A standard template for credit facility agreements contains clauses describing who accepts the loan and for the purposes for which they take out the loan. Some of the clauses of the agreement are (a) exposure. (i) Each issuer of LC hereby agrees: under the conditions set out in this Agreement, to issue custody and trading credits denominated exclusively in dollars (respectively the existing LCs, a “Facility LC”), to renew, extend, increase, reduce or modify any other facility (“modification” and “modification” of such action) and to comply with the drawings under the Facilities, from time to time during the availability period at the request of the borrower, provided that LC is issued or modified or used immediately after each such credit facility; (x) the total amount of LC`s outstanding commitments does not exceed $100,000,000, (y) a lender`s revolving credit risk must not exceed such a lender`s commitment, and (z) the sum of all lenders` revolving credit commitments may not exceed the sum of the commitments. Any request by the borrower to create or modify an LC facility shall be deemed to be a guarantee by the borrower that the LC facility or the requested modification or subscription complies with the conditions set out in the sentence above. . . .

Posted Monday, October 4th, 2021 at 10:58 pm
Filed Under Category: Uncategorized
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