L/C Disbursements Sample Clauses
The "L/C Disbursements" clause governs the process by which funds are advanced or paid out under a letter of credit (L/C) arrangement. Typically, this clause outlines the conditions that must be met for disbursements to occur, such as the presentation of specific documents or compliance with certain terms. For example, it may specify that payment will be made upon receipt of shipping documents or proof of delivery. The core function of this clause is to ensure that disbursements are made in a controlled and predictable manner, thereby reducing the risk of non-performance or fraud for both parties involved in the transaction.
L/C Disbursements. The applicable Issuing Lender shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. Such Issuing Lender shall promptly give written notice to the Administrative Agent and the Borrower Representative of such demand for payment and whether such Issuing Lender has made or will make an L/C Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve Borrower of its Reimbursement Obligation to such Issuing Lender and the Lenders with respect to any such L/C Disbursement (other than with respect to the timing of such Reimbursement Obligation set forth in Subsection 3.5).