Template:GMSLA 2010 5.9: Difference between revisions
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{{gmslaprov|5.9}} '''{{gmslaprov|Substitutions and extensions of Letters of Credit}}''' | {{gmslaprov|5.9}} '''{{gmslaprov|Substitutions and extensions of Letters of Credit}}''' <br> | ||
Where {{gmslaprov|Collateral}} is a {{gmslaprov|Letter of Credit}}, {{gmslaprov|Lender}} may by notice to {{gmslaprov|Borrower}} require that {{gmslaprov|Borrower}}, on the third {{gmslaprov|Business Day}} following the date of delivery of such notice (or by such other time as the {{gmslaprov|Parties}} may agree), substitute {{gmslaprov|Collateral}} consisting of cash or other {{gmslaprov|Collateral}} acceptable to {{gmslaprov|Lender}} for the {{gmslaprov|Letter of Credit}}. [[Prior to]] the expiration of any {{gmslaprov|Letter of Credit}} supporting {{gmslaprov|Borrower}}’s obligations hereunder, {{gmslaprov|Borrower}} shall, no later than 10.30 a.m. UK time on the second {{gmslaprov|Business Day}} prior to the date such {{gmslaprov|Letter of Credit}} expires (or by such other time as the {{gmslaprov|Parties}} may agree), obtain an extension of the expiration of such {{gmslaprov|Letter of Credit}} or replace such {{gmslaprov|Letter of Credit}} by providing {{gmslaprov|Lender}} with a substitute {{gmslaprov|Letter of Credit}} in an amount at least equal to the amount of the {{gmslaprov|Letter of Credit}} for which it is substituted. <br> | Where {{gmslaprov|Collateral}} is a {{gmslaprov|Letter of Credit}}, {{gmslaprov|Lender}} may by notice to {{gmslaprov|Borrower}} require that {{gmslaprov|Borrower}}, on the third {{gmslaprov|Business Day}} following the date of delivery of such notice (or by such other time as the {{gmslaprov|Parties}} may agree), substitute {{gmslaprov|Collateral}} consisting of cash or other {{gmslaprov|Collateral}} acceptable to {{gmslaprov|Lender}} for the {{gmslaprov|Letter of Credit}}. [[Prior to]] the expiration of any {{gmslaprov|Letter of Credit}} supporting {{gmslaprov|Borrower}}’s obligations hereunder, {{gmslaprov|Borrower}} shall, no later than 10.30 a.m. UK time on the second {{gmslaprov|Business Day}} prior to the date such {{gmslaprov|Letter of Credit}} expires (or by such other time as the {{gmslaprov|Parties}} may agree), obtain an extension of the expiration of such {{gmslaprov|Letter of Credit}} or replace such {{gmslaprov|Letter of Credit}} by providing {{gmslaprov|Lender}} with a substitute {{gmslaprov|Letter of Credit}} in an amount at least equal to the amount of the {{gmslaprov|Letter of Credit}} for which it is substituted. <br> | ||
Latest revision as of 16:22, 5 October 2017
5.9 Substitutions and extensions of Letters of Credit
Where Collateral is a Letter of Credit, Lender may by notice to Borrower require that Borrower, on the third Business Day following the date of delivery of such notice (or by such other time as the Parties may agree), substitute Collateral consisting of cash or other Collateral acceptable to Lender for the Letter of Credit. Prior to the expiration of any Letter of Credit supporting Borrower’s obligations hereunder, Borrower shall, no later than 10.30 a.m. UK time on the second Business Day prior to the date such Letter of Credit expires (or by such other time as the Parties may agree), obtain an extension of the expiration of such Letter of Credit or replace such Letter of Credit by providing Lender with a substitute Letter of Credit in an amount at least equal to the amount of the Letter of Credit for which it is substituted.