Common use of Obligations for Letters of Credit Clause in Contracts

Obligations for Letters of Credit. (a) Immediately upon issuance of any Letter of Credit by the Issuing Bank, each Lender shall be deemed to be a participant through the Issuing Bank in the obligation of the Issuing Bank under such Letter of Credit. Upon the delivery by such Lender to the Issuing Bank of funds requested for a disbursement pursuant to Section 4.08(c) hereof, such Lender shall be deemed as having purchased a participating interest in the Company's reimbursement obligations with respect to such Letter of Credit in an amount equal to such funds delivered to the Issuing Bank. (b) Each Lender severally agrees with the Issuing Bank and the Company that it shall be unconditionally liable, without regard to the occurrence of any Event of Default, for its pro-rata share based upon the ratio of its Commitment to the total Commitments of all Lenders, to reimburse on demand, the Issuing Bank for the amount of each disbursement under a Letter of Credit; provided, however, notwithstanding anything to the contrary contained in this Section 4.08(b), if due to the gross negligence or willful misconduct of the Issuing Bank a Letter of Credit is improperly issued or improperly honored, the Lenders shall not be liable to reimburse the Issuing Bank for their pro rata share of any disbursement under such Letter of Credit. (c) The Issuing Bank shall promptly request from each Lender its ratable share of any disbursement under any Letter of Credit that the Company has not elected hereunder to treat as a Revolving Credit Loan pursuant to Section 4.07, which amount shall be made available by each Lender to the Issuing Bank at the Principal Office in immediately available funds no later than 2:00 p.m. Charlotte, North Carolina time on the date requested. If such amount due to the Issuing Bank is made available later than 2:00 p.m. Charlotte, North Carolina time on the date requested, then such Lender shall pay to the Issuing Bank such amount with interest thereon in respect of each day during the period commencing on the date such amount was requested until the date the Issuing Bank receives such amount at a rate per annum equal to the Federal Funds Rate (but not to exceed the Highest Lawful Rate).

Appears in 2 contracts

Samples: Credit Agreement (Houston Exploration Co), Credit Agreement (Houston Exploration Co)

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Obligations for Letters of Credit. (a) Immediately upon issuance of any Letter of Credit by the Issuing BankAgent, each Lender shall be deemed to be a participant through the Issuing Bank Agent in the obligation of the Issuing Bank Agent under such Letter of Credit. Upon the delivery by such Lender to the Issuing Bank Agent of funds requested for a disbursement pursuant to Section 4.08(c) hereof, such Lender shall be deemed as having purchased a participating interest in the Company's reimbursement obligations with respect to such Letter of Credit in an amount equal to such funds delivered to the Issuing BankAgent. (b) Each Lender severally agrees with the Issuing Bank Agent and the Company that it shall be unconditionally liable, without regard to the occurrence of any Event of Default, for its pro-rata share based upon the ratio of its Commitment to the total Commitments of all Lenders, to reimburse on demand, the Issuing Bank Agent for the amount of each disbursement under a Letter of Credit; provided, however, notwithstanding anything to the contrary contained in this Section 4.08(b), if due to the gross negligence or willful misconduct of the Issuing Bank Agent a Letter of Credit is improperly issued or improperly honored, the Lenders shall not be liable to reimburse the Issuing Bank Agent for their pro rata share of any disbursement under such Letter of Credit. (c) The Issuing Bank Agent shall promptly request from each Lender its ratable share of any disbursement under any Letter of Credit that the Company has not elected hereunder to treat as a Revolving Credit Loan pursuant to Section 4.07, which amount shall be made available by each Lender to the Issuing Bank Agent at the its Principal Office in immediately available funds no later than 2:00 p.m. Charlotte, North Carolina Houston time on the date requested. If such amount due to the Issuing Bank Agent is made available later than 2:00 p.m. Charlotte, North Carolina Houston time on the date requested, then such Lender shall pay to the Issuing Bank Agent such amount with interest thereon in respect of each day during the period commencing on the date such amount was requested until the date the Issuing Bank Agent receives such amount at a rate per annum equal to the Federal Funds Rate (but not to exceed the Highest Lawful Rate).

Appears in 1 contract

Samples: Credit Agreement (Houston Exploration Co)

Obligations for Letters of Credit. (a) Immediately upon issuance of any Letter of Credit by the Issuing Bank, each Lender shall be deemed to be a participant through the Issuing Bank in the obligation of the Issuing Bank under such Letter of Credit. Upon the delivery by such Lender to the Issuing Bank of funds requested for a disbursement pursuant to Section 4.08(c) hereof, such Lender shall be deemed as having purchased a participating interest in the Company's ’s reimbursement obligations with respect to such Letter of Credit in an amount equal to such funds delivered to the Issuing Bank. (b) Each Lender severally agrees with the Issuing Bank and the Company that it shall be unconditionally liable, without regard to the occurrence of any Event of Default, for its pro-rata share based upon the ratio of its Commitment to the total Commitments of all Lenders, to reimburse on demand, the Issuing Bank for the amount of each disbursement under a Letter of Credit; provided, however, notwithstanding anything to the contrary contained in this Section 4.08(b), if due to the gross negligence or willful misconduct of the Issuing Bank a Letter of Credit is improperly issued or improperly honored, the Lenders shall not be liable to reimburse the Issuing Bank for their pro rata share of any disbursement under such Letter of Credit. (c) The Issuing Bank shall promptly request from each Lender its ratable share of any disbursement under any Letter of Credit that the Company has not elected hereunder to treat as a Revolving Credit Loan pursuant to Section 4.07, which amount shall be made available by each Lender to the Issuing Bank at the Principal Office in immediately available funds no later than 2:00 p.m. Charlotte, North Carolina time on the date requested. If such amount due to the Issuing Bank is made available later than 2:00 p.m. Charlotte, North Carolina time on the date requested, then such Lender shall pay to the Issuing Bank such amount with interest thereon in respect of each day during the period commencing on the date such amount was requested until the date the Issuing Bank receives such amount at a rate per annum equal to the Federal Funds Rate (but not to exceed the Highest Lawful Rate).

Appears in 1 contract

Samples: Credit Agreement (Houston Exploration Co)

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Obligations for Letters of Credit. (a) Immediately Immediately, (i) upon issuance of any Letter of Credit by the Issuing BankAdministrative Agent and (ii) effective on the date of the Initial Funding with respect to Letters of Credit outstanding under the Prior Credit Agreement on the date of Initial Funding, each Lender shall be deemed to be a participant through the Issuing Bank Administrative Agent in the obligation of the Issuing Bank Administrative Agent under such Letter of Credit. Upon the delivery by such Lender to the Issuing Bank Administrative Agent of funds requested for a disbursement pursuant to Section 4.08(c) hereof), such Lender shall be deemed as having purchased a participating interest in the Company's reimbursement obligations with respect to such Letter of Credit in an amount equal to such funds delivered to the Issuing BankAdministrative Agent. (b) Each Lender severally agrees with the Issuing Bank Administrative Agent and the Company that it shall be unconditionally liableliable to the Administrative Agent, without regard to the occurrence of any Default or Event of Default, for its pro-rata share prorata share, based upon the ratio of its Commitment to the total Commitments Percentage, of all Lendersdisbursements under any Letter of Credit, and agrees to reimburse on demand, demand the Issuing Bank Administrative Agent for the amount of each disbursement under a Letter of Credit; provided, however, notwithstanding anything to the contrary contained in this Section 4.08(b), if due to the gross negligence or willful misconduct of the Issuing Bank a Letter of Credit is improperly issued or improperly honored, the Lenders shall not be liable to reimburse the Issuing Bank for their its pro rata share of any disbursement under each such Letter of Creditdisbursement. (c) The Issuing Bank Administrative Agent shall promptly request from each Lender its ratable share of any disbursement under any Letter of Credit that the Company has not elected hereunder to treat as a Revolving Credit Conventional Loan pursuant to Section 4.07, which amount shall be made available by each Lender to the Issuing Bank Administrative Agent at the Principal Office in immediately available funds no later than 2:00 p.m. Charlotte, North Carolina New York time on the date requested. If such amount due to the Issuing Bank Administrative Agent is made available later than 2:00 p.m. Charlotte, North Carolina New York time on the date requested, then such Lender shall pay to the Issuing Bank Administrative Agent such amount with interest thereon in respect of each day during the period commencing on the date such amount was requested until the date the Issuing Bank Administrative Agent receives such amount at a rate per annum equal to the Federal Funds Base Rate (but not to exceed the Highest Lawful Rate).

Appears in 1 contract

Samples: Global Credit Agreement (United Meridian Corp)

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