Common use of Sharing of Setoffs and Collections Clause in Contracts

Sharing of Setoffs and Collections. Each Participating Bank agrees that to the extent any payment is received by it on any of a Letter of Credit Account Party’s obligations under a Letter of Credit, whether by counterclaim, setoff, banker’s lien, by realizing on collateral or otherwise and such payment results in such Participating Bank receiving a greater payment than it would have been entitled to under Section 4.05 hereof had the total amount of such payment been paid directly to Letter of Credit Issuing Bank for disbursement according to that Section, then such Participating Bank shall immediately purchase for cash from Letter of Credit Issuing Bank an additional Participation and a participation from the other Participating Banks in such Letter of Credit (subject to the same terms and conditions provided for herein), sufficient in amount so that such payment shall effectively be shared pro rata with HSBC and the other Participating Banks in accordance with the amount, and to the extent, of their respective interests in the Letter of Credit; provided however, that if all or any portion of such payment is thereafter recovered from such Participating Bank at any time, the purchase shall be rescinded and the purchase price returned to the extent of such recovery upon demand by such Participating Bank with interest at the Federal Funds Rate from and after the date of demand.

Sharing of Setoffs and Collections. Each Participating Bank agrees that to the extent any payment is received by it on any of a Letter of Credit Account Party’s 's obligations under a Letter of Credit, whether by counterclaim, setoff, banker’s 's lien, by realizing on collateral or otherwise and such payment results in such Participating Bank receiving a greater payment than it would have been entitled to under Section 4.05 hereof had the total amount of such payment been paid directly to Letter of Credit Issuing Bank for disbursement according to that Section, then such Participating Bank shall immediately purchase for cash from Letter of Credit Issuing Bank an additional Participation and a participation from the other Participating Banks in such Letter of Credit (subject to the same terms and conditions provided for herein), sufficient in amount so that such payment shall effectively be shared pro rata with HSBC and the other Participating Banks in accordance with the amount, and to the extent, of their respective interests in the Letter of Credit; provided however, that if all or any portion of such payment is thereafter recovered from such Participating Bank at any time, the purchase shall be rescinded and the purchase price returned to the extent of such recovery upon demand by such Participating Bank with interest at the Federal Funds Rate from and after the date of demand.

Sharing of Setoffs and Collections. Each Participating Bank agrees that to the extent any payment is received by it on any of a Letter of Credit Account Party’s the Borrower's obligations under a Letter of Credit, whether by counterclaim, setoff, banker’s 's lien, by realizing on collateral or otherwise and such payment results in such Participating Bank receiving a greater payment than it would have been entitled to under Section 4.05 hereof had the total amount of such payment been paid directly to Letter of Credit Issuing Bank Chase for disbursement according to that Section, then such Participating Bank shall immediately purchase for cash from Letter of Credit Issuing Bank Chase an additional Participation and a participation from the other Participating Banks in such Letter of Credit (subject to the same terms and conditions provided for herein), sufficient in amount so that such payment shall effectively be shared pro rata with HSBC Chase and the other Participating Banks in accordance with the amount, and to the extent, of their respective interests in the Letter of Credit; provided provided, however, that if all or any portion of such payment is thereafter recovered from such Participating Bank at any time, the purchase shall be rescinded and the purchase price returned to the extent of such recovery upon demand by such Participating Bank with interest at the Federal Funds Rate from and after the date of demand.

Sharing of Setoffs and Collections. Each Participating Bank agrees that to the extent any payment is received by it on any of a Letter of Credit Account Party’s Borrower's obligations under a Letter of Credit, whether by counterclaim, setoff, banker’s 's lien, by realizing on collateral or otherwise and such payment results in such Participating Bank receiving a greater payment than it would have been entitled to under Section 4.05 hereof had the total amount of such payment been paid directly to Letter of Credit Issuing Bank Chase for disbursement according to that Section, then such Participating Bank shall immediately purchase for cash from Letter of Credit Issuing Bank Chase an additional Participation and a participation from the other Participating Banks in such Letter of Credit (subject to the same terms and conditions provided for herein), sufficient in amount so that such payment shall effectively be shared pro rata with HSBC Chase and the other Participating Banks in accordance with the amount, and to the extent, of their respective interests in the Letter of Credit; provided however, that if all or any portion of such payment is thereafter recovered from such Participating Bank at any time, the purchase shall be rescinded and the purchase price returned to the extent of such recovery upon demand by such Participating Bank with interest at the Federal Funds Rate from and after the date of demand.

Sharing of Setoffs and Collections. Each Participating Bank agrees that to the extent any payment is received by it on any obligations of a any Letter of Credit Account Party’s obligations Party under a Letter of Credit, whether by counterclaim, setoff, banker’s 's lien, by realizing on collateral or otherwise and such payment results in such Participating Bank receiving a greater payment than it would have been entitled to under Section 4.05 hereof 5.05 had the total amount of such payment been paid directly to Letter of Credit Issuing Bank Chase for disbursement according to that Section, then such Participating Bank shall immediately purchase for cash from Letter of Credit Issuing Bank Chase an additional Participation and a participation from the other Participating Banks in such Letter of Credit (subject to the same terms and conditions provided for herein), sufficient in amount so that such payment shall effectively be shared pro rata with HSBC Chase and the other Participating Banks in accordance with the amount, and to the extent, of their respective interests in the Letter of Credit; provided provided, however, that if all or any portion of such payment is thereafter recovered from such Participating Bank at any time, the purchase shall be rescinded and the purchase price returned to the extent of such recovery upon demand by such Participating Bank with recovery, but without interest at the Federal Funds Rate from and after the date of demandor other return thereof.

Sharing of Setoffs and Collections. Each Participating Bank Lender agrees that to the extent any payment is received by it on any of a Letter of Credit Account Party’s the Borrower's obligations under a Letter of Credit, whether by counterclaim, setoff, banker’s 's lien, by realizing on collateral or otherwise and such payment results in such Participating Bank Lender receiving a greater payment than it would have been entitled to under Section 4.05 hereof had the total amount of such payment been paid directly to Letter of Credit the Issuing Bank for disbursement according to that Section, then such Participating Bank Lender shall immediately purchase for cash from Letter of Credit the Issuing Bank an additional Participation and a participation from the other Participating Banks Lenders in such Letter of Credit (subject to the same terms and conditions provided for herein), sufficient in amount so that such payment shall effectively be shared pro rata with HSBC the Issuing Bank and the other Participating Banks Lenders in accordance with the amount, and to the extent, of their respective interests in the Letter of Credit; provided provided, however, that if all or any portion of such payment is thereafter recovered from such Participating Bank Lender at any time, the purchase shall be rescinded and the purchase price returned to the extent of such recovery upon demand by such Participating Bank with recovery, but without interest at the Federal Funds Rate from and after the date of demandor other return thereon.

Sharing of Setoffs and Collections. Each Participating Bank agrees that to the extent any payment is received by it on any of a Letter of Credit Account Party’s the Borrower's obligations under a Letter of Credit, whether by counterclaim, setoff, banker’s 's lien, by realizing on collateral or otherwise and such payment results in such Participating Bank receiving a greater payment than it would have been entitled to under Section 4.05 hereof 5.05 had the total amount of such payment been paid directly to Letter of Credit Issuing Bank Chase for disbursement according to that Section, then such Participating Bank shall immediately purchase for cash from Letter of Credit Issuing Bank Chase an additional Participation and a participation from the other Participating Banks in such Letter of Credit (subject to the same terms and conditions provided for herein), sufficient in amount so that such payment shall effectively be shared pro rata with HSBC Chase and the other Participating Banks in accordance with the amount, and to the extent, of their respective interests in the Letter of Credit; provided provided, however, that if all or any portion of such payment is thereafter recovered from such Participating Bank at any time, the purchase shall be rescinded and the purchase price returned to the extent of such recovery upon demand by such Participating Bank with recovery, but without interest at the Federal Funds Rate from and after the date of demandor other return thereof.