Credit Application shall specify in form and detail
satisfactory to Royal:
(A)
THE DOCUMENTARY CREDIT TO BE AMENDED;
(B)
THE PROPOSED DATE OF AMENDMENT THEREOF (WHICH
SHALL BE A BUSINESS DAY);
(C)
THE NATURE OF THE PROPOSED AMENDMENT; AND
(D)
SUCH OTHER MATTERS AS ROYAL MAY REQUIRE.
(B)
IF THE BORROWER SO REQUESTS IN ANY
APPLICABLE DOCUMENTARY CREDIT APPLICATION, ROYAL MAY, IN ITS SOLE AND ABSOLUTE
DISCRETION, AGREE TO ISSUE A DOCUMENTARY CREDIT THAT HAS AUTOMATIC RENEWAL
PROVISIONS (EACH, AN "AUTO-RENEWAL DOCUMENTARY CREDIT"); PROVIDED THAT ANY SUCH
AUTO-RENEWAL DOCUMENTARY CREDIT MUST PERMIT ROYAL TO PREVENT ANY SUCH RENEWAL AT
LEAST ONCE IN EACH TWELVE-MONTH PERIOD (COMMENCING WITH THE DATE OF ISSUANCE OR
RENEWAL OF SUCH DOCUMENTARY CREDIT) BY GIVING PRIOR NOTICE TO THE BENEFICIARY
THEREOF NOT LATER THAN A DAY (THE "NONRENEWAL NOTICE DATE") IN EACH SUCH
TWELVE-MONTH PERIOD TO BE AGREED UPON AT THE TIME SUCH DOCUMENTARY CREDIT IS
ISSUED.
UNLESS OTHERWISE DIRECTED BY ROYAL, THE BORROWER SHALL NOT BE REQUIRED
TO MAKE A SPECIFIC REQUEST TO ROYAL FOR ANY SUCH RENEWAL.
ROYAL SHALL NOT
PERMIT ANY SUCH RENEWAL IF:
(1)
ROYAL HAS DETERMINED THAT IT WOULD HAVE NO
OBLIGATION AT SUCH TIME TO ISSUE SUCH DOCUMENTARY CREDIT IN ITS RENEWED FORM
UNDER THE TERMS OF THE AGREEMENT (BY REASON OF THE PROVISIONS OF §3.3, §3.4 OR
OTHERWISE),
(2)
ONE OR MORE OF THE APPLICABLE CONDITIONS
SPECIFIED IN §3.5 IS NOT THEN SATISFIED.
NOTWITHSTANDING ANYTHING TO THE
CONTRARY CONTAINED HEREIN, ROYAL SHALL HAVE NO OBLIGATION TO PERMIT THE RENEWAL
OF ANY AUTO-RENEWAL
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DOCUMENTARY CREDIT AT ANY TIME TO THE EXTENT SUCH NON-RENEWAL IS PERMITTED BY
THE TERMS OF SUCH AUTO-RENEWAL DOCUMENTARY CREDIT.
(C)
PROMPTLY AFTER ITS DELIVERY OF ANY
DOCUMENTARY CREDIT OR ANY AMENDMENT TO A DOCUMENTARY CREDIT TO AN ADVISING BANK
WITH RESPECT THERETO OR TO THE BENEFICIARY THEREOF, ROYAL WILL ALSO DELIVER TO
THE BORROWER A TRUE AND COMPLETE COPY OF SUCH DOCUMENTARY CREDIT OR AMENDMENT.
3.6
DRAWINGS AND REIMBURSEMENTS
(A)
UPON RECEIPT FROM THE BENEFICIARY OF ANY
DOCUMENTARY CREDIT OF ANY NOTICE OF A DRAWING UNDER SUCH DOCUMENTARY CREDIT,
ROYAL SHALL NOTIFY THE BORROWER THEREOF.
NOT LATER THAN 12:00 NOON TORONTO TIME
ON THE DATE OF ANY PAYMENT BY ROYAL UNDER A DOCUMENTARY CREDIT (EACH SUCH DATE,
AN "HONOUR DATE"), THE BORROWER SHALL REIMBURSE ROYAL , IN AN AMOUNT EQUAL TO
THE AMOUNT OF SUCH DRAWING.
AT THE BORROWER'S OPTION, IT MAY IN, LIEU OF
REMITTING THE AMOUNT NECESSARY TO REIMBURSE SUCH DRAWING, SEND WRITTEN
INSTRUCTION TO ROYAL NOT LATER THAN 12:00 NOON TORONTO TIME, DIRECTING ROYAL TO
DEBIT THE RESTRICTED CASH COLLATERAL ACCOUNT IN THE AMOUNT NECESSARY TO
REIMBURSE SUCH DRAWING.
SUCH INSTRUCTION SHALL BE ACCOMPANIED BY A BORROWING
BASE CERTIFICATE SHOWING THAT AFTER GIVING EFFECT TO SUCH REIMBURSEMENT (AND ANY
PERMANENT REDUCTION IN THE AMOUNT OF THE DOCUMENTARY CREDIT EFFECTED BY SUCH
DRAWING), THERE WILL BE NO SHORTFALL IN THE COLLATERAL VALUE OF THE BORROWING
BASE.
(B)
WITH RESPECT TO ANY AMOUNT NOT REIMBURSED TO
ROYAL PURSUANT TO (A), THE BORROWER SHALL