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This excerpt taken from the FL 8-K filed May 21, 2008. Payments by Banks with Respect to Letters of Credit. (1) If the Borrower fails to reimburse any LC Agent as and when required by subsection (i) above for all or any portion of any amount drawn under a Letter of Credit, the Administrative Agent shall promptly notify each Bank of such unreimbursed amount and request that each Bank reimburse such LC Agent for such Bank’s Pro Rata Share thereof. Upon receiving such notice from the Administrative Agent, each Bank shall make available to the Administrative Agent, for the account of such LC Agent at its address referred to in Section 9.01, an amount equal to such Bank’s Pro Rata Share of such unreimbursed amount as set forth in such notice, in Federal or other funds immediately available to such LC Agent, by 3:00 P.M.
(New York City time) on the Domestic Business Day following such Bank’s receipt of such notice from the Administrative Agent, together with interest on such amount for each day from and including the date of such drawing to but excluding the day payment is due from such Bank at the Federal Funds Rate for such day. Upon payment in full thereof, such Bank shall be subrogated to the rights of such LC Agent against the Borrower to the extent of such Bank’s Pro Rata Share of the related Reimbursement Obligation (including interest accrued thereon). Nothing in this subsection (j) shall affect any rights any Bank may have
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against any LC Agent for any action or omission for which such LC Agent is not indemnified under subsection (n) of this Section. (2) If any Bank fails to pay any amount required to be paid by it pursuant to clause (1) of this subsection (j) on the date on which such payment is due, interest shall accrue on such Bank’s obligation to make such payment, for each day from and including the date such payment became due to but excluding the date such Bank makes such payment, whether before or after judgment, at a rate per annum equal to the Federal Funds Rate for such day. Any payment made by any Bank after 3:00 P.M. (New York City time) on any Domestic Business Day shall be deemed for purposes of the preceding sentence to have been made on the next succeeding Domestic Business Day. (3) If the Borrower shall reimburse any LC Agent for any drawing with respect to which any Bank shall have made funds available to such LC Agent in accordance with clause (1) of this subsection (j), such LC Agent shall promptly upon receipt of such reimbursement distribute to the Administrative Agent for the account of such Bank its Pro Rata Share thereof, including interest, to the extent received by such LC Agent. (k) |
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