LETTER OF CREDIT,
THEN, NOTWITHSTANDING CLAUSE (II) ABOVE, THE OBLIGATION OF THE BORROWER TO
REIMBURSE THE PORTION OF SUCH UNREIMBURSED LC DISBURSEMENT FUNDED BY SUCH LENDER
SHALL BE CONVERTED TO, AND SHALL BE PAYABLE ONLY IN, DOLLARS (IN AN AMOUNT EQUAL
TO THE DOLLAR AMOUNT FUNDED BY SUCH LENDER AS PROVIDED ABOVE) AND SHALL NOT BE
DISCHARGED BY PAYING AN AMOUNT IN ANY OTHER CURRENCY.
INTEREST ACCRUED ON SUCH
UNREIMBURSED LC DISBURSEMENT TO AND EXCLUDING THE DATE OF SUCH PAYMENT BY SUCH
LENDER SHALL BE FOR THE ACCOUNT OF THE APPLICABLE ISSUING BANK AND BE PAYABLE IN
THE APPLICABLE ALTERNATE CURRENCY, BUT INTEREST THEREAFTER SHALL ACCRUE ON THE
DOLLAR AMOUNT OWED TO SUCH LENDER AND SHALL BE PAYABLE IN DOLLARS.
(N)
AUTO-EXTENSION LETTERS OF CREDIT.
IF THE BORROWER SO REQUESTS IN RELATION
TO THE ISSUANCE OF A LETTER OF CREDIT, THE ISSUING BANK MAY, IN ITS SOLE
DISCRETION, AGREE TO ISSUE A LETTER OF CREDIT THAT HAS AUTOMATIC EXTENSION
PROVISIONS (EACH, AN "AUTO-EXTENSION LETTER OF CREDIT"); PROVIDED THAT ANY SUCH
AUTO-EXTENSION LETTER OF CREDIT MUST PERMIT THE ISSUING BANK TO PREVENT ANY SUCH
EXTENSION AT LEAST ONCE IN EACH TWELVE-MONTH PERIOD (COMMENCING WITH THE DATE OF
ISSUANCE OF SUCH LETTER OF CREDIT) BY GIVING PRIOR NOTICE TO THE BENEFICIARY
THEREOF NOT LATER THAN A DAY (THE "NON-EXTENSION NOTICE DATE") IN EACH SUCH
TWELVE-MONTH PERIOD TO BE AGREED UPON AT THE TIME SUCH LETTER OF CREDIT IS
ISSUED.
UNLESS OTHERWISE DIRECTED BY THE ISSUING BANK, THE BORROWER SHALL NOT
BE REQUIRED TO MAKE A SPECIFIC REQUEST TO THE ISSUING BANK FOR ANY SUCH
EXTENSION.
ONCE AN AUTO-EXTENSION LETTER OF CREDIT HAS BEEN ISSUED, THE LENDERS
SHALL BE DEEMED TO HAVE AUTHORIZED (BUT MAY NOT REQUIRE) THE ISSUING BANK TO
PERMIT THE EXTENSION OF SUCH LETTER OF CREDIT AT ANY TIME TO AN EXPIRY DATE NOT
LATER THAN THE LETTER OF CREDIT EXPIRATION DATE; PROVIDED, HOWEVER, THAT THE
ISSUING BANK SHALL NOT PERMIT ANY SUCH EXTENSION IF IT HAS RECEIVED NOTICE
(WHICH MAY BE BY TELEPHONE OR IN WRITING) ON OR BEFORE THE DAY THAT IS SEVEN
BUSINESS DAYS BEFORE THE NON-EXTENSION NOTICE DATE (I) FROM THE PAYING AGENT
THAT THE REQUIRED LENDERS HAVE ELECTED NOT TO PERMIT SUCH EXTENSION OR (II) FROM
THE PAYING AGENT, ANY LENDER OR THE BORROWER THAT ONE OR MORE OF THE APPLICABLE
CONDITIONS SPECIFIED IN SECTION 4.02 IS NOT THEN SATISFIED, AND IN EACH SUCH
CASE DIRECTING THE ISSUING BANK NOT TO PERMIT SUCH EXTENSION.
(O)
APPLICABILITY OF ISP AND UCP.
UNLESS OTHERWISE EXPRESSLY AGREED BY THE
ISSUING BANK AND THE BORROWER WHEN A LETTER OF CREDIT IS ISSUED (INCLUDING ANY
SUCH AGREEMENT APPLICABLE TO AN EXISTING LETTER OF CREDIT), (I) THE RULES OF
ISP98 SHALL APPLY TO EACH STANDBY LETTER OF CREDIT, AND (II) THE RULES OF THE
UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS, AS MOST RECENTLY PUBLISHED
BY THE INTERNATIONAL CHAMBER OF COMMERCE AT THE TIME OF ISSUANCE SHALL APPLY TO
EACH COMMERCIAL LETTER OF CREDIT.
SECTION 2.06.
FUNDING OF BORROWINGS.
(A)
EACH