Common use of Synthetic Letters of Credit Clause in Contracts

Synthetic Letters of Credit. From time to time on any Business Day occurring on or after the Closing Date but five Business Days prior to the Synthetic Facility Maturity Date, the relevant Synthetic Issuer agrees that it will, to the extent requested by either Borrower, (i) issue one or more standby letters of credit (relative to such Synthetic Issuer, its "Synthetic Letter of Credit") for the account of the Borrowers or any Subsidiary Guarantor in the Stated Amount requested by such Borrower on such day; or (ii) extend the Stated Expiry Date of an existing Synthetic Letter of Credit previously issued hereunder. No Synthetic Issuer shall be permitted or required to issue any Synthetic Letter of Credit if, after giving effect thereto, (i) the aggregate amount of all Synthetic Letter of Credit Outstandings would exceed the Synthetic Letter of Credit Commitment Amount or (ii) the aggregate amount of all Synthetic Letter of Credit Outstandings would exceed the Synthetic Account Balance. Each Synthetic Letter of Credit shall provide for the payment of sight drafts, other written demands for payment, or acceptances of usance drafts when presented for honor thereunder in accordance with the terms thereof and when accompanied by the documents described therein.

Synthetic Letters of Credit. From time to time on any Business Day occurring on or after the Closing Date but five Business Days prior to the Synthetic Facility Maturity Date, the relevant Synthetic Issuer agrees that it will, to the extent requested by either Borrower, (i) issue one or more standby letters of credit (relative to such Synthetic Issuer, its "“Synthetic Letter of Credit"”) for the account of the Borrowers or any Subsidiary Guarantor in the Stated Amount requested by such Borrower on such day; or (ii) extend the Stated Expiry Date of an existing Synthetic Letter of Credit previously issued hereunder. No Synthetic Issuer shall be permitted or required to issue any Synthetic Letter of Credit if, after giving effect thereto, (i) the aggregate amount of all Synthetic Letter of Credit Outstandings would exceed the Synthetic Letter of Credit Commitment Amount or (ii) the aggregate amount of all Synthetic Letter of Credit Outstandings would exceed the Synthetic Account Balance. Each Synthetic Letter of Credit shall provide for the payment of sight drafts, other written demands for payment, or acceptances of usance drafts when presented for honor thereunder in accordance with the terms thereof and when accompanied by the documents described therein.