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Letter of Credit Fees
Letter of Credit Fees contract clause examples

On the terms and subject to the conditions set forth herein, up to, but not in excess of $5,000,000.00 of the Revolving Commitment may be used by Borrower, in addition to the making of Revolving Loans hereunder, for the issuance, prior to the Commitment Expiry Date, by # the LCL/C Issuer, of letters of credit, guarantees or other agreements or arrangements (each, a “Support Agreement”) to induce an LCL/C Issuer to issue or increase the amount of, or extend the expiry date of, one or more Letters of Credit and # an LCL/C Issuer, of one or more Lender Letters of Credit, so long as, in each case:

On the terms and subject to the conditions set forth herein, up to, but not in excess of ten percent (10%) of the Borrowing Base, may be used by Borrower, in addition to the making of Revolving Loans hereunder, for the issuance, prior to the Commitment Expiry Date, by # the L/C Issuer, of letters of credit, guarantees or other agreements or arrangements (each, a “Support Agreement”) to induce an L/C Issuer to issue or increase the amount of, or extend the expiry date of, one or more Letters of Credit and # an L/C Issuer, of one or more Lender Letters of Credit, so long as, in each case:

Letters of Credit. Subject to the terms and conditions set forth herein, during the Revolving Commitment Period, the Issuing Bank agrees, in reliance on the agreements of the Lenders set forth herein, to issue and extend Letters of Credit in Dollars for the account of the Borrower; provided that # the Outstanding Amount of Letter of Credit Obligations shall not exceed FIVE MILLION DOLLARS ($5,000,000) (the “Letter of Credit Sublimit”), # the aggregate Outstanding Amount of Revolving Obligations shall not exceed the lesser of # the Aggregate Revolving Commitments and # the Borrowing Base, and # each Lender’s share of Revolving Obligations shall not exceed the amount of its Revolving Commitment. Letters of Credit shall # be denominated in Dollars, # be in a minimum stated amount of $50,000 (or such lesser amount as the Issuing Bank may agree in its reasonable discretion), # not be issued for a tenor of more than one year from the date of issuance, amendment or extension, # not have an expiration date extending beyond the date ten (10) days prior to the Revolving Commitment Termination Date (the “Letter of Credit Outside Expiration Date”). The

. Subject to and in accordance with the terms and conditions contained herein and in the other Loan Documents, Borrower may utilize up to FIFTY THOUSAND DOLLARS ($50,000.00) of the Revolving Loan Commitment to issue Letters of Credit from time to time. For the avoidance of any doubt, all Letter of Credit Obligations, including any amounts advanced hereunder for the issuance of Letters of Credit, shall constitute part of the Revolving Exposure for purposes of reducing Borrowing Availability. Issuance of Letters of Credit will be subject to the terms of supplemental documents executed by Borrower in favor of Lender in connection with the issuance of each Letter of Credit.

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