Financial Standby Letter of Credit definition

Financial Standby Letter of Credit means a Letter of Credit pursuant to which the beneficiary may draw following a default under an obligation to pay money to the beneficiary.

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Financial Standby Letter of Credit means a letter of credit or similar arrangement that represents an irrevocable obligation to a third-party beneficiary:

Financial Standby Letter of Credit means any Standby Letter of Credit that is not a Performance Standby Letter of Credit.

Examples of Financial Standby Letter of Credit in a sentence

Upon the issuance of a Letter or Credit by an Issuing Bank, such Issuing Bank shall notify the Administrative Agent as to whether such Letter of Credit shall be classified a Financial Standby Letter of Credit or a Performance Standby Letter of Credit for purposes hereof.
Notwithstanding anything to the contrary contained herein, the determination of whether a Letter of Credit shall be classified as a Financial Standby Letter of Credit or a Performance Standby Letter of Credit for purposes hereof shall be made by the Issuing Bank that has issued such Letter of Credit, and such determination shall be presumed correct, absent manifest error.
Each Advance/Credit Request Form submitted by Borrowers to Agent requesting the issuance of a Performance or Financial Standby Letter of Credit shall be certified by the chief financial officer or controller of the Company and represent as to the matters set forth in Paragraph 2.7(a) hereof.
Each Advance/Credit Request Form submitted by Borrowers to Agent requesting the issuance of a Performance or Financial Standby Letter of Credit shall be certified by the chief financial officer or controller of SunSource Inc.

More Definitions of Financial Standby Letter of Credit

Financial Standby Letter of Credit means a standby Letter of Credit under which the beneficiary is entitled to draw thereon in the event that the account party (or the Person or Persons on whose behalf such Letter of Credit was issued) fails to perform a financial obligation. By way of example, a Financial Standby Letter of Credit includes (a) a standby Letter of Credit that secures an obligation to repay borrowed money or to pay invoices, insurance premiums or other monetary obligations, (b) a standby Letter of Credit issued to back a bank guarantee, surety bond or other similar instrument issued to secure an obligation to repay borrowed money or to pay invoices, insurance premiums or other monetary obligations and (c) each Existing Letter of Credit that is identified as a “Financial Standby Letter of Credit” on Schedule 3.01.

Financial Standby Letter of Credit means any Standby Letter of Credit which any Lender is required under any Requirement of Law (including under 12 CFR Part 3, Appendix A, Section 3, clause (b)) to classify as a financial letter of credit with respect to its issuance thereof or participation therein pursuant to this Agreement.

Financial Standby Letter of Credit means a letter of credit or similar arrangement, issued, confirmed or paid, or in respect of which value is transferred (including acceptance of a draft), by Bank and/or an affiliate of Bank (or correspondent bank), for account of one or more applicants, that represents an irrevocable obligation to a third-party beneficiary: (a) to repay money borrowed by, or advanced to, or for the account of, a second party (the account party); or (b) to make payment on behalf of the account party, in the event that the account party fails to fulfill its obligation to the beneficiary. The determination that a letter of credit or similar arrangement is a Financial Standby Letter of Credit shall be made by Bank in its sole and absolute discretion.

Financial Standby Letter of Credit shall have the meaning given to that term in Section III.D.1.d. of Appendix A to Regulation Y issued by the Federal Reserve Board.

Financial Standby Letter of Credit means a letter of credit or similar independent undertaking, however named or described, issued, confirmed or paid, or in respect of which value is transferred (including acceptance of a draft), by Bank and/or an affiliate of Bank (or correspondent bank), for the account of one or more applicants, that represents an obligation to a third-party beneficiary: (a) to repay money borrowed by, or advanced to, or for the account of, a second party (the account party); or (b) to make payment on behalf of the account party, in the event that the account party fails to fulfill its obligation to the beneficiary. The determination that a letter of credit or similar undertaking is a Financial Standby Letter of Credit shall be made by Bank in its discretion.

Financial Standby Letter of Credit means any Letter of Credit that constitutes a "financial guarantee-type standby letter of credit" or a "financial guarantee standby letter of credit" or the like under the risk-based capital guidelines of the Comptroller of the Currency or the Federal Reserve Board, as determined in good faith by the related LC Issuer.

Financial Standby Letter of Credit means a standby letter of credit in form and substance satisfactory to the Lenders issued by the Agent for the account of the Borrower in support of an obligation arising other than in respect of the purchase of goods or other trade.