Drawings under the Letter of Credit Sample Clauses
The "Drawings under the Letter of Credit" clause defines the procedures and conditions under which a beneficiary can request payment or funds from a letter of credit issued by a bank. Typically, this clause outlines the required documents, such as invoices or shipping documents, that must be presented to the bank to trigger payment, and may specify deadlines or formats for these submissions. Its core practical function is to ensure that payments are only made when the beneficiary meets the agreed-upon documentary requirements, thereby protecting both the buyer and the seller in a transaction.
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Drawings under the Letter of Credit. The Issuing and Paying Agent is authorized to make Drawings under the Letter of Credit in accordance with its terms. If demand for payment under the Letter of Credit is properly presented as provided therein and in strict conformity with the requirements thereof, payment shall be made by the Bank, and the City hereby directs the Bank to make such payments, to the Issuing and Paying Agent, in immediately available funds, at such times as provided in and in accordance with the provisions of the Letter of Credit. All payments made by the Bank under the Letter of Credit shall be made with the Bank’s own funds.
Drawings under the Letter of Credit. The Company agrees to ----------------------------------- reimburse the Lender, in its individual capacity, and, without duplication, the Lender for the benefit of the Bank, without further notice or demand, for each Drawing made under the Letter of Credit on the date on which the Bank makes a payment under the Letter of Credit pursuant to such Drawing, by making payment of the required amount, or causing the Trustee to make payment of the required amount, directly to the Bank.
Drawings under the Letter of Credit. All Drawings to be made under the Letter of Credit shall be made by hand delivery, by tested telex or by telecopy, with an original to follow by mail, in the form of Annex A to the Letter of Credit addressed to the Bank and submitted by the Fiscal Agent at the time and place specified in the Letter of Credit, and no
Drawings under the Letter of Credit. (i) Marriott may only make drawings under the Letter of Credit in accordance with the terms thereof. Marriott shall send or cause to be sent to Sunrise quarterly statements in respect of drawings under the Letter of Credit, specifying the reason for each drawing.
(ii) If:
(A) during the period commencing on the date hereof and ending on December 31, 2013, either of the following conditions are satisfied:
(1) the L/C Issuer is rated less than “BBB+” by S&P or less than “Baa-1” by ▇▇▇▇▇’▇; or
(2) the L/C Issuer is rated less than “A-” by S&P and less than “A3” by ▇▇▇▇▇’▇; or
(B) after December 31, 2013, the L/C Issuer is rated less than “A-” by S&P or less than “A3” by ▇▇▇▇▇’▇, Marriott shall be entitled to make a drawing under the Letter of Credit in full. If Marriott intends to make a drawing under the Letter of Credit as a result thereof, Marriott shall give Sunrise written notice thereof (a “Ratings Notice”). Sunrise shall have fifteen (15) Business Days following the date of such Ratings Notice to provide Marriott with a replacement letter of credit on the same terms as the Letter of Credit issued by a financial institution with a credit rating not less than “A-” by S&P and “A3” by ▇▇▇▇▇’▇ (a “Replacement L/C”). Notwithstanding anything to the contrary set forth in the Letter of Credit, Marriott agrees that it shall not make a drawing as a result of any such rating reduction of the L/C Issuer unless such fifteen (15) Business Day period has lapsed and Sunrise has not provided the Replacement L/C within such period. Any Replacement L/C provided to Marriott hereunder shall be deemed to be the “Letter of Credit” for all purposes of this Agreement.
Drawings under the Letter of Credit. Upon receipt from the beneficiary of the Letter of Credit of any notice of a drawing under the Letter of Credit, the Issuing Lender shall determine in accordance with the terms of the Letter of Credit whether such drawing should be honored. If the Issuing Lender determines that any such drawing shall be honored, such Issuing Lender shall make available to such beneficiary in accordance with the terms of the Letter of Credit the amount of the drawing and shall notify the Borrower as to the amount to be paid as a result of such drawing and the payment date.
Drawings under the Letter of Credit. (a) Upon receipt from the Beneficiary of a demand for payment under the Letter of Credit, the Administrative Agent shall determine in accordance with the terms and conditions of the Letter of Credit whether such demand for payment should be honored.
(b) If the Administrative Agent determines that a demand for payment by the Beneficiary should be honored in accordance with the terms and conditions set forth in the Letter of Credit, the Administrative Agent shall promptly notify the Borrower and each Bank as to the aggregate amount to be paid as a result of such demand and shall promptly notify each Bank as to its share of such amount. Each Bank shall make available to the Beneficiary through the Administrative Agent its share of the amount so demanded in accordance with the terms of the Letter of Credit.