Letter of Credit Draft definition
Examples of Letter of Credit Draft in a sentence
The amount of any drafts honored or paid by Bank and which are drawn under any Letter of Credit ("Draft Amount") shall be treated as loans under, and shall accrue interest in accordance with the terms of, the Revolving Line from the date of payment of such draft by Bank.
The Borrower hereby authorizes Lender, at Lender's option, to make a Line of Credit Advance under this Agreement in an amount equal to the amount paid by the Lender, under any Letter of Credit or Letter of Credit Draft, as reimbursement for such payment.
At Lender's option, such amounts may be applied by Lender to reimburse the Lender for payments made under a Letter of Credit or Letter of Credit Draft or to payment of such other Liabilities as the Lender shall determine.
Such amounts shall not be used by the Lender to pay any amounts drawn under any Letter of Credit or Letter of Credit Draft.
The Borrower further agrees to pay the Lender a commission on the undrawn amount of each Letter of Credit (which amount shall include, without limitation, the amount of each Letter of Credit Draft accepted by the Lender but unpaid) in the amounts and at such times as are set forth in Section 2.5(e).
Any reimbursement obligations for each payment made by Lender under or pursuant to any Letter of Credit or Letter of Credit Draft and any fees or interest accrued thereon shall be part of the Liabilities, shall be payable by Borrower to Lender within two day of demand, and from the date of payment until the date of reimbursement to Lender, shall bear interest at the rate then applicable to the Revolving Loans hereunder.
The Borrower further agrees to pay to the Lender, on demand, interest at the Default Rate, on any amount paid by the Lender, under or pursuant to any Letter of Credit or Letter of Credit Draft from the date of payment until the date of reimbursement to the Lender.
The Borrower shall pay the Lender, a commission (the "Letter of Credit Commission") on the undrawn amount of each Letter of Credit and on each Letter of Credit Draft accepted by the Lender but not paid, at a rate equal to the then-applicable Applicable Margin for Eurodollar Advances per annum calculated on the basis of actual days elapsed over for year of 360 days.
The Borrower agrees to reimburse the Lender on demand for each payment made by the Lender under or pursuant to any Letter of Credit or Letter of Credit Draft.
Borrowers further agree to pay to Lender a Letter of Credit fee equal to one and one-half percent (1.5%) per annum on the aggregate undrawn face amount of all Letters of Credit outstanding and on each Letter of Credit Draft accepted by Lender.