Standby Letter of Credit Facility Sample Clauses
The Standby Letter of Credit Facility clause establishes the terms under which a lender provides a standby letter of credit (SBLC) to a borrower, typically as a form of financial guarantee. This clause outlines the conditions for issuing the SBLC, such as the maximum amount, duration, and the specific obligations it secures—often related to payment or performance under a contract. By defining these parameters, the clause ensures that the beneficiary has a reliable means of recourse if the applicant fails to meet their obligations, thereby reducing credit risk and enhancing trust between parties.
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Standby Letter of Credit Facility. 17.1 The Borrower shall have the right to request the Issuing Bank to issue a standby letter of credit counter-indemnified by the Participating Lenders on the terms and subject to the conditions set out in this Agreement.
Standby Letter of Credit Facility. For the period from the date of this Agreement through June 30, 1997, NBD agrees to issue Standby Letters of Credit for a Borrower's account subject to all of the terms and conditions of this Agreement and on the following terms and conditions:
(a) NBD agrees to issue for a Borrower's account from time to time standby letters of credit (together with all replacements thereof and amendments thereto, each, a "Standby Letter of Credit" and collectively, the "Standby Letters of Credit").
(b) The total aggregate face amount of outstanding Standby Letters of Credit and unreimbursed draws under Standby Letters of Credit that have been drawn on may not exceed $2,500,000.
(c) Each Standby Letter of Credit must have an expiry date of not later than one year from the date of issuance, but may contain a usual and customary provision providing for automatic one year extensions unless NBD gives 60 days prior written notice that it will not extend the expiry date.
(d) A Borrower must execute NBD's standard documentation relating to the issuance of standby letters of credit (for convenience, such documentation, together with all other documentation related to the Standby Letters of Credit, as may be amended or restated from time to time, is referred to collectively as the "Standby Letter of Credit Documents" and individually as a "Standby Letter of Credit Document").
(e) A Borrower must (i) pay to NBD on any date on which NBD pays a draft presented under a Standby Letter of Credit, a sum equal to the amount so paid plus a disbursement fee of $200 plus any and all expenses that NBD may pay or incur relative to the Standby Letter of Credit, (ii) immediately pay to NBD any and all expenses incurred by NBD in enforcing or protecting any rights under this Agreement or any of the Standby Letter of Credit Documents or the other Loan Documents, and (iii) immediately upon demand by NBD pay to NBD interest on any and all amounts remaining unpaid by a Borrower under the Standby Letter
Standby Letter of Credit Facility. The expiration date of the Standby Letter of Credit Facility referenced in Section 4 of the Credit Agreement is hereby extended to February 28, 1997. Accordingly, Section 4.01 of the Credit Agreement as previously modified is modified by inserting therein the date "February 28, 1997." Sections 4.02 and 4.06 of the Credit Agreement as previously modified are amended by inserting therein the date of "February 28, 1997."
Standby Letter of Credit Facility. The Borrower shall pay to the Bank on each Accommodation Date on which a Standby Letter of Credit Liability is established a Standby Letter of Credit Fee at the [*] rate calculated on the face value of the Standby Letter of Credit and computed from such date until the day on which the Standby Letter of Credit falls due for payment.
Standby Letter of Credit Facility. Barclays facility, dated July 4, 2005, in an amount of $125,000 to Aspen Insurance U.S. Services Inc.
Standby Letter of Credit Facility