PUBLICATION NEW 1994 REVISION NO. 500, OR ANY
SUCCESSOR PUBLICATION THEN IN EFFECT.
EACH STANDBY LETTER OF CREDIT WILL BE
ISSUED FOR A TERM NOT GREATER THAN ONE (1) YEAR AND SHALL NOT INCLUDE ANY
PROVISION FOR AUTOMATIC RENEWAL.
EACH COMMERCIAL LETTER OF CREDIT WILL BE
ISSUED FOR A TERM NOT GREATER THAN ONE HUNDRED EIGHTY (180) CALENDAR DAYS.
IN
NO EVENT SHALL ANY LETTER OF CREDIT HAVE A STATED EXPIRY DATE LATER THAN THIRTY
(30) DAYS PRIOR TO THE MATURITY DATE.
PROMPTLY AFTER RECEIPT OF EACH REQUEST
FOR THE ISSUANCE OF A LETTER OF CREDIT AND IMMEDIATELY PRIOR TO THE ISSUANCE
THEREOF, L/C ISSUER SHALL OBTAIN TELEPHONIC VERIFICATION FROM AGENT BANK THAT
THE AMOUNT OF SUCH REQUEST DOES NOT EXCEED THE THEN AVAILABLE BORROWINGS.
THE
L/C ISSUER SHALL PROMPTLY NOTIFY THE AGENT BANK OF THE AGGREGATE L/C EXPOSURE OF
OUTSTANDING LETTERS OF CREDIT EACH TIME THERE IS A CHANGE THEREIN.
B.
UPON PRESENTATION OF A DRAFT DRAWN UNDER
ANY LETTER OF CREDIT, L/C ISSUER SHALL PROMPTLY NOTIFY THE AGENT BANK AND
BORROWERS OF THE AMOUNT UNDER SUCH DRAFT AND THE DATE UPON WHICH SUCH DRAFT IS
TO BE FUNDED.
ON OR BEFORE TWO (2) BANKING BUSINESS DAYS FOLLOWING SUCH NOTICE
(UNLESS BORROWERS HAVE MADE OTHER ARRANGEMENTS ACCEPTABLE TO THE L/C ISSUER TO
PAY THE AMOUNT OF SUCH DRAFT IN FULL), BORROWERS SHALL ADVANCE TO L/C ISSUER THE
AMOUNT OF SUCH DRAFT FROM BORROWERS' AVAILABLE FUNDS OR SHALL REQUEST A
BORROWING UNDER THE CREDIT FACILITY IN AN AMOUNT SUFFICIENT TO PAY THE AMOUNT OF
SUCH DRAFT IN FULL.
THE AGENT BANK, UPON RECEIPT OF SUCH FUNDS FROM THE
LENDERS, SHALL AUTOMATICALLY PROVIDE SUCH AMOUNT TO THE L/C ISSUER FOR PAYMENT
OF THE AMOUNT OF SUCH DRAFT AND THE BALANCE OF THE BORROWING SHALL BE DEPOSITED
IN IMMEDIATELY AVAILABLE FUNDS TO THE DESIGNATED DEPOSIT ACCOUNT.
IN THE
65
EVENT BORROWERS FAIL TO ADVANCE TO L/C ISSUER THE AMOUNT OF SUCH DRAFT FROM
BORROWERS' AVAILABLE FUNDS OR TO REQUEST A BORROWING WITHIN TWO (2) BANKING
BUSINESS DAYS FROM RECEIPT OF THE NOTICE AS SPECIFIED ABOVE, ON THE THIRD (3RD)
BANKING BUSINESS DAY FOLLOWING AGENT BANK'S RECEIPT OF SUCH NOTICE, AGENT BANK
SHALL, WITHOUT NOTICE TO OR CONSENT OF THE BORROWERS AND WITHOUT REGARD TO ANY
OTHER CONDITIONS PRECEDENT FOR THE MAKING OF BORROWINGS UNDER THE CREDIT
FACILITY, CAUSE A BORROWING TO BE MADE AND FUNDED BY THE LENDERS UNDER THE
CREDIT FACILITY AND LENDERS AGREE TO FUND THEIR RESPECTIVE PRO RATA SHARE OF
SUCH BORROWING IN THE AMOUNT NECESSARY TO PAY THE AMOUNT OF SUCH DRAFT IN FULL.
UPON THE OCCURRENCE OF ANY EVENT OF DEFAULT, L/C ISSUER SHALL, WITHOUT NOTICE OR
FURTHER AUTHORIZATION OR CONSENT OF BORROWERS WHATSOEVER, BE AUTHORIZED TO
IMMEDIATELY CAUSE THE CASH COLLATERAL ACCOUNT TO BE ESTABLISHED AND FUNDED BY
LENDERS WITH A BORROWING ADVANCED TO AGENT BANK EQUAL TO THE AGGREGATE AMOUNT OF
THE L/C EXPOSURE THEN OUTSTANDING.
ALL AMOUNTS HELD BY L/C ISSUER IN THE CASH
COLLATERAL ACCOUNT SHALL BE HELD AS SECURITY FOR THE