{"component": "clause", "props": {"groups": [{"snippet": "(a) Subject to the terms and conditions of this Agreement and applicable Law, Agent agrees to issue LCs under Facility A upon Borrower's delivery of an LC Request and a duly executed LC Agreement, each of which must be received by Agent no later than 10:00 a.m. on the third Business Day before the requested LC is to be issued; PROVIDED THAT the LC Exposure may not exceed $20,000,000 and the Facility A Commitment Usage may not exceed the Facility A Commitment. Each LC must expire no LATER than the EARLIER of 30 days before the Facility A Termination Date AND 13 months after such LC's issuance (PROVIDED THAT LCs may be self-extending with up to 120 days cancellation notice by Agent to beneficiary).\n(b) Immediately upon Agent's issuance of any LC (and as of the date of the initial Loan, with respect to existing LCs issued by NationsBank and included in the Existing Bank Debt), Agent shall be deemed to have sold and transferred to each other Lender, and each other 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 of the Facility A Commitment) in the LC and all applicable Rights of Agent in the LC (OTHER THAN Rights to receive certain fees provided for in SECTION 4.3). Agent agrees to provide a copy of each LC to each other Lender upon request. However, Agent's failure to send a copy of an issued LC shall not affect the rights and obligations of Agent and Lenders under this Agreement.\n(c) To induce Agent to issue and maintain LCs, and to induce Lenders to participate in issued LCs, Borrower agrees to pay or reimburse Agent (i) within one (1) Business Day after Borrower receives notice from Agent that any draft or draw request has been properly presented under any LC, or, if the draft or draw request is for payment at a future date, within one (1) Business Day before the payment date specified in the draw request, the amount paid or to be paid by Agent and (ii) promptly, upon demand, the amount of any additional fees Agent customarily charges for confirming, negotiating or amending LC Agreements, for honoring drafts and draw requests, and taking similar action in connection with letters of credit. Borrower hereby requests and irrevocably authorizes Agent to fund Borrower's reimbursement obligations as a Base Rate Loan under Facility A, and the proceeds of the Facility A Base Rate Loan shall be advanced directly to Agent to pay Borrower's unpaid reimbursement obligations. If funds cannot be advanced under Facility A, then Borrower's reimbursement obligation shall constitute a demand obligation. Borrower's reimbursement obligations shall accrue interest (x) at the Base Rate PLUS the Applicable Margin from the date Agent pays the applicable draft or draw request through the date Agent is paid or reimbursed by Borrower and, (y) if funds are not advanced under Facility A, at the Default Rate from the date Agent pays the applicable draft or draw request through the date Agent is paid or reimbursed by Borrower. Borrower's obligations under this SECTION 2.3(c) are absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that Borrower may have at any time against Agent or any other Person. Agent shall promptly distribute reimbursement payments received from Borrower to all Lenders according to their Pro Rata Part of the Facility A Commitment.\n(d) Agent shall promptly notify Borrower of the date and amount of any draft or draw request presented for honor under any LC (but failure to give notice will not affect Borrower's obligations under this Agreement). Agent shall pay the requested amount upon presentment of a draft or draw request unless presentment on its face does not comply with the terms of the applicable LC. When making payment, Agent may disregard (i) any default or potential default that exists under any other agreement and (ii) obligations under any other agreement that have or have not been performed by the beneficiary or any other Person (and Agent is not liable for any of those obligations). Borrower's reimbursement obligations to Agent and Lenders, and each Lender's obligations to Agent, under this SECTION 2.3 are absolute and unconditional irrespective of, (1) the validity, enforceability, sufficiency, accuracy or genuineness of documents or endorsements (even if they are in any respect invalid, unenforceable, insufficient, inaccurate, fraudulent or forged), (2) any dispute by any Company with or any Company's claims, setoffs, defenses, counterclaims or other Rights against Agent, any Lender or any other Person, or (3) the occurrence of any Potential Default or Default.\n(e) If Borrower fails to reimburse Agent as provided in SECTION 2.3(c) and funds are not advanced under Facility A to satisfy the reimbursement obligations, Agent shall promptly notify each Lender of Borrower's failure, of the date and amount paid, and of each Lender's Pro Rata Part of the unreimbursed amount. Each Lender shall promptly and unconditionally make available to Agent in immediately available funds its Pro Rata Part of the unpaid reimbursement obligation. Such funds are due and payable to Agent before the close of business on (i) the Business Day Agent gives notice to each Lender of Borrower's reimbursement failure if the notice is received by a Lender before 2:00 p.m. in the time zone where such Lender's Applicable Lending Office is located, or (ii) on the next succeeding Business Day after the Business Day Agent gives notice to each Lender of Borrower's reimbursement failure, if notice is received after 2:00 p.m. in the time zone where such Lender's Applicable Lending Office is located. All amounts payable by any Lender accrue interest at the Federal Funds Rate from the day the applicable draft or draw is paid by Agent to (but not including) the date the amount is paid by the Lender to Agent.\n(f) Borrower acknowledges that each LC is deemed issued upon delivery to the beneficiary or Borrower. If Borrower requests any LC be delivered to Borrower rather than the beneficiary, and Borrower subsequently cancels that LC, Borrower agrees to return it to Agent together with Borrower's written certification that it has never been delivered to the beneficiary. If any LC is delivered to the beneficiary under Borrower's instructions, Borrower's cancellation is ineffective without Agent's receipt of the LC and the beneficiary's written consent to the cancellation.\n(g) Agent will examine all documents with reasonable care to ascertain that they appear on their face to be in accordance with the terms and conditions of the LC. Each Lender and Borrower agree that, in paying any draft or draw under any LC, Agent has no responsibility to obtain any document (OTHER THAN any documents expressly required by the respective LC) or to ascertain or inquire as to any document's validity, enforceability, sufficiency, accuracy or genuineness or the authority of any Person delivering it. Neither Agent nor its Representatives will be liable to any Lender or any Company for any LC's use or for any beneficiary's acts or omissions. Any action, inaction, error, delay or omission taken or suffered by Agent or any of its Representatives in connection with any LC, applicable draws, drafts or documents, or the transmission, dispatch or delivery of any related message or advice, if in conformity with applicable Laws and in accordance with the standards of care specified in the Uniform Customs and Practice for Documentary Credits (International Chamber of Commerce Publication 500), is binding upon the Companies and Lenders. Agent is not liable to any Company or any Lender for any action taken or omitted by Agent or its Representative in connection with any LC in the absence of gross negligence or willful misconduct.\n(h) On the Facility A Termination Date, upon a termination under SECTION 2.4, during the continuance of a Default under SECTION 11.3, or upon any demand by Agent during the continuance of any other Default, Borrower shall provide to Agent, for the benefit of Lenders, cash collateral in an amount equal to the then-existing LC Exposure. Any cash collateral provided by Borrower to Agent in accordance with this SECTION 2.3(h) shall be deposited by Agent in an interest bearing cash collateral account maintained with Agent at the office of Agent and invested in obligations issued or guaranteed by the U.S. and, upon the surrender of any LC, Agent shall deliver the appropriate funds on deposit in such collateral account to Borrower together with interest accrued on such funds.\n(i) BORROWER SHALL PROTECT, INDEMNIFY, PAY, AND SAVE AGENT, EACH LENDER AND THEIR RESPECTIVE REPRESENTATIVES HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, LIABILITIES, DAMAGES, LOSSES, COSTS, CHARGES AND EXPENSES (INCLUDING REASONABLE ATTORNEYS' FEES) WHICH ANY OF THEM MAY INCUR OR BE SUBJECT TO AS A CONSEQUENCE OF THE ISSUANCE OF ANY LC, ANY DISPUTE ABOUT IT, ANY CANCELLATION OF ANY LC BY BORROWER, OR THE FAILURE OF AGENT TO HONOR A DRAFT OR DRAW REQUEST UNDER ANY LC AS A RESULT OF ANY ACT OR OMISSION (WHETHER RIGHT OR WRONG) OF ANY PRESENT OR FUTURE TRIBUNAL. HOWEVER, NO PERSON IS ENTITLED TO INDEMNITY UNDER THE FOREGOING FOR ITS OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.\n(j) Although referenced in any LC, terms of any particular agreement or other obligation to the beneficiary are not incorporated into this Agreement in any manner. The fees and other amounts payable with respect to each LC are as provided in this Agreement, drafts and draws under each LC are part of the Obligation, and the terms of this Agreement control any conflict between the terms of this Agreement and any LC Agreement.", "snippet_links": [{"key": "terms-and-conditions-of-this-agreement", "type": "clause", "offset": [19, 57]}, {"key": "to-issue", "type": "clause", "offset": [91, 99]}, {"key": "upon-borrower", "type": "definition", "offset": [121, 134]}, {"key": "delivery-of", "type": "clause", "offset": [137, 148]}, {"key": "lc-request", "type": "clause", "offset": [152, 162]}, {"key": "duly-executed", "type": "clause", "offset": [169, 182]}, {"key": "received-by", "type": "definition", "offset": [219, 230]}, {"key": "third-business-day", "type": "clause", "offset": [269, 287]}, {"key": "provided-that", "type": "clause", "offset": [329, 342]}, {"key": "commitment-usage", "type": "definition", "offset": [405, 421]}, {"key": "facility-a-termination-date", "type": "definition", "offset": [532, 559]}, {"key": "notice-by-agent", "type": "clause", "offset": [673, 688]}, {"key": "to-beneficiary", "type": "definition", "offset": [689, 703]}, {"key": "upon-agent", "type": "clause", "offset": [722, 732]}, {"key": "date-of", "type": "clause", "offset": [769, 776]}, {"key": "the-initial-loan", "type": "clause", "offset": [777, 793]}, {"key": "with-respect-to", "type": "clause", "offset": [795, 810]}, {"key": "existing-lcs", "type": "definition", "offset": [811, 823]}, {"key": "issued-by", "type": "definition", "offset": [824, 833]}, {"key": "existing-bank-debt", "type": "clause", "offset": [866, 884]}, {"key": "agent-shall", "type": "definition", "offset": [887, 898]}, {"key": "have-sold", "type": "definition", "offset": [912, 921]}, {"key": "other-lender", "type": "definition", "offset": [946, 958]}, {"key": "without-recourse", "type": "clause", "offset": [1073, 1089]}, {"key": "undivided-interest", "type": "definition", "offset": [1106, 1124]}, {"key": "to-the-extent", "type": "clause", "offset": [1144, 1157]}, {"key": "pro-rata-part", "type": "definition", "offset": [1175, 1188]}, {"key": "rights-of-agent", "type": "clause", "offset": [1248, 1263]}, {"key": "to-receive", "type": "definition", "offset": [1293, 1303]}, {"key": "certain-fees", "type": "clause", "offset": [1304, 1316]}, {"key": "section-43", "type": "clause", "offset": [1333, 1344]}, {"key": "a-copy-of", "type": "clause", "offset": [1371, 1380]}, {"key": "upon-request", "type": "definition", "offset": [1410, 1422]}, {"key": "agent-and-lenders", "type": "definition", "offset": [1527, 1544]}, {"key": "to-induce-agent", "type": "clause", "offset": [1571, 1586]}, {"key": "participate-in", "type": "definition", "offset": [1639, 1653]}, {"key": "pay-or-reimburse", "type": "clause", "offset": [1685, 1701]}, {"key": "for-payment", "type": "clause", "offset": [1891, 1902]}, {"key": "future-date", "type": "definition", "offset": [1908, 1919]}, {"key": "payment-date", "type": "clause", "offset": [1960, 1972]}, {"key": "amount-paid", "type": "clause", "offset": [2008, 2019]}, {"key": "upon-demand", "type": "clause", "offset": [2062, 2073]}, {"key": "additional-fees", "type": "definition", "offset": [2093, 2108]}, {"key": "charges-for", "type": "clause", "offset": [2127, 2138]}, {"key": "lc-agreements", "type": "clause", "offset": [2175, 2188]}, {"key": "draw-requests", "type": "clause", "offset": [2214, 2227]}, {"key": "in-connection-with", "type": "clause", "offset": [2255, 2273]}, {"key": "letters-of-credit", "type": "definition", "offset": [2274, 2291]}, {"key": "borrower-hereby", "type": "definition", "offset": [2293, 2308]}, {"key": "fund-borrower", "type": "definition", "offset": [2354, 2367]}, {"key": "base-rate-loan", "type": "definition", "offset": [2401, 2415]}, {"key": "loan-shall", "type": "definition", "offset": [2479, 2489]}, {"key": "unpaid-reimbursement-obligations", "type": "definition", "offset": [2538, 2570]}, {"key": "demand-obligation", "type": "clause", "offset": [2678, 2695]}, {"key": "obligations-shall", "type": "definition", "offset": [2722, 2739]}, {"key": "the-base-rate", "type": "definition", "offset": [2763, 2776]}, {"key": "applicable-margin", "type": "clause", "offset": [2786, 2803]}, {"key": "by-borrower", "type": "clause", "offset": [2911, 2922]}, {"key": "default-rate", "type": "definition", "offset": [2983, 2995]}, {"key": "section-23", "type": "clause", "offset": [3150, 3161]}, {"key": "absolute-and-unconditional", "type": "clause", "offset": [3169, 3195]}, {"key": "at-any-time", "type": "clause", "offset": [3318, 3329]}, {"key": "any-other-person", "type": "definition", "offset": [3347, 3363]}, {"key": "payments-received", "type": "clause", "offset": [3411, 3428]}, {"key": "from-borrower", "type": "clause", "offset": [3429, 3442]}, {"key": "all-lenders", "type": "definition", "offset": [3446, 3457]}, {"key": "according-to", "type": "definition", "offset": [3458, 3470]}, {"key": "promptly-notify", "type": "clause", "offset": [3537, 3552]}, {"key": "failure-to-give-notice", "type": "clause", "offset": [3652, 3674]}, {"key": "obligations-under-this-agreement", "type": "clause", "offset": [3702, 3734]}, {"key": "requested-amount", "type": "clause", "offset": [3757, 3773]}, {"key": "comply-with-the", "type": "clause", "offset": [3858, 3873]}, {"key": "terms-of-the", "type": "clause", "offset": [3874, 3886]}, {"key": "making-payment", "type": "clause", "offset": [3907, 3921]}, {"key": "potential-default", "type": "definition", "offset": [3962, 3979]}, {"key": "any-other-agreement", "type": "definition", "offset": [3998, 4017]}, {"key": "performed-by", "type": "clause", "offset": [4092, 4104]}, {"key": "the-beneficiary", "type": "clause", "offset": [4105, 4120]}, {"key": "not-liable", "type": "clause", "offset": [4155, 4165]}, {"key": "genuineness-of-documents", "type": "clause", "offset": [4426, 4450]}, {"key": "other-rights", "type": "definition", "offset": [4670, 4682]}, {"key": "if-borrower", "type": "clause", "offset": [4793, 4804]}, {"key": "to-reimburse", "type": "definition", "offset": [4811, 4823]}, {"key": "the-reimbursement-obligations", "type": "clause", "offset": [4915, 4944]}, {"key": "unreimbursed-amount", "type": "definition", "offset": [5080, 5099]}, {"key": "available-to", "type": "definition", "offset": [5153, 5165]}, {"key": "immediately-available-funds", "type": "clause", "offset": [5175, 5202]}, {"key": "payable-to", "type": "definition", "offset": [5284, 5294]}, {"key": "close-of-business", "type": "clause", "offset": [5312, 5329]}, {"key": "the-business", "type": "clause", "offset": [5337, 5349]}, {"key": "notice-to-each-lender", "type": "clause", "offset": [5366, 5387]}, {"key": "the-notice", "type": "clause", "offset": [5427, 5437]}, {"key": "a-lender", "type": "definition", "offset": [5453, 5461]}, {"key": "time-zone", "type": "clause", "offset": [5486, 5495]}, {"key": "applicable-lending-office", "type": "definition", "offset": [5516, 5541]}, {"key": "the-federal-funds-rate", "type": "definition", "offset": [5858, 5880]}, {"key": "the-day", "type": "definition", "offset": [5886, 5893]}, {"key": "by-the-lender", "type": "clause", "offset": [5991, 6004]}, {"key": "delivery-to-the", "type": "clause", "offset": [6076, 6091]}, {"key": "borrower-requests", "type": "clause", "offset": [6120, 6137]}, {"key": "to-borrower", "type": "definition", "offset": [6158, 6169]}, {"key": "written-certification", "type": "clause", "offset": [6305, 6326]}, {"key": "without-agent", "type": "definition", "offset": [6492, 6505]}, {"key": "receipt-of", "type": "clause", "offset": [6508, 6518]}, {"key": "consent-to", "type": "clause", "offset": [6556, 6566]}, {"key": "all-documents", "type": "definition", "offset": [6608, 6621]}, {"key": "reasonable-care", "type": "clause", "offset": [6627, 6642]}, {"key": "in-accordance-with", "type": "definition", "offset": [6693, 6711]}, {"key": "terms-and-conditions-of-the", "type": "clause", "offset": [6716, 6743]}, {"key": "lender-and-borrower", "type": "definition", "offset": [6753, 6772]}, {"key": "no-responsibility", "type": "clause", "offset": [6837, 6854]}, {"key": "required-by", "type": "definition", "offset": [6914, 6925]}, {"key": "the-authority", "type": "clause", "offset": [7059, 7072]}, {"key": "any-person", "type": "definition", "offset": [7076, 7086]}, {"key": "acts-or-omissions", "type": "definition", "offset": [7226, 7243]}, {"key": "any-action", "type": "definition", "offset": [7245, 7255]}, {"key": "delay-or-omission", "type": "clause", "offset": [7274, 7291]}, {"key": "the-transmission", "type": "clause", "offset": [7418, 7434]}, {"key": "conformity-with-applicable-laws", "type": "clause", "offset": [7497, 7528]}, {"key": "standards-of-care", "type": "definition", "offset": [7556, 7573]}, {"key": "uniform-customs-and-practice-for-documentary-credits", "type": "clause", "offset": [7591, 7643]}, {"key": "chamber-of-commerce", "type": "definition", "offset": [7659, 7678]}, {"key": "binding-upon", "type": "clause", "offset": [7700, 7712]}, {"key": "the-companies", "type": "definition", "offset": [7713, 7726]}, {"key": "action-taken", "type": "clause", "offset": [7797, 7809]}, {"key": "gross-negligence-or-willful-misconduct", "type": "definition", "offset": [7896, 7934]}, {"key": "termination-under", "type": "clause", "offset": [7983, 8000]}, {"key": "section-24", "type": "clause", "offset": [8001, 8012]}, {"key": "default-under", "type": "clause", "offset": [8042, 8055]}, {"key": "section-113", "type": "clause", "offset": [8056, 8068]}, {"key": "other-default", "type": "definition", "offset": [8128, 8141]}, {"key": "borrower-shall", "type": "clause", "offset": [8143, 8157]}, {"key": "benefit-of-lenders", "type": "clause", "offset": [8184, 8202]}, {"key": "equal-to", "type": "definition", "offset": [8233, 8241]}, {"key": "existing-lc-exposure", "type": "definition", "offset": [8251, 8271]}, {"key": "interest-bearing", "type": "definition", "offset": [8396, 8412]}, {"key": "cash-collateral-account", "type": "definition", "offset": [8413, 8436]}, {"key": "the-office", "type": "clause", "offset": [8462, 8472]}, {"key": "guaranteed-by", "type": "clause", "offset": [8520, 8533]}, {"key": "the-us", "type": "clause", "offset": [8534, 8541]}, {"key": "funds-on-deposit", "type": "clause", "offset": [8614, 8630]}, {"key": "interest-accrued", "type": "definition", "offset": [8684, 8700]}, {"key": "respective-representatives", "type": "definition", "offset": [8798, 8824]}, {"key": "all-claims", "type": "clause", "offset": [8859, 8869]}, {"key": "charges-and-expenses", "type": "clause", "offset": [8917, 8937]}, {"key": "reasonable-attorneys", "type": "definition", "offset": [8949, 8969]}, {"key": "the-issuance", "type": "clause", "offset": [9042, 9054]}, {"key": "cancellation-of", "type": "clause", "offset": [9092, 9107]}, {"key": "act-or-omission", "type": "clause", "offset": [9217, 9232]}, {"key": "no-person", "type": "clause", "offset": [9302, 9311]}, {"key": "the-foregoing", "type": "definition", "offset": [9343, 9356]}, {"key": "agreement-or", "type": "definition", "offset": [9468, 9480]}, {"key": "obligation-to", "type": "clause", "offset": [9487, 9500]}, {"key": "other-amounts-payable", "type": "clause", "offset": [9586, 9607]}, {"key": "in-this-agreement", "type": "clause", "offset": [9648, 9665]}, {"key": "the-obligation", "type": "clause", "offset": [9710, 9724]}, {"key": "agreement-control", "type": "clause", "offset": [9748, 9765]}], "samples": [{"hash": "cg1EbWIlStG", "uri": "/contracts/cg1EbWIlStG#lc-subfacility", "label": "Credit Agreement (Nci Building Systems Inc)", "score": 18.0, "published": true}], "size": 12, "hash": "c59e4d9a1dac68ca699ddc3ea7ce65ba", "id": 1}, {"snippet": "(a) Subject to the terms and conditions of this Agreement and applicable Law, Agent agrees to issue LCs under the Revolving Credit Tranche upon Borrower's delivery of an LC Request and an LC 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 LC is to be issued; provided that the LC Exposure may not exceed $60,000,000 and the Revolving Credit Commitment Usage may not exceed the aggregate commitment under the Revolving Credit Tranche (as such amount is reduced and canceled in accordance with this Agreement). Each LC (other than \u2587\u2587\u2587\u2587\u2587 Creek LCs) must expire no later than 13 months from its issuance; provided that any LC (other than \u2587\u2587\u2587\u2587\u2587 Creek LCs) 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 or (ii) a Default exists). Amounts drawn under \u2587\u2587\u2587\u2587\u2587 Creek LCs are subject to reinstatement upon the terms set forth therein. In no event may any LC have an expiration date later than the Revolving Credit Termination Date.", "snippet_links": [{"key": "terms-and-conditions-of-this-agreement", "type": "clause", "offset": [19, 57]}, {"key": "applicable-law", "type": "clause", "offset": [62, 76]}, {"key": "to-issue", "type": "clause", "offset": [91, 99]}, {"key": "revolving-credit-tranche", "type": "definition", "offset": [114, 138]}, {"key": "upon-borrower", "type": "definition", "offset": [139, 152]}, {"key": "delivery-of", "type": "clause", "offset": [155, 166]}, {"key": "lc-request", "type": "clause", "offset": [170, 180]}, {"key": "lc-agreement", "type": "definition", "offset": [188, 200]}, {"key": "by-agent", "type": "clause", "offset": [233, 241]}, {"key": "third-business-day", "type": "clause", "offset": [273, 291]}, {"key": "provided-that", "type": "clause", "offset": [354, 367]}, {"key": "lc-exposure", "type": "definition", "offset": [372, 383]}, {"key": "commitment-usage", "type": "definition", "offset": [436, 452]}, {"key": "aggregate-commitment", "type": "definition", "offset": [472, 492]}, {"key": "in-accordance-with", "type": "definition", "offset": [568, 586]}, {"key": "expiration-date", "type": "clause", "offset": [817, 832]}, {"key": "periods-of", "type": "clause", "offset": [848, 858]}, {"key": "as-selected", "type": "definition", "offset": [880, 891]}, {"key": "by-borrower", "type": "clause", "offset": [892, 903]}, {"key": "the-beneficiary", "type": "clause", "offset": [929, 944]}, {"key": "notice-to-the", "type": "clause", "offset": [1015, 1028]}, {"key": "in-no-event", "type": "clause", "offset": [1081, 1092]}, {"key": "default-exists", "type": "clause", "offset": [1171, 1185]}, {"key": "revolving-credit-termination-date", "type": "definition", "offset": [1349, 1382]}], "samples": [{"hash": "2hXnczbq29F", "uri": "/contracts/2hXnczbq29F#lc-subfacility", "label": "Credit Agreement (Vail Resorts Inc)", "score": 18.0, "published": true}], "size": 3, "hash": "4aa0f501f0cd16d98eb5fbd2f8782702", "id": 2}, {"snippet": "13 SECTION 3", "snippet_links": [{"key": "section-3", "type": "clause", "offset": [3, 12]}], "samples": [{"hash": "iYRUL1DS4az", "uri": "/contracts/iYRUL1DS4az#lc-subfacility", "label": "Credit Agreement (Vail Resorts Inc)", "score": 18.0, "published": true}], "size": 2, "hash": "24850e95808cd43c053209fc9f4020cc", "id": 3}, {"snippet": "(a CONDITIONS. Subject to the terms and conditions of this Agreement and applicable Law, Administrative Agent agrees to issue LCs upon Borrower's application therefor (denominated in Dollars) by delivering to Administrative Agent a properly completed Notice of LC and an LC Agreement with respect thereto no later than 10:00 a.m. Dallas, Texas time three (3) Business Days before such LC is to be issued; PROVIDED THAT (i) on any date of determination and after giving effect to any LC to be issued on such date, the Commitment Usage shall never exceed the Total Commitment then in effect, (ii) on any date of determination and after giving effect to any LC to be issued on such date, the LC Exposure shall never exceed $25,000,000, (iii) at the time of issuance of such LC, no Potential Default or Default shall exist, (iv) each LC requested by Borrower must be in an amount not less than $1,000,000, and (v) each LC must expire NO LATER than the EARLIER of the fifteenth (15th) day prior to the Termination Date or one (1) year from its issuance; PROVIDED THAT any LC may provide for automatic renewal for successive twelve (12) month periods (but no renewal period may extend beyond the fifteenth (15th) day prior to the Termination Date) unless Administrative Agent has given prior notice to the applicable beneficiary of its election not to extend such LC.", "snippet_links": [{"key": "terms-and-conditions-of-this-agreement", "type": "clause", "offset": [30, 68]}, {"key": "applicable-law", "type": "clause", "offset": [73, 87]}, {"key": "to-issue", "type": "clause", "offset": [117, 125]}, {"key": "upon-borrower", "type": "definition", "offset": [130, 143]}, {"key": "properly-completed", "type": "definition", "offset": [232, 250]}, {"key": "notice-of", "type": "clause", "offset": [251, 260]}, {"key": "lc-agreement", "type": "definition", "offset": [271, 283]}, {"key": "business-days", "type": "clause", "offset": [359, 372]}, {"key": "provided-that", "type": "clause", "offset": [405, 418]}, {"key": "date-of-determination", "type": "definition", "offset": [430, 451]}, {"key": "after-giving", "type": "clause", "offset": [456, 468]}, {"key": "issued-on", "type": "clause", "offset": [492, 501]}, {"key": "commitment-usage", "type": "definition", "offset": [517, 533]}, {"key": "the-total-commitment", "type": "clause", "offset": [553, 573]}, {"key": "in-effect", "type": "definition", "offset": [579, 588]}, {"key": "lc-exposure", "type": "definition", "offset": [689, 700]}, {"key": "time-of-issuance", "type": "clause", "offset": [746, 762]}, {"key": "no-potential-default", "type": "clause", "offset": [775, 795]}, {"key": "default-shall", "type": "definition", "offset": [799, 812]}, {"key": "by-borrower", "type": "clause", "offset": [843, 854]}, {"key": "prior-to-the-termination-date", "type": "clause", "offset": [984, 1013]}, {"key": "provide-for", "type": "clause", "offset": [1074, 1085]}, {"key": "automatic-renewal", "type": "definition", "offset": [1086, 1103]}, {"key": "renewal-period", "type": "definition", "offset": [1153, 1167]}, {"key": "unless-administrative-agent", "type": "definition", "offset": [1242, 1269]}, {"key": "the-applicable", "type": "clause", "offset": [1296, 1310]}, {"key": "election-not-to-extend", "type": "clause", "offset": [1330, 1352]}], "samples": [{"hash": "fiZUwvGWXAw", "uri": "/contracts/fiZUwvGWXAw#lc-subfacility", "label": "Revolving Credit Agreement (Protection One Alarm Monitoring Inc)", "score": 18.0, "published": true}], "size": 2, "hash": "8fe81b41b3595d065664457a4a006af2", "id": 4}, {"snippet": "21 2.4 Requests..................................................... 23 2.5 Termination.................................................. 24", "snippet_links": [], "samples": [{"hash": "jJSMn7uwyFJ", "uri": "/contracts/jJSMn7uwyFJ#lc-subfacility", "label": "Credit Agreement (Trikon Technologies Inc)", "score": 18.0, "published": true}], "size": 1, "hash": "76a854834bc11810bdc334344d81da2f", "id": 5}, {"snippet": "SWING LINE SUBFACILITY...", "snippet_links": [{"key": "swing-line-subfacility", "type": "definition", "offset": [0, 22]}], "samples": [{"hash": "a8CMG2l4kSI", "uri": "/contracts/a8CMG2l4kSI#lc-subfacility", "label": "Revolving Credit Agreement (Affiliated Computer Services Inc)", "score": 18.0, "published": true}], "size": 1, "hash": "9719b111527d0cfd02aba4da118502ea", "id": 6}, {"snippet": "(a) $6,000,000 LC Subfacility. Subject to the terms and conditions of this Agreement and applicable Law, a portion of the Facility not in excess of $6,000,000 shall be available to Borrower for the issuance of LCs by Agent, in the capacity of Issuing Lender, for Borrower's account upon Borrower's delivery of an LC Request in the form of EXHIBIT D, which must be received by Agent no later than 10:00 a.", "snippet_links": [{"key": "terms-and-conditions-of-this-agreement", "type": "clause", "offset": [46, 84]}, {"key": "applicable-law", "type": "clause", "offset": [89, 103]}, {"key": "a-portion", "type": "definition", "offset": [105, 114]}, {"key": "the-facility", "type": "definition", "offset": [118, 130]}, {"key": "to-borrower", "type": "definition", "offset": [178, 189]}, {"key": "the-issuance", "type": "clause", "offset": [194, 206]}, {"key": "by-agent", "type": "clause", "offset": [214, 222]}, {"key": "issuing-lender", "type": "definition", "offset": [243, 257]}, {"key": "upon-borrower", "type": "definition", "offset": [282, 295]}, {"key": "delivery-of", "type": "clause", "offset": [298, 309]}, {"key": "lc-request", "type": "clause", "offset": [313, 323]}, {"key": "form-of", "type": "definition", "offset": [331, 338]}, {"key": "exhibit-d", "type": "definition", "offset": [339, 348]}, {"key": "received-by", "type": "definition", "offset": [364, 375]}], "samples": [{"hash": "gg0C7HO1021", "uri": "/contracts/gg0C7HO1021#lc-subfacility", "label": "Credit Agreement (Michael Petroleum Corp)", "score": 18.0, "published": true}], "size": 1, "hash": "d42c0959100bc28eaa0f0c7d88456bec", "id": 7}, {"snippet": "13 2.4 Termination of Revolving Facilities. . . . . . . . . . . . . . . . . . . 16", "snippet_links": [{"key": "termination-of", "type": "definition", "offset": [7, 21]}, {"key": "revolving-facilities", "type": "definition", "offset": [22, 42]}], "samples": [{"hash": "cg1EbWIlStG", "uri": "/contracts/cg1EbWIlStG#lc-subfacility", "label": "Credit Agreement (Nci Building Systems Inc)", "score": 18.0, "published": true}], "size": 1, "hash": "31b8d040812eda65d266286f9393ab84", "id": 8}, {"snippet": "(a) Subject to the terms and conditions of this Agreement and applicable Law, Issuing Lender agrees, at any time and from time to time (but not later than 30 days prior to the Revolving Credit Termination Date), to issue LCs under the Revolving Credit Facility upon Borrower's delivery of an LC Request and a duly executed LC Agreement, each of which must be received by Issuing Lender no later than 12:00 noon on the second Business Day before the requested LC is to be issued; provided that the LC Exposure may not exceed $15,000,000, and the Revolving Credit Commitment Usage may not exceed the Revolving Credit Commitment (as such amount is reduced and canceled in accordance with this Agreement). Each LC must expire no later than 13 months after such LC's issuance, provided that (i) any LC may, at Borrower's request, provide that it is self-extending upon its expiration date for successive periods of 6 to 12 months each unless Issuing Lender has given the beneficiary under such LC at least 30 days (but no more than 120 days) prior written notice to the contrary, and (ii) each LC must expire no later than the Revolving Credit Termination Date.", "snippet_links": [{"key": "terms-and-conditions-of-this-agreement", "type": "clause", "offset": [19, 57]}, {"key": "applicable-law", "type": "clause", "offset": [62, 76]}, {"key": "issuing-lender", "type": "definition", "offset": [78, 92]}, {"key": "at-any-time", "type": "clause", "offset": [101, 112]}, {"key": "from-time-to-time", "type": "clause", "offset": [117, 134]}, {"key": "prior-to-the", "type": "clause", "offset": [163, 175]}, {"key": "revolving-credit-termination-date", "type": "definition", "offset": [176, 209]}, {"key": "to-issue", "type": "clause", "offset": [212, 220]}, {"key": "the-revolving-credit-facility", "type": "clause", "offset": [231, 260]}, {"key": "upon-borrower", "type": "definition", "offset": [261, 274]}, {"key": "delivery-of", "type": "clause", "offset": [277, 288]}, {"key": "lc-request", "type": "clause", "offset": [292, 302]}, {"key": "duly-executed", "type": "clause", "offset": [309, 322]}, {"key": "lc-agreement", "type": "definition", "offset": [323, 335]}, {"key": "received-by", "type": "definition", "offset": [359, 370]}, {"key": "business-day", "type": "clause", "offset": [425, 437]}, {"key": "provided-that", "type": "clause", "offset": [479, 492]}, {"key": "lc-exposure", "type": "definition", "offset": [497, 508]}, {"key": "commitment-usage", "type": "definition", "offset": [562, 578]}, {"key": "in-accordance-with", "type": "definition", "offset": [666, 684]}, {"key": "expiration-date", "type": "clause", "offset": [868, 883]}, {"key": "periods-of", "type": "clause", "offset": [899, 909]}, {"key": "the-beneficiary", "type": "clause", "offset": [962, 977]}, {"key": "notice-to-the", "type": "clause", "offset": [1051, 1064]}], "samples": [{"hash": "6OLx5ThGLUk", "uri": "/contracts/6OLx5ThGLUk#lc-subfacility", "label": "Credit Agreement (Morningstar Group Inc)", "score": 18.0, "published": true}], "size": 1, "hash": "12b20f398d994df0809fe842c1ecc6ae", "id": 9}, {"snippet": "23 2.5 Swing Line Subfacility..........................................26 2.6 Terminations or Reductions of Commitments.......................27 2.7", "snippet_links": [{"key": "swing-line-subfacility", "type": "definition", "offset": [7, 29]}, {"key": "terminations-or-reductions-of-commitments", "type": "clause", "offset": [78, 119]}], "samples": [{"hash": "g3Fco2DbZxh", "uri": "/contracts/g3Fco2DbZxh#lc-subfacility", "label": "Revolving Credit and Term Loan Agreement (Coorstek Inc)", "score": 18.0, "published": true}], "size": 1, "hash": "e6ada5fc9e18aa3d5f00e156e5a55fbd", "id": 10}], "next_curs": "ClcSUWoVc35sYXdpbnNpZGVyY29udHJhY3RzcjMLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhdsYy1zdWJmYWNpbGl0eSMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"title": "Lc Subfacility", "children": [["general", "General"], ["cash-collateral", "Cash Collateral"], ["obligation-of-lenders", "Obligation of Lenders"], ["indemnification", "INDEMNIFICATION"], ["reimbursement-obligation", "Reimbursement Obligation"]], "size": 39, "parents": [["borrowing-provisions", "Borrowing Provisions"], ["commitment", "Commitment"], ["credit-facility", "Credit Facility"], ["definitions-and-terms", "Definitions and Terms"], ["accounting-principles", "Accounting Principles"]], "id": "lc-subfacility", "related": [["letter-of-credit-subfacility", "Letter of Credit Subfacility", "Letter of Credit Subfacility"], ["the-letter-of-credit-subfacility", "The Letter of Credit Subfacility", "The Letter of Credit Subfacility"], ["swingline-loan-subfacility", "Swingline Loan Subfacility", "Swingline Loan Subfacility"], ["letter-of-credit-subfeature", "Letter of Credit Subfeature", "Letter of Credit Subfeature"], ["letter-of-credit-draw", "Letter of Credit Draw", "Letter of Credit Draw"]], "related_snippets": [], "updated": "2025-07-07T16:38:45+00:00", "also_ask": ["What are the essential terms that must be included in an LC Subfacility clause to ensure enforceability?", "How can the LC Subfacility be structured to maximize flexibility for the borrower while protecting the lender\u2019s interests?", "What are the most common negotiation points or pitfalls in LC Subfacility provisions?", "How do LC Subfacility clauses differ across jurisdictions or compared to standard letter of credit facilities?", "What are the key risks or fatal flaws that could render an LC Subfacility clause unenforceable in court?"], "drafting_tip": "Specify the maximum amount, permitted uses, and drawdown procedures to ensure clarity, prevent misuse, and facilitate compliance.", "explanation": "The LC Subfacility clause establishes a specific portion of a broader credit facility that is dedicated to issuing letters of credit (LCs) to the borrower. Under this clause, the lender agrees to make available a set amount within the overall loan facility exclusively for the issuance of LCs, which can be used by the borrower to support trade transactions or guarantee payment obligations to third parties. This arrangement ensures that the borrower has access to necessary trade finance tools while clearly delineating the maximum exposure the lender is willing to accept for LCs, thereby managing risk and providing operational clarity for both parties."}, "json": true, "cursor": ""}}