LC Drawdown definition
LC Drawdown. The Borrower and each Lender hereby authorize each Fronting Lender to review on behalf of each Lender each draft and other document presented under each Fronted Letter of Credit. The determination of a Fronting Lender as to the conformity of any documents presented under a Fronted Letter of Credit to the requirements of such Fronted Letter of Credit shall, in the absence of such Fronting Lender's negligence or wilful misconduct, be conclusive and binding on the Borrower and each Lender. Each Fronting Lender shall, within a reasonable time following its receipt thereof, examine all documents purporting to represent a demand for payment under any Fronted Letter of Credit. Such Fronting Lender shall promptly after such examination:
(i) notify the Agent and the Borrower by telephone (confirmed in writing) of such demand for payment;
(ii) deliver to the Agent a copy of each document purporting to represent a demand for payment under such Fronted Letter of Credit; and
(iii) notify the Agent and the Borrower whether said demand for payment was properly made under such Fronted Letter of Credit.
Examples of LC Drawdown in a sentence
In the case of a proposed Drawdown by way of L/C Drawdown, the Agent shall also notify each Lender of the other relevant particulars of the Drawdown.
Upon the giving of such notice to such designated Lenders, any such Lender (including the Agent as Lender) may provide such a quotation to the Borrower not less than three Business Days prior to the date of the proposed L/C Drawdown.
In the case of a Drawdown (other than an L/C Drawdown), upon fulfilment of the applicable conditions precedent set forth in Article VI, the Agent will make such funds available to the Borrower at the Payment Office.