Failure to Make Letter of Credit Advances Clause Samples
The "Failure to Make Letter of Credit Advances" clause defines the consequences and procedures that apply if a lender does not provide funds under a letter of credit as agreed. Typically, this clause outlines the steps a borrower can take if the lender fails to honor a draw request, such as seeking alternative financing or triggering default remedies. Its core function is to protect the borrower by ensuring there are clear remedies and recourse in the event the lender does not fulfill its obligations, thereby reducing uncertainty and risk in the transaction.
Failure to Make Letter of Credit Advances. The failure of any Lender to make the Letter of Credit Advance to be made by it on the date specified in Section 2.03(c) shall not relieve any other Lender of its obligation hereunder to make its Letter of Credit Advance on such date, but no Lender shall be responsible for the failure of any other Lender to make the Letter of Credit Advance to be made by such other Lender on such date.
Failure to Make Letter of Credit Advances. The failure of any Bank to make the Letter of Credit Advance to be made by it on the date specified in Section 2.03(c) shall not relieve any other Bank of its obligation hereunder to make its Letter of Credit Advance on such date, but no Bank shall be responsible for the failure of any other Bank to make the Letter of Credit Advance to be made by such other Bank on such date.
Failure to Make Letter of Credit Advances. The failure of any of the Revolving Credit Lenders to purchase its Pro Rata Share of any outstanding Letter of Credit Advance owing to the Issuing Bank for which a demand for the purchase thereof has been made pursuant to Section 2.03(c)(i) shall not relieve any of the other Revolving Credit Lenders of its obligation to purchase its Pro Rata Share of such outstanding Letter of Credit Advance on the date of demand therefor, but none of the Revolving Credit Lenders shall be responsible for the failure of any of the other Revolving Credit Lenders to purchase its Pro Rata Share of such outstanding Letter of Credit Advance on the date of demand therefor.
Failure to Make Letter of Credit Advances. The failure of any Tranche A Revolving Credit Lender to make the Letter of Credit Advance to be made by it on the date specified in Section 2.03(c) shall not relieve any other Tranche A Revolving Credit Lender of its obligation hereunder to make its Letter of Credit Advance on such date, but no Tranche A Revolving Credit Lender shall be responsible for the failure of any other Tranche A Revolving Credit Lender to make the Letter of Credit Advance to be made by such other Tranche A Revolving Credit Lender on such date.
Failure to Make Letter of Credit Advances. The failure of any Working Capital Lender to make the Letter of Credit Advance to be made by it on the date specified in Section 2.03(c) shall not relieve any other Working Capital Lender of its obligation hereunder to make its Letter of Credit Advance on such date, but no Working Capital Lender shall be responsible for the failure of any other Working Capital Lender to make the Letter of Credit Advance to be made by such other Working Capital Lender on such date.
Failure to Make Letter of Credit Advances. The failure of any AYE Lender to make the Letter of Credit Advance to be made by it on the date specified in Section 2.03(b) shall not relieve any other AYE Lender of its obligation hereunder to make its Letter of Credit Advance on such date, but no AYE Lender shall be responsible for the failure of any other AYE Lender to make the Letter of Credit Advance to be made by such other AYE Lender on such date. To the extent that any AYE Lender shall fail to make any Letter of Credit Advance to be made by it on the date specified in this Section 2.03, such AYE Lender shall pay interest to the AYE Issuing Bank (through the AYE Lender Agent) on such amount from such due date to the date such payment is made at a rate per annum equal to the Federal Funds Rate; provided that if such AYE Lender shall fail to make such payment to the AYE Issuing Bank within three Business Days of such due date, then, retroactively to the date when this Section 2.03 required such AYE Lender to make such payment, such AYE Lender pay to the AYE Lender Agent for the account of the AYE Issuing Bank interest on such amount at a rate per annum equal to the Federal Funds Rate plus 2.00%. If such AYE Lender shall pay to the AYE Lender Agent such amount for the account of the AYE Issuing Bank on any Business Day, such amount so paid in respect of principal shall constitute a Letter of Credit Advance made by such AYE Lender to the relevant Borrower on such Business Day for purposes of this Agreement, and the outstanding principal amount of the Letter of Credit Advance made by the AYE Issuing Bank to such Borrower shall be reduced by such amount on such Business Day.
Failure to Make Letter of Credit Advances. The failure of any Tranche B Lender to make the Letter of Credit Advance to be made by it on the date specified in Section 2.03(b) shall not relieve any other Tranche B Lender of its obligation hereunder to make its Letter of Credit Advance on such date, but no Tranche B Lender shall be responsible for the failure of any other Tranche B Lender to make the Letter of Credit Advance to be made by such other Tranche B Lender on such date.
Failure to Make Letter of Credit Advances. The failure of any Lender Party to make the Letter of Credit Advance to be made by it on the date specified in Section 2.16(c) shall not relieve any other Lender Party of its obligation hereunder to make its Letter of Credit Advance on such date, but no Lender Party shall be responsible for the failure of any other Lender Party to make the Letter of Credit Advance to be made by such other Lender Party on such date.
Failure to Make Letter of Credit Advances. The failure of any Refinancing Lender to make the Letter of Credit Advance to be made by it on the date specified in this Section 2.11 shall not relieve any other Refinancing Lender of its obligation hereunder to make its Letter of Credit Advance on such date, but no Refinancing Lender shall be responsible for the failure of any other Refinancing Lender to make the Letter of Credit Advance to be made by such other Refinancing Lender on such date. To the extent that any Refinancing Lender shall fail to make any Letter of Credit Advance to be made by it on the date specified in this Section 2.11, such Refinancing Lender shall pay interest to the Refinancing Issuing Bank (through the Refinancing Lender Agent) on such amount from such due date to the date such payment is made at a rate per annum equal to the Federal Funds Rate; provided that if such Refinancing Lender shall fail to make such payment to the Refinancing Issuing Bank within three Business Days of such due date, then, retroactively to the date when this Section 2.11 required such Refinancing Lender to make such payment, such Refinancing Lender pay to the Refinancing Lender Agent for the account of the Refinancing Issuing Bank interest on such amount at a rate per annum equal to the Federal Funds Rate plus 2.00%.