Acceptance Facility Sample Clauses
An Acceptance Facility clause establishes a mechanism by which a party, typically a buyer or borrower, can formally accept goods, services, or financial instruments provided by another party. In practice, this clause outlines the procedures and requirements for acceptance, such as documentation, timelines, and any conditions that must be met before acceptance is confirmed. For example, it may specify that acceptance is deemed to occur upon delivery unless objections are raised within a certain period. The core function of this clause is to provide a clear and standardized process for acknowledging receipt and satisfaction with the deliverables, thereby reducing disputes and ensuring both parties are aligned on when obligations have been fulfilled.
Acceptance Facility. (a) Subject to the terms and conditions of this Agreement, the Administrative Agent agrees to cause the Letter of Credit Issuer to create bankers' acceptances for the account of one or more Borrowers by accepting time drafts drawn by beneficiaries under Letters of Credit in accordance with the terms thereof. The aggregate face amount of all Acceptances at any one time outstanding shall not exceed the LC/BA Subfacility; provided, however, that (i) the face amount of any Acceptance created pursuant to this Section 1.5(a) shall not exceed the LC/BA Availability Amount and (ii) the face amount of any Acceptance created pursuant to this Section 1.5(a), plus all commissions due from the Borrowers in connection with the creation thereof, shall not exceed Availability, in each case as determined at the time of such creation.
(b) Each draft (a "Draft") accepted by the Letter of Credit Issuer in accordance with Section 1.5(a) shall (a) be dated the date of acceptance of such Draft by the Letter of Credit Issuer, (c) mature on a Business Day not less than one (1) or more than six (6) months after the date such Draft is accepted by the Letter of Credit Issuer, and (c) have a face amount not less than the amount of the drawing under the Letter of Credit for which such Acceptance is so being created, payable in Dollars.
Acceptance Facility. Any Borrower may from time to time request the Bank to accept one or more drafts drawn on the Bank for the account of the Borrowers (each an "Acceptance"). At no time, however, shall the total principal balance of all Acceptances outstanding, together with the total face amount of all outstanding Letters of Credit less any partial draws paid by the Bank and the total principal balance of all Advances outstanding, exceed the Line of Credit.
Acceptance Facility. 22 SECTION 3.1. AVAILABILITY............................................. 22 SECTION 3.2.