Equity LC definition

Equity LC means a letter of credit, acceptable to the Agent in the Agent’s reasonable discretion, for all or any portion of the amount of Required Equity. The Equity LC shall (i) be issued by a financial institution (acceptable to the Agent in its reasonable discretion) with a long-term unsecured credit rating of at least “A/A2” by Standard & Poor’s Ratings Services or ▇▇▇▇▇’▇ Investors Service and $500,000,000 of Tier I capital, (ii) name the Agent as the beneficiary thereof, and (iii) be subject to draw by the Agent upon (A) the occurrence of an Event of Default, (B) a downgrade of the issuer’s credit rating below that set forth in clause (ii) above (provided, however, that if the Borrower delivers a replacement Equity LC acceptable to the Agent within thirty (30) days after the Borrower receives notice of such downgrade, the Agent shall promptly reimburse the Borrower any amount of the Equity LC so drawn pursuant to this clause (iii)(B)) and (C) failure of the Borrower to arrange for extension of the Equity LC on or before thirty (30) days prior to its expiration.
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Examples of Equity LC in a sentence

  • This Agreement shall terminate and be of no further force and effect on the day that is the earliest to occur of (a) the Termination Date, (b) 5 days following the Conversion Date and (c) the date on which the Parent has funded its Maximum Available Equity Contribution Amount pursuant to Section 2.01(a) or (b) (including by way of draw under the Contingent Equity LC) (such earliest date being the “Support Termination Date”).

  • Until the Termination Date, the Parent will not exercise any rights of subrogation or contribution against the Borrower, whether arising by contract or operation of law or otherwise (including, without limitation, any such right arising under applicable bankruptcy or insolvency law), by reason of any payment by the Parent (including any draw on the Contingent Equity LC) pursuant to the provisions of this Agreement or the issuance, provision or maintenance of the Contingent Equity LC.

  • No action under or in connection with this Agreement shall be brought against any Non-Recourse Party, and no judgment for any deficiency upon the obligations hereunder shall be obtainable by any Secured Party against any Non-Recourse Party, except as hereinafter set forth in this Section or as expressly provided in the Contingent Equity LC.

  • Delivery to Agent of legal opinions of counsel to each Major Project Participant (other than any Equity LC Issuer), in form and substance satisfactory to the Agent.

  • The Agent shall have received satisfactory evidence that the Required Equity as of the closing date is available to the Borrower or shall have delivered to the Agent the Equity LC.

  • Capco has contributed 2% of the Base Equity through recognition of certain capitalized development costs and will not be required to provide any Base Equity L/C or any Equity Support L/Cs. Subject to Section 1.2(b), each Party shall be required to provide its equity at the times and in the form required by the Lenders, and as proposed herein.

  • The Collateral Agent shall deposit the amounts received from the issuer of the Equity L/C in the Construction Account.

  • Delivery to Agent of certificates issued by the Secretary of State of Texas and, if other than such state, the state of formation of each Major Project Participant other than any Equity LC Issuer certifying that such Major Project Participant is in good standing and is qualified to do business in, and has paid all franchise taxes or similar taxes due to, Texas (if applicable) and its state of formation.

  • Notwithstanding the provisions of Section 1.2(b), any shares issued against the proceeds of each draw under the Base Equity L/C posted by Coastal SP that would cause the proportion of shares of the Company owned by Coastal SP to exceed 90.75% shall be transferred and reissued without payment of further consideration by Cogen other than the transfer to Coastal SP of the right to receive the Capital Payment (as defined in the Equity-Put Agreement) pursuant to the Equity-Put Agreement.

  • The Administrative Agent shall have received the Contingent Equity LC and evidence that the full amount of the Base Equity Contribution Amount has been contributed to the Borrower on or prior to the date of such initial extension of credit.