Common use of Method of Issuing Letters of Credit Clause in Contracts

Method of Issuing Letters of Credit. Not less than three (3) Business Days prior to the requested date of issuance of any Letter of Credit, AMRESCO (for itself or on behalf of any Borrower) shall deliver to Agent a Request For Advance and shall execute and deliver to the Issuing Lender the customary letter of credit application and agreement used by the Issuing Lender from time to time (the "LOC Application"). Nothing in this Agreement shall prohibit the Issuing Lender from modifying the form of LOC Application in effect from time to time in connection with the issuance of any Letter of Credit, provided that, such modification does not substantially modify this Agreement to the detriment of Borrowers. In the event of a direct conflict between the provisions of the LOC Application and this Agreement, the provisions of this Agreement shall govern. In no event shall a Letter of Credit have an expiration date which is later than the Revolving Facility Termination Date. Letters of Credit may be standby letters of credit only and may be issued on behalf of any Borrower. Upon satisfaction of the applicable conditions precedent set forth in Article IV, and subject to the other terms and conditions of this Agreement, the Issuing Lender shall issue Letters of Credit for the account of any Borrower within three (3) Business Days from receipt by the Issuing Lender of the fully-executed LOC Application (so long as the requested terms of such Letter of Credit are acceptable to the Issuing Lender in its reasonable discretion). Borrower shall be entitled to have issued under the Revolving Credit Facility, subject to the terms of this Agreement, Letters of Credit denominated in an Alternate Currency or other currency as approved by Agent and the Issuing Lender, provided, that, if drawn, each Lender shall be required to fund its pro rata part of the Dollar Equivalent of such Advance. Each such Advance shall be subject to the terms and conditions of this Agreement related to Advances. The amount to be reserved under the Revolving Credit Facility related to any such Letter of Credit issued in an Alternate Currency or other currency approved by Agent and the Issuing Lender, and therefore the Letter of Credit Exposure related thereto, shall be an amount equal to 115% of the amount remaining to be funded under any said Letter of Credit from time to time (in Dollar Equivalent calculated from time to time). Immediately upon the issuance of each Letter of Credit, the Issuing Lender shall be deemed to have sold and transferred to each Revolving Lender, and each Revolving Lender shall be deemed to have purchased and received from the Issuing Lender, in each case irrevocably and without any further action by any party, an undivided interest and participation in such Letter of Credit, each drawing thereunder and the obligations of Borrowers under this Agreement in respect thereof in an amount equal to the product of (x) such Lender's Revolving Loan Percentage times (y) the maximum amount available to be drawn under such Letter of Credit (assuming compliance with all conditions to drawing). Subject to the limits referred to above, Borrowers may request the issuance of Letters The payment by the Issuing Lender of a draft drawn under any Letter of Credit shall constitute for all purposes of this Agreement the making by the Issuing Lender of an Advance under the Revolving Credit Facility, which shall bear interest at the Variable Rate, in the amount of such draft (but without any requirement for compliance with the conditions set forth in Article IV hereof). In the event that a drawing under any Letter of Credit is not reimbursed by Borrowers by 10:00 a.m. (Dallas time) on the first Business Day after such drawing, the Issuing Lender shall promptly notify Agent and each other Revolving Lender. Each such Revolving Lender shall, on the first Business Day following such notification, make an Advance, which shall bear interest at the Variable Rate, and shall be used to repay the applicable portion of the Issuing Lender's advance with respect to such Letter of Credit, in an amount equal to the amount of its participation in such drawing for application to reimburse the Issuing Lender (but without any requirement for compliance with the applicable conditions set forth in Article IV hereof) and shall make available to Agent for the account of the Issuing Lender, by deposit at Agent's office, in same day funds, the amount of such Advance. In the event that any Revolving Lender fails to make available to Agent for the account of the Issuing Lender the amount of such Advance, the Issuing Lender shall be entitled to recover such amount on demand from such Revolving Lender together with interest thereon at a rate per annum equal to the lesser of (i) the Maximum Lawful Rate or (ii) the Federal Funds Rate.

Method of Issuing Letters of Credit. Not less than three (3) Business Days prior to the requested date of issuance of any Letter of Credit, AMRESCO (for itself or on behalf of any Borrower) Borrower shall deliver to Administrative Agent a Request For Advance and shall execute and deliver to the Issuing Lender the customary letter of credit application and agreement used by the Issuing Lender from time to time in substantially the form of Exhibit D attached hereto (the "LOC Application"). Nothing in this Agreement shall prohibit the Issuing Lender from modifying the form of LOC Application in effect from time to time in connection with the issuance of any Letter of Credit, provided that, such modification does not substantially modify this Agreement to the detriment of BorrowersBorrower. In the event of a direct conflict between the provisions of the LOC Application and this Agreement, the provisions of this Agreement shall govern. In no event shall a Letter of Credit have an expiration date which is later than the Revolving Facility earlier of (i) one year from the date of issuance thereof or (ii) the Termination Date. Letters of Credit may be standby letters of credit only and may be issued on behalf of any Borrower. Upon satisfaction of the applicable conditions precedent set forth in Article IV, and subject to the other terms and conditions of this Agreement, the Issuing Lender shall issue Letters of Credit for the account of any Borrower within three (3) Business Days from receipt by the Issuing Lender of the fully-executed LOC Application (so long as the requested terms of such Letter of Credit are acceptable to the Issuing Lender in its reasonable discretion). Borrower shall be entitled to have issued under the Revolving Credit Facility, subject to the terms of this Agreement, Letters of Credit denominated in an Alternate Currency or other currency as approved by Agent and the Issuing Lender, provided, that, if drawn, each Lender shall be required to fund its pro rata part of the Dollar Equivalent of such Advance. Each such Advance shall be subject to the terms and conditions of this Agreement related to Advances. The amount to be reserved under the Revolving Credit Facility related to any such Letter of Credit issued in an Alternate Currency or other currency approved by Agent and the Issuing Lender, and therefore the Letter of Credit Exposure related thereto, shall be an amount equal to 115% of the amount remaining to be funded under any said Letter of Credit from time to time (in Dollar Equivalent calculated from time to time). Immediately upon the issuance of each Letter of Credit, the Issuing Lender shall be deemed to have sold and transferred to each Revolving Lender, and each Revolving Lender shall be deemed to have purchased and received from the Issuing Lender, in each case irrevocably and without any further action by any party, an undivided interest and participation in such Letter of Credit, each drawing thereunder and the obligations of Borrowers Borrower under this Agreement in respect thereof in an amount equal to the product of (x) such Lender's Revolving Loan Percentage times (y) the maximum amount available to be drawn under such Letter of Credit (assuming compliance with all conditions to drawing). Subject Within the limits of the Credit Facility, and subject to the limits referred to above, Borrowers Borrower may through an Authorized Borrowing Officer request the issuance of Letters of Credit under this Section 2.2(d), repay any Advances resulting from drawings thereunder pursuant to this Section 2.2(d) and request the issuance of additional Letters of Credit under this Section 2.2(d). The payment by the Issuing Lender of a draft drawn under any Letter of Credit shall constitute for all purposes of this Agreement the making by the Issuing Lender of an Advance under the Revolving Credit FacilityAdvance, which shall bear interest at the Variable RateRate in effect under the Credit Facility, in the amount of such draft (but without any requirement for compliance with the conditions set forth in Article IV hereof). In the event that a drawing under any Letter of Credit is not reimbursed by Borrowers Borrower by 10:00 a.m. (Dallas time) on the first Business Day after such drawing, the Issuing Lender shall promptly notify Administrative Agent and each other Revolving Lender. Each such Revolving Lender shall, on the first Business Day following such notification, make an Advance, which shall bear interest at the Variable RateRate in effect under the Credit Facility, and shall be used to repay the applicable portion of the Issuing Lender's advance with respect to such Letter of Credit, in an amount equal to the amount of its participation in such drawing for application to reimburse the Issuing Lender (but without any requirement for compliance with the applicable conditions set forth in Article IV hereof) and shall make available to Administrative Agent for the account of the Issuing Lender, by deposit at Administrative Agent's office, in same day funds, the amount of such Advance. In the event that any Revolving Lender fails to make available to Administrative Agent for the account of the Issuing Lender the amount of such Advance, the Issuing Lender shall be entitled to recover such amount on demand from such Revolving Lender together with interest thereon at a rate per annum equal to the lesser of (i) the Maximum Lawful Rate or (ii) the Federal Funds Rate.

Method of Issuing Letters of Credit. Not less than three (3) Business Days prior to the requested date of issuance of any Letter of Credit, AMRESCO (for itself or on behalf of any Borrower) shall deliver to Agent a Request For Advance and shall execute and deliver to the Issuing Lender the customary letter of credit application and agreement used by the Issuing Lender from time to time (the "LOC Application"). Nothing in this Agreement shall prohibit the Issuing Lender from modifying the form of LOC Application in effect from time to time in connection with the issuance of any Letter of Credit, provided that, such modification does not substantially modify this Agreement to the detriment of Borrowers. In the event of a direct conflict between the provisions of the LOC Application and this Agreement, the provisions of this Agreement shall govern. In no event shall a Letter of Credit have an expiration date which is later than the Revolving Facility Termination DateDate of the Corporate Facility. Letters of Credit may be standby letters of credit only and may be issued on behalf of any Borrower. Upon satisfaction of the applicable conditions precedent set forth in Article IV, and subject to the other terms and conditions of this Agreement, the Issuing Lender shall issue Letters of Credit for the account of any Borrower within three (3) Business Days from receipt by the Issuing Lender of the fully-executed LOC Application (so long as the requested terms of such Letter of Credit are acceptable to the Issuing Lender in its reasonable discretion). Borrower shall be entitled to have issued under the Revolving Credit Facility, subject to the terms of this Agreement, Letters of Credit denominated in an Alternate Currency or other currency as approved by Agent and the Issuing Lender, provided, that, if drawn, each Lender shall be required to fund its pro rata part of the Dollar Equivalent of such Advance. Each such Advance shall be subject to the terms and conditions of this Agreement related to Advances. The amount to be reserved under the Revolving Credit Facility related to any such Letter of Credit issued in an Alternate Currency or other currency approved by Agent and the Issuing Lender, and therefore the Letter of Credit Exposure related thereto, shall be an amount equal to 115% of the amount remaining to be funded under any said Letter of Credit from time to time (in Dollar Equivalent calculated from time to time). Immediately upon the issuance of each Letter of Credit, the Issuing Lender shall be deemed to have sold and transferred to each Revolving Lender, and each Revolving Lender shall be deemed to have purchased and received from the Issuing Lender, in each case irrevocably and without any further action by any party, an undivided interest and participation in such Letter of Credit, each drawing thereunder and the obligations of Borrowers under this Agreement in respect thereof in an amount equal to the product of (x) such Lender's Revolving Loan Percentage times (y) the maximum amount available to be drawn under such Letter of Credit (assuming compliance with all conditions to drawing). Subject Within the limits of the Corporate Facility, and subject to the limits referred to above, Borrowers may request the issuance of Letters of Credit under this Section 2.2(d), repay any Advances resulting from drawings thereunder pursuant to this Section 2.2(d) and request the issuance of additional Letters of Credit under this Section 2.2(d). The payment by the Issuing Lender of a draft drawn under any Letter of Credit shall constitute for all purposes of this Agreement the making by the Issuing Lender of an Advance under the Revolving Credit Facilitya Corporate Facility Advance, which shall bear interest at the Variable Rate, in the amount of such draft (but without any requirement for compliance with the conditions set forth in Article IV hereof). In the event that a drawing under any Letter of Credit is not reimbursed by Borrowers by 10:00 a.m. (Dallas time) on the first Business Day after such drawing, the Issuing Lender shall promptly notify Agent and each other Revolving Lender. Each such Revolving Lender shall, on the first Business Day following such notification, make an a Corporate Facility Advance, which shall bear interest at the Variable Rate, and shall be used to repay the applicable portion of the Issuing Lender's advance with respect to such Letter of Credit, in an amount equal to the amount of its participation in such drawing for application to reimburse the Issuing Lender (but without any requirement for compliance with the applicable conditions set forth in Article IV hereof) and shall make available to Agent for the account of the Issuing Lender, by deposit at Agent's office, in same day funds, the amount of such Advance. In the event that any Revolving Lender fails to make available to Agent for the account of the Issuing Lender the amount of such Advance, the Issuing Lender shall be entitled to recover such amount on demand from such Revolving Lender together with interest thereon at a rate per annum equal to the lesser of (i) the Maximum Lawful Rate or (ii) the Federal Funds Rate.

Method of Issuing Letters of Credit. Not less than three (3) Business Days prior to the requested date of issuance of any Letter of Credit, AMRESCO (for itself or on behalf of any each other Borrower) shall deliver to Agent a Request For Advance and shall execute and deliver to the Issuing Lender the customary letter of credit application and agreement used by the Issuing Lender from time to time (the "LOC Application"). Nothing in this Agreement shall prohibit the Issuing Lender from modifying the form of LOC Application in effect from time to time in connection with the issuance of any Letter of Credit, provided that, such modification does not substantially modify this Agreement to the detriment of BorrowersBorrower. In the event of a direct conflict between the provisions of the LOC Application and this Agreement, the provisions of this Agreement shall govern. In no event shall a Letter of Credit have an expiration date which is later than the Revolving Facility Termination Date. Letters of Credit may be standby letters of credit only and may be issued on behalf of either Borrower or any BorrowerGuarantor. Upon satisfaction of the applicable conditions precedent set forth in Article IV, and subject to the other terms and conditions of this Agreement, the Issuing Lender shall issue Letters of Credit for the account of any Borrower or any Guarantor within three (3) Business Days from receipt by the Issuing Lender of the fully-executed LOC Application (so long as the requested terms of such Letter of Credit are acceptable to the Issuing Lender in its reasonable discretion). Borrower shall be entitled to have issued under the Revolving Credit Facility, subject to the terms of this Agreement, Letters of Credit denominated in an Alternate Currency or other currency as approved by Agent and the Issuing Lender, provided, that, if drawn, each Lender shall be required to fund its pro rata part of the Dollar Equivalent of such Advance. Each such Advance shall be subject to the terms and conditions of this Agreement related to Advances. The amount to be reserved under the Revolving Credit Facility related to any such Letter of Credit issued in an Alternate Currency or other currency approved by Agent and the Issuing Lender, and therefore the Letter of Credit Exposure related thereto, shall be an amount equal to 115% of the amount remaining to be funded under any said Letter of Credit from time to time (in Dollar Equivalent calculated from time to time). Immediately upon the issuance of each Letter of Credit, the Issuing Lender shall be deemed to have sold and transferred to each Revolving Lender, and each Revolving Lender shall be deemed to have purchased and received from the Issuing Lender, in each case irrevocably and without any further action by any party, an undivided interest and participation in such Letter of Credit, each drawing thereunder and the obligations of Borrowers Borrower under this Agreement in respect thereof in an amount equal to the product of (x) such Lender's Revolving Loan Percentage times (y) the maximum amount available to be drawn under such Letter of Credit (assuming compliance with all conditions to drawing). Subject to the limits referred to above, Borrowers Borrower may request the issuance of Letters of Credit under this Section 2.2(e), repay any Advances under the Revolving Credit Facility resulting from drawings thereunder pursuant to this Section 2.2(e) and request the issuance of additional Letters of Credit under this Section 2.2(e). The payment by the Issuing Lender of a draft drawn under any Letter of Credit shall constitute for all purposes of this Agreement the making by the Issuing Lender of an Advance under the Revolving Credit Facility, which shall bear interest at the Variable Rate, in the amount of such draft (but without any requirement for compliance with the conditions set forth in Article IV hereof). In the event that a drawing under any Letter of Credit is not reimbursed by Borrowers Borrower by 10:00 a.m. (Dallas time) on the first Business Day after such drawing, the Issuing Lender shall promptly notify Agent and each other Revolving Lender. Each such Revolving Lender shall, on the first Business Day following such notification, make an Advance, which shall bear interest at the Variable Rate, and shall be used to repay the applicable portion of the Issuing Lender's advance with respect to such Letter of Credit, in an amount equal to the amount of its participation in such drawing for application to reimburse the Issuing Lender (but without any requirement for compliance with the applicable conditions set forth in Article IV hereof) and shall make available to Agent for the account of the Issuing Lender, by deposit at Agent's office, in same day funds, the amount of such Advance. In the event that any Revolving Lender fails to make available to Agent for the account of the Issuing Lender the amount of such Advance, the Issuing Lender shall be entitled to recover such amount on demand from such Revolving Lender together with interest thereon at a rate per annum equal to the lesser of (i) the Maximum Lawful Rate or (ii) the Federal Funds Rate.