Common use of Participating Banks Clause in Contracts

Participating Banks. Ownership of Interests in the Participation; Repurchases by the Letter of Credit Issuing Banks. Each Participating Bank hereby represents and warrants to each Letter of Credit Issuing Bank that the purchase of its Participation in the Letters of Credit (a) is a legal investment pursuant to the Law under which such Participating Bank is organized and operates, (b) has been duly authorized and approved by all necessary action of the management of such Participating Bank, and (c) is made for such Participating Bank's own account for the purpose of investment only and with no present intention of disposing of the same. Upon the occurrence of an Event of Default and failure to consent to a change in this Agreement where such Participating Bank's consent is required pursuant to this Article IV, each Letter of Credit Issuing Bank, or any party designated by it, shall have the right (but not the obligation) to repurchase such Participating Bank's Participation in any Letter of Credit for a purchase price equal to any unpaid amount due the Participating Bank with respect to such Participation. Upon demand and payment therefor, such Participating Bank shall promptly transfer to such Letter of Credit Issuing Bank its Participation in any such Letter of Credit by executing and delivering to such Letter of Credit Issuing Bank an instrument of transfer in form and substance satisfactory to such Letter of Credit Issuing Bank and such Participating Bank; provided however, that failure by such Participating Bank to do so shall not affect such Letter of Credit Issuing Bank's repurchase of such Participating Bank's Participation in any such Letter of Credit, which repurchase shall be effective upon payment therefor by such Letter of Credit Issuing Bank to such Participating Bank. At any time before each payment, such Letter of Credit Issuing Bank may withdraw and terminate its offer to repurchase such Participating Bank's Participation in any such Letter of Credit prior to the payment of such price.

Participating Banks. Ownership of Interests in the Participation; Repurchases by the Letter of Credit Issuing BanksChase. Each Participating Bank hereby represents and warrants to each Letter of Credit Issuing Bank Chase that the purchase of its Participation in the Letters of Credit (a) is a legal investment pursuant to the Law under which such Participating Bank is organized and operates, (b) has been duly authorized and approved by all necessary action of the management of such Participating Bank, and (c) is made for such Participating Bank's own account for the purpose of investment only and with no present intention of disposing of the sameaccount. Upon the occurrence of an Event of Default and failure to consent to a change in this Agreement where such Participating Bank's consent is required pursuant to this Article IV, each Letter of Credit Issuing BankChase, or any party designated by it, shall have the right (but not the obligation) to repurchase such Participating Bank's Participation in any Letter of Credit for a purchase price equal to any unpaid amount due the Participating Bank with respect to such Participation. Upon demand and payment therefor, such Participating Bank shall promptly transfer to such Letter of Credit Issuing Bank Chase its Participation in any such Letter of Credit by executing and delivering to such Letter of Credit Issuing Bank Chase an instrument of transfer in form and substance satisfactory to such Letter of Credit Issuing Bank Chase and such Participating Bank; provided however, that failure by such Participating Bank to do so shall not affect such Letter of Credit Issuing BankChase's repurchase of such Participating Bank's Participation in any such Letter of Credit, which repurchase shall be effective upon payment therefor by such Letter of Credit Issuing Bank Chase to such Participating Bank. At any time before each payment, such Letter of Credit Issuing Bank Chase may withdraw and terminate its offer to repurchase such Participating Bank's Participation in any such Letter of Credit prior to the payment of such price.