Demands under the Letter of Credit Sample Clauses
The 'Demands under the Letter of Credit' clause defines the procedures and requirements for making a claim or demand for payment under a letter of credit. Typically, this clause outlines the documentation that must be presented, the conditions that must be met, and the timeframe within which a demand can be made. For example, it may specify that the beneficiary must submit certain shipping documents or certificates to the issuing bank to receive payment. The core function of this clause is to ensure that both parties understand the exact process for drawing funds, thereby reducing the risk of disputes and ensuring timely and proper payment under the letter of credit arrangement.
Demands under the Letter of Credit. The Lessor will not make a demand under a Letter of Credit unless and until:
25.11.1 the Termination Sum has become due and payable (having regard to clause 27.4.1(a) for this purpose); and
25.11.2 the Termination Sum has not been paid in full on the due date for payment.
Demands under the Letter of Credit. If a demand is made under the Letter of Credit, as the case may be, or an Issuing Bank or Fronting Bank incurs in connection with the Letter of Credit any other liability, cost, claim, loss or expense which is to be reimbursed pursuant to this Agreement, the relevant Issuing Bank or Fronting Bank shall promptly notify the Facility Agent of the amount of such demand or such liability, cost, claim, loss or expense and the Facility Agent shall promptly make demand upon the Company in accordance with this Agreement and notify the Company.
Demands under the Letter of Credit. If, by 5:00 p.m. (Chicago time) on any Business Day, the Letter of Credit Agent shall have received an irrevocable Demand for Payment from the Liquidity Agent, the Letter of Credit Agent shall immediately notify each Letter of Credit Bank of such Demand for Payment. If a Demand for Payment under the Letter of Credit conforms to the terms and conditions of the Letter of Credit, each Letter of Credit Bank shall make payment of its Percentage Liability of such Demand for Payment, in immediately available funds in accordance with the terms of the Letter of Credit.