Examples of Fronting Exposure in a sentence
If the reallocation described in sub-paragraph (a)(iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law Cash Collateralize the Issuing Banks’ or the Swingline Lender’s applicable Fronting Exposure in accordance with the procedures set forth in Section 2.04(g) (Letters of Credit).
At any time that there shall exist a Defaulting Lender, immediately upon the request of the Administrative Agent or Issuing Bank, the Borrower shall deliver to the Administrative Agent Cash Collateral in an amount sufficient to cover all Fronting Exposure (after giving effect to Section 2.20(a)(iv) (Defaulting Lenders) and any Cash Collateral provided by the Defaulting Lender).
So long as any Lender is a Defaulting Lender, the Issuing Bank shall not be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.