Acceptable Letters of Credit Sample Clauses
The Acceptable Letters of Credit clause defines the standards and requirements that a letter of credit must meet to be considered valid under the agreement. Typically, this clause outlines the issuing bank's qualifications, the form and content of the letter of credit, and any specific terms such as expiration dates or conditions for drawing funds. By specifying these criteria, the clause ensures that only reliable and enforceable letters of credit are used, thereby reducing the risk of payment disputes and providing assurance to the beneficiary that payment will be made if contractual obligations are met.
Acceptable Letters of Credit. (a) Subject to this Clause 26.15 and Clause 26.2 and provided that no Event of Default has occurred and is continuing and each Obligor is in compliance with all of its obligations under each Finance Document as at the date of such replacement of funds, both before and after giving effect to such replacement of funds, a Borrower at any time may elect to provide an Acceptable Letter of Credit in place of any funds that would otherwise be required to be deposited in its Debt Service Reserve Account.
(b) The amount of any Acceptable Letter of Credit that a Borrower may elect to provide in accordance with Clause 26.15(a) shall equal the amount of funds otherwise required to be deposited in its relevant Debt Service Reserve Account (with no imputed interest) at the time such Acceptable Letter of Credit is put in place.
(c) If a Borrower wishes to provide an Acceptable Letter of Credit in accordance with Clause 26.15(a) it shall give notice (an “Acceptable Letter of Credit Notice”) to the Intercreditor Agent.
(d) Each Acceptable Letter of Credit Notice shall include:
(i) the name of the entity that is to provide such Acceptable Letter of Credit;
(ii) the expiration date of such Acceptable Letter of Credit;
(iii) a confirmation by the relevant Borrower that such entity is an Acceptable Bank;
(iv) a draft of the proposed form of the Acceptable Letter of Credit and related exhibits and drawing certificates; and
(v) details of the amount of the Acceptable Letter of Credit proposed to be provided by the relevant Borrower in respect of its Debt Service Reserve Account.
(e) If the Intercreditor Agent has not given notice objecting to any Acceptable Letter of Credit proposed in an Acceptable Letter of Credit Notice within five Business Days of receipt of an Acceptable Letter of Credit Notice, then the relevant Borrower may put in place the Acceptable Letter of Credit in the form described in such Acceptable Letter of Credit Notice provided that such Borrower has delivered to the Intercreditor Agent and the Security Trustee all documents comprising such Acceptable Letter of Credit (in the form attached to the Acceptable Letter of Credit Notice). If the Intercreditor Agent gives notice that it does not consider the terms of any Acceptable Letter of Credit proposed in an Acceptable Letter of Credit Notice compliant with the definition of “Acceptable Letter of Credit” then the Borrower may not put in place such Acceptable Letter of Credit.
(f) Any funds standing to the credi...
Acceptable Letters of Credit. Any requirement of certain provisions of the Project Facilities Agreement relating to provision of acceptable letters of credit is not satisfied.
Acceptable Letters of Credit. Any requirement of Clause 19.30 is not satisfied.
Acceptable Letters of Credit. The ABL Administrative Agent shall have received one or more original Acceptable Letters of Credit in an amount of not less than $20,000,000 in the aggregate, in form and substance acceptable to the ABL Administrative Agent.
Acceptable Letters of Credit. Each Acceptable Letter of Credit delivered hereunder shall be additional security for the payment of the Loan and all of Borrower’s obligations under the Loan Documents. Upon the occurrence and during the continuance of a Default, Lender shall have the right, at its option, to draw on any Acceptable Letter of Credit (in accordance with the term thereof) and to apply all or any part thereof to the amounts outstanding under the Loan in any order and in any manner as Lender shall elect in its sole discretion. Lender shall have the additional rights to draw in full any Acceptable Letter of Credit (in accordance with the term thereof): (a) if Lender has received a notice from the issuing bank that the Acceptable Letter of Credit will not be renewed and a substitute Acceptable Letter of Credit is not provided at least thirty (30) days prior to the date on which the outstanding Acceptable Letter of Credit is scheduled to expire; or (b) upon receipt of notice from the issuing bank that the Acceptable Letter of Credit will be terminated (except if a substitute Acceptable Letter of Credit is provided by no later than thirty (30) days prior to such termination). If Lender draws upon an Acceptable Letter of Credit pursuant to the terms and conditions of this Agreement, provided no Default exists, Lender shall hold the proceeds in a blocked and pledged account as additional cash collateral for the Loan.
Acceptable Letters of Credit. (a) Each letter of credit delivered by Developer to District pursuant to this Agreement shall be in the form attached hereto as Exhibit J and otherwise in form and substance reasonably satisfactory to District, provided that such letter of credit shall be: (i) issued by a commercial bank with an office located in the Washington, D.C. metropolitan area; (ii) made payable to District; (iii) payable at sight upon presentment to a Washington, D.C. metropolitan area branch or office of the issuer (or such other branch or office of the issuer as may be reasonably acceptable to District) of a simple sight draft stating only that District is permitted to make such draw on the letter of credit under the terms of this Agreement and setting forth the amount that District is drawing; and (iv) of a term not less than one (1) year and shall on its face state that same shall be renewed automatically, without the need for any further notice or amendment, for successive minimum one-year periods, unless the issuer notifies District in writing, at least thirty
Acceptable Letters of Credit