The Cimarron LOC Clause Samples
The Cimarron LOC clause establishes the terms and conditions governing a letter of credit (LOC) issued by or for the benefit of Cimarron. Typically, this clause outlines the requirements for drawing on the LOC, such as documentation standards, deadlines, and the circumstances under which funds may be accessed. It may also specify the obligations of the parties involved, including the issuer, beneficiary, and applicant. The core function of this clause is to ensure that the financial security provided by the LOC is clearly defined and enforceable, thereby reducing the risk of non-payment or disputes over access to funds.
The Cimarron LOC. On the Effective Date, the Settlors shall cancel the Cimarron LOC and remit the funds from the Cimarron LOC to the Cimarron Standby Trust Fund already in existence, or to a new Cimarron Standby Trust Fund that may be established by the Cimarron Trustee in accordance with applicable NRC regulations (which, together with the Funding, constitutes the “Funding and Consideration”). If the Cimarron Trustee elects to establish a new Cimarron Standby Trust Fund, the Cimarron Trustee shall provide NRC with proposed language for the agreement governing the new Cimarron Standby Trust Fund to ensure that the agreement conforms with 10 C.F.R. 70.25(e)(ii).