THEN HELD AS
PARTICIPANT CASH COLLATERALIZATION THAT THE AGENT BANK DETERMINES TO BE FREE AND
CLEAR OF ANY SUCH RIGHT AND CLAIM. UPON THE DRAWING OF ANY LETTER OF CREDIT FOR
WHICH FUNDS ARE ON DEPOSIT AS PARTICIPANT CASH COLLATERALIZATION OR IN THE CASH
COLLATERAL ACCOUNT, SUCH FUNDS SHALL BE APPLIED TO REIMBURSE THE L/C ISSUER.
(B)
EACH LETTER OF CREDIT SHALL BE ISSUED BY THE L/C ISSUER ON THE
BANKING BUSINESS DAY SPECIFIED IN THE BORROWER'S APPLICATION THEREFOR.
EACH
REQUEST FOR A LETTER OF CREDIT AND EACH LETTER OF CREDIT SHALL BE SUBJECT TO THE
UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS, INTERNATIONAL CHAMBER OF
COMMERCE 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
52
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.
(C)
UPON PRESENTATION OF A DRAFT DRAWN UNDER ANY LETTER OF CREDIT, L/C
ISSUER SHALL PROMPTLY NOTIFY THE AGENT BANK AND BORROWER 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 BORROWER HAS MADE OTHER
ARRANGEMENTS ACCEPTABLE TO THE L/C ISSUER TO PAY THE AMOUNT OF SUCH DRAFT IN
FULL), BORROWER SHALL ADVANCE TO L/C ISSUER THE AMOUNT OF SUCH DRAFT FROM
BORROWER'S 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 EVENT BORROWER FAILS TO ADVANCE
TO L/C ISSUER THE AMOUNT OF SUCH DRAFT FROM BORROWER'S 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 BORROWER AND WITHOUT REGARD TO ANY OTHER CONDITIONS PRECEDENT FOR
THE MAKING OF BORROWINGS UNDER THE CREDIT FACILITY, REQUEST A BORROWING TO BE
MADE AND LENDERS