NOR LIABILITY OF, THE LENDER
ON ACCOUNT OF:
(A)
ANY DELAY OR REFUSAL BY AN ISSUER TO ISSUE AN
L/C.
(B)
ANY ACTION OR INACTION OF AN ISSUER ON
ACCOUNT OF OR IN RESPECT TO, ANY L/C.
(V)
THE BORROWERS SHALL REIMBURSE THE ISSUER, IMMEDIATELY UPON THE
DRAWING UNDER ANY L/C, FOR THE AMOUNT OF SUCH DRAWING. IN THE EVENT THAT THE
BORROWERS FAIL TO SO REIMBURSE THE ISSUER, THE BORROWERS IMMEDIATELY SHALL
REIMBURSE THE LENDER FOR THE AMOUNT OF SUCH DRAWING. TO THE EXTENT WHICH THE
BORROWERS FAIL TO SO REIMBURSE THE ISSUER OR THE LENDER, THE LENDER, WITHOUT THE
REQUEST OF THE BORROWERS, MAY ADVANCE UNDER THE REVOLVING CREDIT ANY AMOUNT
WHICH THE BORROWERS ARE SO OBLIGATED TO PAY TO THE LENDER OR THE ISSUER, OR FOR
WHICH THE BORROWERS, THE ISSUER, OR THE LENDER BECOMES OBLIGATED ON ACCOUNT OF,
OR IN RESPECT TO, ANY L/C. SUCH ADVANCE SHALL BE MADE WHETHER OR NOT A
SUSPENSION EVENT IS THEN IN EXISTENCE OR SUCH ADVANCE WOULD RESULT IN
AVAILABILITY BEING EXCEEDED. SUCH ACTION SHALL NOT CONSTITUTE A WAIVER OF THE
LENDER'S RIGHTS UNDER SECTION 1-7(B), BELOW.
4
1-5.
THE LOAN ACCOUNT.
(A)
AN ACCOUNT ("LOAN ACCOUNT") SHALL BE OPENED ON THE BOOKS OF THE
LENDER IN WHICH LOAN ACCOUNT A RECORD MAY BE KEPT OF ALL LOANS MADE UNDER OR
PURSUANT TO THIS AGREEMENT AND OF ALL PAYMENTS THEREON.
(B)
THE LENDER MAY ALSO KEEP A RECORD (EITHER IN THE LOAN ACCOUNT OR
ELSEWHERE, AS THE LENDER MAY FROM TIME TO TIME ELECT) OF ALL INTEREST, FEES,
SERVICE CHARGES, COSTS, EXPENSES, AND OTHER DEBITS OWED THE LENDER ON ACCOUNT OF
THE LIABILITIES AND OF ALL CREDITS AGAINST SUCH AMOUNTS SO OWED.
(C)
ALL CREDITS AGAINST THE LIABILITIES SHALL BE CONDITIONAL UPON
FINAL PAYMENT TO THE LENDER OF THE ITEMS GIVING RISE TO SUCH CREDITS. THE AMOUNT
OF ANY ITEM CREDITED AGAINST THE LIABILITIES WHICH IS CHARGED BACK AGAINST THE
LENDER FOR ANY REASON OR IS NOT SO PAID SHALL BE A LIABILITY AND SHALL BE ADDED
TO THE LOAN ACCOUNT, WHETHER OR NOT THE ITEM SO CHARGED BACK OR NOT SO PAID IS
RETURNED.
(D)
EXCEPT AS OTHERWISE PROVIDED HEREIN, ALL FEES, SERVICE CHARGES,
COSTS, AND EXPENSES FOR WHICH THE BORROWERS ARE OBLIGATED HEREUNDER ARE PAYABLE
ON DEMAND. IN THE DETERMINATION OF AVAILABILITY, THE LENDER MAY DEEM FEES,
SERVICE CHARGES, ACCRUED INTEREST, AND OTHER PAYMENTS OR DEPOSITS AS HAVING BEEN
ADVANCED UNDER THE REVOLVING CREDIT IF SUCH AMOUNTS ARE THEN DUE AND PAYABLE
INCLUSIVE OF DEPOSITS FOR FEES WHETHER INCURRED AT THE TIME OF DEPOSIT OR AS
DULY ACCOUNTED FOR IN ACCORDANCE WITH THE TERMS SET FORTH HEREIN (PROVIDED,
HOWEVER, THAT FEES WHICH ARE EARNED HEREUNDER BUT NOT YET DUE AND PAYABLE SHALL
NOT BE DEEMED AS HAVING BEEN ADVANCED UNDER THE REVOLVING CREDIT).
(E)
THE LENDER, WITHOUT THE REQUEST OF THE BORROWERS, MAY ADVANCE
UNDER THE REVOLVING CREDIT ANY INTEREST, FEE, SERVICE CHARGE, OR OTHER PAYMENT
TO WHICH THE LENDER IS ENTITLED FROM THE BORROWERS PURSUANT HERETO