Common use of Standby Letters of Credit Clause in Contracts

Standby Letters of Credit. (a) Standby Letters of Credit -- General. Bank One agrees, subject to the terms and conditions of this Agreement, to issue upon the application of the Company and for the account of the Company standby letters of credit for the purpose of supporting payment of all or any part of the Acquisition Seller Debt or for any other general business purpose of the Company other than Credit Enhancement (each a "Letter of Credit"), provided that: (1) The aggregate Letter of Credit Exposure shall not at any time exceed the lesser of (A) Twenty-Five Million Dollars ($25,000,000) or (B) the Maximum Availability at such time minus the aggregate outstanding principal balance of all Revolving Loans at such time; (2) The Company shall not request and Bank One shall have no obligation to issue any Letter of Credit: (i) at any time any Event of Default or Unmatured Event Default shall have occurred and be continuing; (ii) at any time after the Revolving Loans Maturity Date; (iii) if, after giving effect to such issuance, the aggregate Letter of Credit Exposure would exceed the lesser of (A) Twenty-Five Million Dollars ($25,000,000) or (B) the Maximum Availability then outstanding minus the then aggregate outstanding principal balance of all Revolving Loans; (iv) if the face amount of such Letter of Credit would exceed the then outstanding Remaining Availability; or (v) for any purpose other than those permitted hereunder; (3) Bank One in no event shall be obligated to issue any Letter of Credit: (i) having an expiration date later than seven (7) years and thirty (30) days from the date of issuance; or (ii) if the issuance of such Letter of Credit on the terms requested would be contrary to, or in violation of the policies of Bank One or any requirement of applicable law; (4) The form of the requested Letter of Credit shall be satisfactory to Bank One in the reasonable exercise of Bank One's discretion; and (5) Bank One shall have received from the Company an application and reimbursement agreement for the Letter of Credit in form and substance satisfactory to Bank One in all respects (as the same may be amended, modified, extended, renewed, supplemented, replaced and/or restated from time to time and at any time, "Reimbursement Agreement"), duly executed by an Authorized Officer on behalf of the Company.

Standby Letters of Credit. (a) Standby Letters of Credit -- General. Bank One agrees, subject to the terms and conditions of this Agreement, to issue upon the application of the Company and for the account of the Company standby letters of credit for the purpose of supporting payment of all or any part of the Acquisition Seller Debt or for any other general business purpose of the Company other than Credit Enhancement (each a "Letter of Credit"), provided that: (1) The aggregate Letter of Credit Exposure shall not at any time exceed the lesser of (A) Twenty-Five Million Dollars ($25,000,000) or (B) the Maximum Availability at such time minus the aggregate outstanding principal balance of all Revolving Loans at such time; (2) The Company shall not request and Bank One shall have no obligation to issue any Letter of Credit: (i) at any time any Event of Default or Unmatured Event Default shall have occurred and be continuing; (ii) at any time after the Revolving Loans Maturity Date; (iii) if, after giving effect to such issuance, the aggregate Letter of Credit Exposure would exceed the lesser of (A) Twenty-Five Million Dollars ($25,000,000) or (B) the Maximum Availability then outstanding minus the then aggregate outstanding principal balance of all Revolving Loans; (iv) if the face amount of such Letter of Credit would exceed the then outstanding Remaining Availability; or (v) for any purpose other than those permitted hereunder; (3) Bank One in no event shall be obligated to issue any Letter of Credit: (i) having an expiration date later than seven (7) years and thirty (30) days from the date of issuance; or (ii) if the issuance of such Letter of Credit on the terms requested would be contrary to, or in violation of the policies of Bank One or any requirement of applicable law; (4) The form of the requested Letter of Credit shall be satisfactory to Bank One in the reasonable exercise of Bank One's discretion; and (5) Bank One shall have received from the Company an application and reimbursement agreement for the Letter of Credit in form and substance satisfactory to Bank One in all respects (as the same may be amended, modified, extended, renewed, supplemented, replaced and/or restated from time to time and at any time, "Reimbursement Agreement"), duly executed by an Authorized Officer on behalf of the Company. (b) Risk Participation. Each Bank (other than Bank One) hereby agrees that, immediately upon the issuance of each Letter of Credit and as of the Closing Date as to the Initial Letters of Credit, such Bank shall purchase, and shall be deemed to have irrevocably purchased from Bank One (without the necessity of the execution or delivery by Bank One or such Bank of any further or additional document evidencing such purchase) a risk participation in such Letter of Credit and the obligations of Bank One with respect to Drafts thereunder (including any Letter of Credit Loan), in an amount equal to such Bank's Commitment Percentage.

Standby Letters of Credit. (a) Amounts and Terms of Standby Letters of Credit -- GeneralCredit. Bank One agrees---------------------------------------------- During the period from the date of this Agreement to but excluding the L/C Commitment Termination Date, and subject to the terms and conditions of this Agreement, upon Company's request pursuant to Section 3.9.3, the Issuing Bank shall issue upon the application one or more standby ------------- letter(s) of the Company and for the account of the Company standby credit or commercial letters of credit for the purpose (including performance and financial letters of supporting payment of all or any part of the Acquisition Seller Debt or for any other general business purpose of the Company other than Credit Enhancement credit) (each each, a "Letter of Credit," and collectively, the "), provided that: (1Letters of Credit") The aggregate for the account of Company or the account of a Letter of Credit Exposure Subsidiary; provided that -------- the Issuing Bank shall not at any time exceed the lesser of (A) Twenty-Five Million Dollars ($25,000,000) or (B) the Maximum Availability at such time minus the aggregate outstanding principal balance of all Revolving Loans at such time; (2) The Company shall not request and Bank One shall have no obligation to issue any Letter of Credit: (i) at any time any Event of Default or Unmatured Event Default shall have occurred and be continuing; (ii) at any time after the Revolving Loans Maturity Date; (iii) if, after giving effect to such issuance, the aggregate Letter of Credit Exposure would exceed the lesser of (A) Twenty-Five Million Dollars ($25,000,000) or (B) the Maximum Availability then outstanding minus the then aggregate outstanding principal balance of all Revolving Loans; (iv) if the face amount of such Letter of Credit would exceed the then outstanding Remaining Availability; or (v) for any purpose other than those permitted hereunder; (3) Bank One in no event shall be obligated to issue any Letter of Credit: Credit if, after giving effect thereto, (i) having an expiration date later than seven (7) years and thirty (30) days from the date of issuance; L/C Obligations would exceed the L/C Commitment, or (ii) if the issuance total aggregate outstanding Loans plus ---- the L/C Obligations would exceed the Total Aggregate Commitment, or (iii) the Total Borrowing Base Home Building Indebtedness would exceed the Borrowing Base. All Letters of such Credit shall be on Issuing Bank's standard forms of letters of credit at the time of issuance. No Letter of Credit on shall have an expiration date (unless the terms requested would be contrary to, or Banks otherwise consent in violation of writing) later than the policies of Bank One or any requirement of applicable law;Maturity Date. (4b) The form [Intentionally Deleted.] (c) Letter of Credit Draws are Loans under this ------------------------------------------- Agreement. Company and each Bank agree that any draws under any Letter --------- of Credit shall constitute Loans under this Agreement for all purposes. Without limiting the requested foregoing, (i) all draws under any Letter of Credit shall bear interest and be repaid as Loans outstanding under this Agreement, and (ii) if, at the time any draw is made under any Letter of Credit, an Event of Default has occurred or the Maturity Date has passed or the Loans have been accelerated or are otherwise due and payable, such draw under such Letter of Credit shall be satisfactory to Bank One immediately due and payable in full. Promptly upon being notified by the reasonable exercise of Bank One's discretion; and Agent (5) Bank One shall have after Agent has received notice from the Company an application and reimbursement agreement Issuing Bank) that a draw has occurred under any Letter of Credit, each Bank shall reimburse the Agent, for the Letter of Credit in form and substance satisfactory to Bank One in all respects (as the same may be amended, modified, extended, renewed, supplemented, replaced and/or restated from time to time and at any time, "Reimbursement Agreement"), duly executed by an Authorized Officer on behalf benefit of the CompanyIssuing Bank, for that Bank's Pro Rata Share of such draw.

Standby Letters of Credit. (a) Standby Letters of Credit STANDBY LETTERS OF CREDIT -- GeneralGENERAL. At any time that the Company is entitled to an Advance under the Revolving Loan, the Bank One agrees, subject to the terms and conditions of this Agreement, to issue upon the application of the Company and for the account of the Company a standby letters letter of credit for the purpose of supporting payment of all or any part of the Acquisition Seller Debt or for any other general business purpose of the Company other than Credit Enhancement (each a "Letter of CreditLETTER OF CREDIT"), provided thatPROVIDED THAT: (1) The aggregate Letter of Credit Exposure shall not at any time exceed the lesser of (A) Twenty-Five Fifteen Million Dollars ($25,000,000) or (B) the Maximum Availability at such time minus the aggregate outstanding principal balance of all Revolving Loans at such time15,000,000); (2) The Company shall not request and the Bank One shall have no obligation to issue any Letter of Credit: (i) at any time any Event of Default or Unmatured Event Default shall have occurred and be continuing; (ii) at any time after the Revolving Loans Loan Maturity Date; (iii) if, after giving effect to such issuance, the aggregate Letter of Credit Exposure would exceed the lesser of (A) Twenty-Five Fifteen Million Dollars ($25,000,000) or (B) the Maximum Availability then outstanding minus the then aggregate outstanding principal balance of all Revolving Loans15,000,000); (iv) if the face amount of such Letter of Credit would exceed the then outstanding Remaining Availability; or (v) for any purpose other than those permitted hereunderto secure payment of all or any part of the Acquisition Seller Debt; (3) The Bank One in no event shall be obligated to issue any Letter of Credit: (i) having an expiration date later than seven (7) years and thirty (30) days from the date of issuance; or (ii) if the issuance of such Letter of Credit on the terms requested would be contrary to, or in violation of the policies of the Bank One or any requirement of applicable law; (4) The form of the requested Letter of Credit shall be satisfactory to the Bank One in the reasonable exercise of Bank Onethe Bank's discretion; and (5) The Bank One shall have received from the Company an application and reimbursement agreement for the Letter of Credit in form and substance satisfactory to the Bank One in all respects (as the same may be amended, modified, extended, renewed, supplemented, replaced and/or restated from time to time and at any time, "Reimbursement AgreementREIMBURSEMENT AGREEMENT"), duly executed by an Authorized Officer on behalf of the Companyofficer.

Standby Letters of Credit. (a) Standby Letters of Credit -- General. At any ------------------------------------ time that the Company is entitled to an Advance under the Revolving Loan, the Bank One agrees, subject to the terms and conditions of this Agreement, to issue upon the application of the Company and for the account of the Company a standby letters letter of credit for the purpose of supporting payment of all or any part of the Acquisition Seller Debt or for any other general business purpose of the Company other than Credit Enhancement (each a "Letter of Credit"), provided that:: ---------------- -------- ---- (1) The aggregate Letter of Credit Exposure shall not at any time exceed the lesser of (A) Twenty-Five Fifteen Million Dollars ($25,000,000) or (B) the Maximum Availability at such time minus the aggregate outstanding principal balance of all Revolving Loans at such time15,000,000); (2) The Company shall not request and the Bank One shall have no obligation to issue any Letter of Credit: (i) at any time any Event of Default or Unmatured Event Default shall have occurred and be continuing; (ii) at any time after the Revolving Loans Loan Maturity Date; (iii) if, after giving effect to such issuance, the aggregate Letter of Credit Exposure would exceed the lesser of (A) Twenty-Five Fifteen Million Dollars ($25,000,000) or (B) the Maximum Availability then outstanding minus the then aggregate outstanding principal balance of all Revolving Loans15,000,000); (iv) ), if the face amount of such Letter of Credit would exceed the then outstanding Remaining Availability; or (v) for any purpose other than those permitted hereunderto secure payment of all or any part of the Acquisition Seller Debt; (3) The Bank One in no event shall be obligated to issue any Letter of Credit: (i) having an expiration date later than seven (7) years and thirty (30) days from the date of issuance; or (ii) if the issuance of such Letter of Credit on the terms requested would be contrary to, or in violation of the policies of the Bank One or any requirement of applicable law; (4) The form of the requested Letter of Credit shall be satisfactory to the Bank One in the reasonable exercise of Bank Onethe Bank's discretion; and (5) The Bank One shall have received from the Company an application and reimbursement agreement for the Letter of Credit in form and substance satisfactory to the Bank One in all respects (as the same may be amended, modified, extended, renewed, supplemented, replaced and/or restated from time to time and at any time, "Reimbursement Agreement"), duly ----------------------- executed by an Authorized Officer on behalf of the Companyofficer.