Common use of Acceptance Commitments Clause in Contracts

Acceptance Commitments. Subject to the terms and conditions hereof, each Bank severally, and not jointly, agrees to create acceptances (the "ACCEPTANCES"), in respect of Drafts drawn on such Bank by the Company and discounted by such Bank for the account of the Company from time to time during the Commitment Period; PROVIDED that concurrently therewith, the Company requests that such Bank discount such Draft pursuant to subsection 4.3; and PROVIDED, FURTHER such Bank shall have no obligation to create any acceptance if, after giving effect to such creation (and the use of the proceeds thereof): (i) the sum of (A) the Acceptance Reimbursement Obligations and (B) the Inventory L/C Obligations would exceed the Inventory L/C Commitment; (ii) the Available Working Capital Commitment of such Bank would be less than zero; or (iii) the Aggregate Outstanding Working Capital Extensions of Credit of such Bank would exceed such Bank's Commitment Percentage of the Borrowing Base. The Company may utilize the Working Capital Commitments in this manner by drawing Drafts on each of the Banks and presenting such Drafts for acceptance pursuant to subsection 4.3, paying its obligations with respect thereto pursuant to subsection 4.4, and again drawing Drafts on each of the Banks and presenting them for acceptance, all in accordance with the terms and conditions of this Section 4.

Acceptance Commitments. (a) Subject to the terms and conditions ---------------------- hereof, each Bank severally, and not jointly, Lender agrees to create acceptances (the "ACCEPTANCES"), in respect of Drafts drawn on such Bank by the Company and discounted by such Bank Acceptances for the account of the Company from time to time Borrower on any Business Day during the Commitment PeriodPeriod by accepting Drafts drawn by the Borrower; PROVIDED provided that concurrently therewith, the Company requests that such Bank discount such no Lender shall be obligated to accept any Draft pursuant to subsection 4.3; and PROVIDED, FURTHER such Bank shall have no obligation to create any acceptance if, -------- after giving effect to such creation (and the use of the proceeds thereof): acceptance, (i) the sum Available Commitment of such Lender would be less than zero or (ii) the Aggregate Outstandings of all Lenders would exceed the lesser of (A) the Acceptance Reimbursement Obligations Borrowing Base then in effect and (B) the Inventory L/C Obligations would exceed the Inventory L/C Commitment;aggregate Commitments of all Lenders. (iib) the Available Working Capital Commitment of such Bank would be less than zero; or (iii) the Aggregate Outstanding Working Capital Extensions of Credit of such Bank would exceed such Bank's Commitment Percentage of the Borrowing Base. The Company Borrower may utilize the Working Capital Commitments in the manner contemplated by this Section 3 by authorizing each Lender in the manner by drawing provided for in subsection 3.2(b) to draw Drafts on each of the Banks such Lender and presenting having such Drafts for acceptance accepted pursuant to subsection 4.33.2, paying its obligations with respect thereto pursuant to subsection 4.43.5, and again drawing authorizing Drafts to be drawn on each of the Banks Lenders and presenting having them presented for acceptance, all in accordance with the terms and conditions of this Section 43. (c) For the purposes of this Agreement, all Acceptances shall be considered a utilization of the Commitments in an amount equal to the undiscounted face amount of such Acceptance.