of Credit having expiry dates after the Revolving Maturity Date, if Borrower has not secured to Bank’s 's satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s 's name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding.
Appears in 1 contract
Samples: Loan and Security Agreement (Citadel Security Software Inc)
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower Borrowers set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower Borrowers such Letters of Credit as Borrower Borrowers may request by delivering to Bank a duly executed letter of credit application on Bank’s standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower Borrowers will pay to Bank a Letter of Credit fee equal to one and three quarters of one percent (1.75%) per annum of the face amount of each Letter of Credit outstanding under the Letter of Credit Sublimit, payable annually in advance (the “Letter of Credit Fee”), and will pay any other standard issuance and other fees that Bank notifies Borrower Borrowers it will be charged charge for issuing and processing Letters of Credit; provided that the Letter of Credit Fee for any Letters of Credit issued by Bank that are cash-secured on terms satisfactory to Bank shall be one percent (1.00%). Unless Borrower If, on the Revolving Maturity Date, there are any outstanding Letters of Credit, then on such date Borrowers shall have deposited with provide to Bank cash collateral in an amount sufficient equal to cover 105% of the face amount of all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Dateplus all interest, thenfees, effective and costs due or to become due in connection therewith (as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued estimated by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificatesits good faith business judgment), shall automatically to secure such obligations to the extent all of the then outstanding and undrawn Obligations relating to said Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding.
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such Letters of Credit as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s 's standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s 's form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Unless Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has not secured to Bank’s 's satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s 's name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding. The Standby Letter of Credit is not subject to the Letter of Credit Sublimit and is not a "Letter of Credit" for purposes of this Section 2.1(b)(iii).
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower Borrowers set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower Borrowers such Letters of Credit as Borrower Borrowers may request by delivering to Bank a duly executed letter of credit application on Bank’s 's standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed the Letter of Credit Sublimit, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s 's form application and letter of credit agreement. Borrower Borrowers will pay any standard issuance and other fees that Bank notifies Borrower Borrowers will be charged for issuing and processing Letters of Credit. Unless Borrower Borrowers shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If Borrower has Borrowers have not secured to Bank’s 's satisfaction its obligations with respect to any Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in either Borrower’s 's name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then outstanding and undrawn Letters of Credit. Borrower authorizes Borrowers authorize Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower Borrowers or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit are outstanding.
Appears in 1 contract
Letter of Credit Sublimit. Subject to the availability under the Committed Revolving Line, and in reliance on the representations and warranties of Borrower set forth herein, at any time and from time to time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall issue for the account of Borrower such standby letters of credit ("Letters of Credit Credit") as Borrower may request by delivering to Bank a duly executed letter of credit application on Bank’s 's standard form; provided, however, that the outstanding and undrawn amounts under all such Letters of Credit (i) shall not at any time exceed One Million Dollars ($1,000,000) in the Letter of Credit Sublimitaggregate, and (ii) shall be deemed to constitute Advances for the purpose of calculating availability under the Committed Revolving Line. Any drawn but unreimbursed amounts under any Letters of Credit shall be charged as Advances against the Committed Revolving Line. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit. Unless Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Letter of Credit and Bank shall have agreed in writing, no Letter of Credit shall have an expiration date that is later than the Revolving Maturity Date. If In the event that the Committed Revolving Line is cancelled or not renewed, then Borrower has not secured agrees to Bank’s satisfaction its obligations deposit with respect Bank cash collateral in an amount to any Letters of Credit by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit accounts held by Bank and the certificates of deposit issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations to the extent of the then all outstanding and undrawn Letters of Credit. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the All Letters of Credit are outstandingshall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank's form application and letter of credit agreement. Borrower will pay any standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Letters of Credit.
Appears in 1 contract
