Common use of Bankers' Acceptance Facility Clause in Contracts

Bankers' Acceptance Facility. Subject to the terms and conditions set forth in this Credit Agreement and the execution by the Borrowers of an Acceptance Agreement in the Acceptance Bank's customary form (the "Acceptance Agreement"), upon the written request of the Borrowers, the Acceptance Bank, on behalf of the Lenders, and in reliance upon the agreement of the Lenders set forth in ss.4.2(b) hereof and upon the representations and warranties of the Borrowers contained herein, agrees, in its individual capacity, to discount Eligible Drafts for the account of the Borrowers (all such accepted and discounted Eligible Drafts whether heretofore or hereafter issued being referred to individually as a "Bankers' Acceptance" and collectively as the "Bankers' Acceptances"); provided, however, that (i) any Bankers' Acceptance issued shall provide for a maturity date not longer than one hundred and twenty (120) days; (ii) in no event shall such maturity extend beyond the Maturity Date; (iii) after giving effect to such request, the sum of (A) the Maximum Drawing Amount (B) the Acceptance Face Amount, (C) all Unpaid Reimbursement Obligations, and (D) the amount of any Loans outstanding shall not exceed the Total Commitment; and (iv) the Acceptance Bank shall not accept an Eligible Draft if the face amount of all outstanding drafts accepted by the Acceptance Bank which are of the type described in paragraph 7 of Section 13 of the Federal Reserve Act (12 U.S.C. ss.372), as amended from time to time, or any successor statute, would cause the Acceptance Bank to violate any limitation imposed upon it under said paragraph or would cause the Acceptance Bank to violate such limitation if all such drafts were sold by the Acceptance Bank in the secondary market. To expedite the acceptance and discounting of Eligible Drafts, the Borrowers shall provide to the Acceptance Bank fully executed drafts, which shall be blank as to dates and amounts. The Borrowers may request the Acceptance Bank to accept and discount an Eligible Draft by submitting to the Acceptance Bank at least one (1) Business Day prior to the proposed date of acceptance and discounting a bankers' acceptance application in the Acceptance Bank's customary form, completed to the satisfaction of the Acceptance Bank and accompanied by such documents as may be required by the Acceptance Bank to establish that the drafts to be accepted and discounted will (if accepted and endorsed by a member bank of the Federal Reserve System) be eligible for discount by such Federal Reserve Bank. The Acceptance Bank shall make available to the Borrowers at the time of acceptance of each Eligible Draft and upon the satisfaction of the conditions set forth in ss.11 (but only in the case of the first Loan or Credit Instrument to be made or issued hereunder) and ss.12 hereof, an amount equal to the discounted value of such Eligible Draft based on: (x) the stated maturity date of such Eligible Draft, (y) the face amount of such Eligible Draft, and (z) a rate (computed on the basis of a year of three hundred sixty (360) days for the actual days elapsed) equal to the sum of (a) the per annum average discount rate quoted to the Acceptance Bank on the day an Eligible Draft is presented for discount by the Acceptance Bank's bankers' acceptance traders for acceptances which are of the type described in paragraph 7 of section 13 of the Federal Reserve Act (12 U.S.C. ss.372), as amended from time to time, or any successor statute and which approximate the face amount and mature on the maturity date of such Eligible Draft plus (b) the Applicable Commission (the "Bankers Acceptance Fee").

Bankers' Acceptance Facility. (a) Subject to the terms and conditions set forth in this Credit Agreement and the execution by the Borrowers of an Acceptance Agreement in the Acceptance BankAdministrative Agent's customary form (the "Acceptance Agreement"), upon the written request of the Borrowers, the Acceptance BankAdministrative Agent, on behalf of the Lenders, and in reliance upon the agreement of the Lenders set forth in ss.4.2(b) hereof and upon the representations and warranties of the Borrowers contained herein, agrees, in its individual capacity, to discount Eligible Drafts for the account of the Borrowers (all such accepted and discounted Eligible Drafts whether heretofore or hereafter issued being referred to individually as a "Bankers' Acceptance" and collectively as the "Bankers' Acceptances"); provided, however, that (i) any Bankers' Acceptance issued shall provide for a maturity date not longer than one hundred and twenty (120) 120 days; (ii) in no event shall such maturity extend beyond the Maturity Date; (iii) after giving effect to such request, the sum of (A) the Maximum Drawing Amount (B) the Acceptance Face Amount, (C) all Unpaid Reimbursement Obligations, and (D) the amount of any Loans outstanding shall not exceed the lesser of the Borrowing Base and the Total Commitment; and (iv) the Acceptance Bank Administrative Agent shall not accept an Eligible Draft if the face amount of all outstanding drafts accepted by the Acceptance Bank Administrative Agent which are of the type described in paragraph 7 of Section 13 of the Federal Reserve Act (12 U.S.C. ss.372), as amended from time to time, or any successor statute, would cause the Acceptance Bank Administrative Agent to violate any limitation imposed upon it under said paragraph or would cause the Acceptance Bank Administrative Agent to violate such limitation if all such drafts were sold by the Acceptance Bank Administrative Agent in the secondary market. To expedite the acceptance and discounting of Eligible Drafts, the Borrowers shall provide to the Acceptance Bank Administrative Agent fully executed drafts, which shall be blank as to dates and amounts. The Borrowers may request the Acceptance Bank Administrative Agent to accept and discount an Eligible Draft by submitting to the Acceptance Bank Administrative Agent at least one (1) Business Day prior to the proposed date of acceptance and discounting a bankers' acceptance application in the Acceptance BankAdministrative Agent's customary form, completed to the satisfaction of the Acceptance Bank Administrative Agent and accompanied by such documents as may be required by the Acceptance Bank Administrative Agent to establish that the drafts to be accepted and discounted will (if accepted and endorsed by a member bank of the Federal Reserve System) be eligible for discount by such Federal Reserve Bank. The Acceptance Bank Administrative Agent shall make available to the Borrowers at the time of acceptance of each Eligible Draft and upon the satisfaction of the conditions set forth in ss.11 (but only in the case of the first Loan or Credit Instrument to be made or issued hereunder) and ss.12 hereof, an amount equal to the discounted value of such Eligible Draft based on: (x) the stated maturity date of such Eligible Draft, (y) the face amount of such Eligible Draft, and (z) a rate (computed on the basis of a year of three hundred sixty (360) days for the actual days elapsed) equal to the sum of (a) the per annum average discount rate quoted to the Acceptance Bank Administrative Agent on the day an Eligible Draft is presented for discount by the Acceptance BankAdministrative Agent's bankers' acceptance traders for acceptances which are of the type described in paragraph 7 of section 13 of the Federal Reserve Act (12 U.S.C. ss.372), as amended from time to time, or any successor statute and which approximate the face amount and mature on the maturity date of such Eligible Draft plus (b) the Applicable Commission (the "Bankers Acceptance Fee").

Bankers' Acceptance Facility. Subject to the terms and conditions set -------- ---------- -------- forth in this Credit Agreement and the execution by the Borrowers Borrower of an Acceptance Agreement in the Acceptance Bank's customary form form, completed to the satisfaction of the Bank with supporting documentation acceptable to the Bank (the "Acceptance Agreement"), upon the written request of the BorrowersBorrower at least three (3) Business Days prior to the requested date of issuance, the Acceptance Bank, on behalf of the Lenders, and in reliance upon the agreement of the Lenders set forth in ss.4.2(b) hereof and upon the representations and warranties of the Borrowers Borrower contained herein, agrees, in its individual capacity, agrees to discount Eligible Drafts issue Bankers' Acceptances for the account of the Borrowers (all Borrower in a minimum face amount of $500,000 in such accepted and discounted Eligible Drafts whether heretofore or hereafter issued being referred to individually as a "Bankers' Acceptance" and collectively form as the "Bankers' Acceptances")Borrower and the Bank may agree; provided, however, that (i) any Bankers' Acceptance issued shall provide for a -------- ------- maturity date not longer later than one hundred and twenty 90 days from the date of issuance (120) days; (ii) but in no event shall such maturity extend beyond the Maturity Date); (iii) and provided, further, -------- ------- that the aggregate Acceptance Face Amount shall at no time exceed $4,000,000; and provided, further, that, after giving effect to such request, the sum of (A) the Maximum Drawing Amount (B) the Acceptance Face Amount, (C) all Unpaid Reimbursement Obligations, and (D) the amount of any Loans outstanding Total Loan -------- ------- Outstandings unpaid shall not exceed the Total Commitmentlesser of the Loan Commitment or the Borrowing Base; and (iv) provided, further, that the Acceptance Bank shall not accept an Eligible Draft issue any -------- ------- Bankers' Acceptance if the face amount of all outstanding drafts accepted by the Acceptance Bank which are of the type described in paragraph 7 of Section 13 of the Federal Reserve Act (12 U.S.C. ss.372)(S)372, as amended from time to time, or any successor statute, would cause the Acceptance Bank to violate any limitation imposed upon it under said paragraph statute or would cause the Acceptance Bank to violate such limitation if all such drafts were sold by the Acceptance Bank in the secondary market. To expedite the acceptance and discounting of Eligible Drafts, the Borrowers shall provide to the Acceptance Bank fully executed drafts, which shall be blank as to dates and amounts. The Borrowers may request the Acceptance Bank to accept and discount an Eligible Draft by submitting to the Acceptance Bank at least one (1) Business Day prior to the proposed date of acceptance and discounting a bankers' acceptance application in the Acceptance Bank's customary form, completed to the satisfaction of the Acceptance Bank and accompanied by such documents as may be required by the Acceptance Bank to establish that the drafts to be accepted and discounted will (if accepted and endorsed by a member bank of the Federal Reserve System) be eligible for discount by such Federal Reserve Bank. The Acceptance Bank shall make available to the Borrowers at the time of acceptance of each Eligible Draft and upon Upon the satisfaction of the conditions set forth in ss.11 (but only in the case of the first Loan or Credit Instrument to be made or issued hereunder) S)9 and ss.12 (S)10 hereof, the Bank shall make available to the Borrower at the time of issuance of each Bankers' Acceptance an amount equal to the discounted value of such Eligible Draft based on: (x) the stated maturity date of such Eligible Draftamount requested, (y) the face plus an amount of such Eligible Draft, and (z) a rate (computed on the basis of a year of three hundred sixty (360) days for the actual days elapsed) equal to the sum of (a) the per annum average discount rate quoted to the Acceptance Bank on the day an Eligible Draft a request for a Bankers' Acceptance is presented for discount by the Acceptance Bank's bankers' acceptance traders for acceptances which are of the type described in paragraph 7 of section 13 of the Federal Reserve Act (12 U.S.C. ss.372)(S)372, as amended from time to time, or any successor statute statute, and which approximate the face amount and mature on the maturity date of such Eligible Draft requested plus ---- (b) the Applicable Commission one and three-quarters percent (1.75%) per annum (the "Bankers Bankers' Acceptance Fee").