L C Subfacility Sample Clauses
The L/C Subfacility clause establishes a specific portion of a broader credit facility that is dedicated to issuing letters of credit. Under this clause, a borrower can request the lender to issue letters of credit up to a predetermined sublimit, which operates within the overall credit facility's maximum amount. For example, if a company has a $10 million credit facility, the L/C Subfacility might allow up to $2 million to be used specifically for letters of credit. This clause ensures that the availability and terms for letters of credit are clearly defined, helping both parties manage exposure and allocate credit resources efficiently.
L C Subfacility. Subject to Section 2.3.1, the Lender agrees to issue letters of credit, in each case containing such terms and conditions as are permitted by this Agreement and are reasonably satisfactory to the Lender (each, a “Letter of Credit”), at the request of the Borrower Representative and for the account of the Borrowers from time to time before the scheduled Termination Date; provided that (a) the aggregate Stated Amount of all Letters of Credit shall not at any time exceed $1,500,000, (b) Letters of Credit will be issued in Lender’s reasonable credit judgment in accordance with the terms and conditions hereof and of the other Loan Documents and (c) the Revolving Outstandings shall not at any time exceed Revolving Loan Availability.
L C Subfacility. (a) Subject to the terms and conditions of this Agreement and applicable Law, Agent agrees, in reliance upon the agreements of the other Lenders set out in this Section 2.3, to issue L/Cs denominated in U.S. Dollars under the Facility upon Borrower's delivery of an L/C Request and an L/C Agreement, each of which must be received by Agent no later than 1:00 p.m. on the third Business Day preceding the date on which the requested L/C is to be issued; provided that, Commitment Usage may not exceed the Total Commitment after giving effect to the issuance of such L/C. Each L/C (other than the Bond L/Cs) must expire no later than 13 months from its issuance; provided that any L/C (other than the Bond L/Cs) may, at Borrower's request, provide that it is self-extending upon its expiration date for successive periods of 6 to 12 months each (as selected by Borrower), unless Agent has given the beneficiary thereunder at least 30 days (but no more than 120 days) prior written notice to the contrary (provided, however, that such notice shall in no event be given by Agent unless (i) Agent is directed so to do by Borrower, (ii) a Default exists, or (iii) such extension would extend the expiration date beyond the Termination Date). Amounts drawn under the Bond L/Cs are subject to reinstatement upon the terms set forth therein. In no event may any L/C have an expiration date later than the Termination Date.
(b) Immediately upon Agent's issuance of any L/C, Agent shall be deemed to have sold and transferred to each Lender, and each Lender shall be deemed irrevocably and unconditionally to have purchased and received from Agent, without recourse or warranty, an undivided interest and participation (to the extent of such Lender's Pro Rata Part) in the L/C and all applicable Rights of Agent in the L/C (other than Rights to receive the fronting fees provided for in Section 4.3). Agent shall provide copies of L/Cs to Lenders upon request and shall distribute quarterly schedules of the outstanding L/Cs to each Lender.
(c) To induce Agent to issue and maintain L/Cs, and to induce Lenders to participate in issued L/Cs, Borrower agrees to pay or reimburse Agent (i) on or before the date when any draft, draw or other form of demand is presented under any L/C, the amount paid or to be paid by Agent (subject to a credit, in the case of a Bond L/C, for any portion of such reimbursement received by Agent directly from the relevant Trustee for the account of Borrower under the relevant In...
L C Subfacility. (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the other Lenders set forth in this
Section 2.01 (b), (1) from time to time on any Business Day during the period from the Closing Date until the L/C Expiration Date to issue Letters of Credit denominated in U.S. Dollars or in one or more Alternative Currencies for Borrower’s account, and to amend or renew Letters of Credit previously issued by it, in accordance with Section 2.03 below, and (2) to honor drafts under the Letters of Credit and (B) the Lenders severally agree to participate in Letters of Credit issued for Borrower’s account; provided that the L/C Issuer shall not be obligated to make any L/C Credit Extension with respect to any Letter of Credit, and no Lender shall be obligated to participate in any Letter of Credit, if as of the date of such L/C Credit Extension, (x) the Outstanding Amount of all L/C Obligations and all Loans would exceed the Aggregate Revolving Commitments, (y) the aggregate Outstanding Amount of the Revolving Loans of any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations, would exceed such Lender’s Revolving Commitment or (z) the Outstanding Amount of the L/C Obligations would exceed either the L/C Sublimit or the Available Credit. The L/C Issuer may, in its sole discretion, agree to issue a Letter of Credit that has automatic extension provisions; provided that any such Letter of Credit must permit L/C Issuer to prevent any such extension at least once in each twelve-month period by giving prior notice to the beneficiary thereof not later than a day in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued and also by giving such notice within 60 days of the L/C Expiration Date. Within the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to obtain Letters of Credit under the L/C Subfacility shall be fully revolving, and accordingly, until the L/C Expiration Date, the Borrower may obtain Letters of Credit under the L/C Sublimit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed;
(ii) The L/C Issuer shall be under no obligation to issue any Letter of Credit if:
A. any order, judgment or decree of any Governmental Authority or arbitrator enjoins or restrains the L/C Issuer from issuing such Letter of Credit;
B. any Law applicable to the L/C Issuer or a...
L C Subfacility