Common use of Presigned Draft Forms Clause in Contracts

Presigned Draft Forms. (i) Subject to clause (ii) of this paragraph (d), in order to enable the Revolving Credit Lenders to create Bankers’ Acceptances or complete Drafts in the manner specified in this Section 2.03, the Borrower shall supply each Revolving Credit Lender or its agent with such number of Drafts as it may reasonably request, duly signed on behalf of the Borrower. Each Revolving Credit Lender hereby indemnifies the Borrower against any loss or improper use thereof by such Revolving Credit Lender or its agents, will exercise and cause its agents to exercise such care in the custody and safekeeping of Drafts as it would exercise in the custody and safekeeping of similar property owned by it and will, upon request by the Borrower, promptly advise the Borrower of the number and designations, if any, of uncompleted Drafts held by it or its agents for the Borrower. The signature of any officer of the Borrower on a Draft may be mechanically reproduced and any BA Instrument bearing a facsimile signature shall be binding upon the Borrower as if it had been manually signed. Even if the individuals whose manual or facsimile signature appears on any BA Instrument no longer hold office at the date of its acceptance by the Revolving Credit Lender or at any time after such date, any BA Instrument so signed shall be valid and binding upon the Borrower. No Revolving Credit Lender shall be liable for its failure to accept a Draft as required hereby if the cause of such failure is, in whole or in part, due to the failure of the Borrower to provide Drafts to such Revolving Credit Lender on a timely basis. (ii) The Borrower hereby irrevocably appoints each Revolving Credit Lender as its attorney to sign and endorse on its behalf, manually or by facsimile or mechanical signature, any BA Instrument necessary to enable each Revolving Credit Lender to make Drawings in the manner specified in this Section 2.03. All BA Instruments signed or endorsed on the Borrower’s behalf by a Revolving Credit Lender shall be binding on the Borrower, all as if duly signed or endorsed by the Borrower. Each Revolving Credit Lender shall (i) maintain a record with respect to any BA Instrument completed in accordance with this clause (ii), voided by it for any reason, accepted and purchased or purchased or, in the case of a BA Equivalent Note, exchanged for another BA Instrument by it pursuant to this paragraph (d), and cancelled at its respective maturity; and (ii) retain such records in the manner and for the statutory periods provided by laws which apply to such Revolving Credit Lender and make such records available to the Borrower acting reasonably. On request by the Borrower, a Revolving Credit Lender shall cancel and return to the possession of the Borrower all BA Instruments which have been pre-signed or pre-endorsed on behalf of the Borrower and which are held by such Revolving Credit Lender and are not required to make Drawings in accordance with this Section 2.03.

Presigned Draft Forms. (i) Subject to clause (ii) of this paragraph (d), in order to enable the Revolving Credit Lenders to create Bankers’ Banker’s Acceptances or complete Drafts in the manner specified in this Section 2.03, the Borrower shall supply each Revolving Credit Lender or its agent with such number of Drafts as it may reasonably request, duly signed on behalf of the Borrower. Each Revolving Credit Lender hereby indemnifies the Borrower against any loss or improper use thereof by such Revolving Credit Lender or its agents, will exercise and cause its agents to exercise such care in the custody and safekeeping of Drafts as it would exercise in the custody and safekeeping of similar property owned by it and will, upon request by the Borrower, promptly advise the Borrower of the number and designations, if any, of uncompleted Drafts held by it or its agents for the Borrower. The signature of any officer of the Borrower on a Draft may be mechanically reproduced and any BA Instrument bearing a facsimile signature shall be binding upon the Borrower as if it had been manually signed. Even if the individuals whose manual or facsimile signature appears on any BA Instrument no longer hold office at the date of its acceptance by the Revolving Credit Lender or at any time after such date, any BA Instrument so signed shall be valid and binding upon the Borrower. No Revolving Credit Lender shall be liable for its failure to accept a Draft as required hereby if the cause of such failure is, in whole or in part, due to the failure of the Borrower to provide Drafts to such Revolving Credit Lender on a timely basis. (ii) The Borrower hereby irrevocably appoints each Revolving Credit Lender as its attorney to sign and endorse on its behalf, manually or by facsimile or mechanical signature, any BA Instrument necessary to enable each Revolving Credit Lender to make Drawings in the manner specified in this Section 2.03. All BA Instruments signed or endorsed on the Borrower’s behalf by a Revolving Credit Lender shall be binding on the Borrower, all as if duly signed or endorsed by the Borrower. Each Revolving Credit Lender shall (i) maintain a record with respect to any BA Instrument completed in accordance with this clause (ii), voided by it for any reason, accepted and purchased or purchased or, in the case of a BA Equivalent Note, exchanged for another BA Instrument by it pursuant to this paragraph (d), and cancelled at its respective maturity; and (ii) retain such records in the manner and for the statutory periods provided by laws which apply to such Revolving Credit Lender and make such records available to the Borrower acting reasonably. On request by the Borrower, a Revolving Credit Lender shall cancel and return to the possession of the Borrower all BA Instruments which have been pre-signed or pre-endorsed on behalf of the Borrower and which are held by such Revolving Credit Lender and are not required to make Drawings in accordance with this Section 2.03.