FairPoint Communications 2004 Annual Report Download - page 224

governmental authority with jurisdiction over such Letter of Credit Issuer shall prohibit, or request that such Letter of Credit Issuer refrain from, the
issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuing Lender with respect to such Letter of
Credit any restriction or reserve or capital requirement (for which such Letter of Credit Issuer is not otherwise compensated hereunder) not in effect
with respect to such Letter of Credit Issuer on the Effective Date, or any unreimbursed loss, cost or expense which was not applicable or in effect
with respect to such Letter of Credit Issuer as of the date hereof and which such Letter of Credit Issuer in good faith deems material to it; or
(y) such Letter of Credit Issuer shall have received from the Borrower, any other Credit Party or the Required Lenders prior to the
issuance of such Letter of Credit notice of the type described in the second sentence of Section 1A.03(c).
(c) Notwithstanding the foregoing, in the event a Lender Default exists, the respective Letter of Credit Issuer shall not be required to
issue any Letter of Credit unless such Letter of Credit Issuer has entered into arrangements satisfactory to it and the Borrower (“ Section 1A.01(c)
Arrangements”) to eliminate such Letter of Credit Issuer’s risk with respect to the participation in Letters of Credit of the Defaulting Lender or Lenders, which
may include requiring that the Borrower cash collateralize such Defaulting Lender’s or Lenders’ Percentage of the Letter of Credit Outstandings.
(d) Annex IX hereto contains a description of certain letters of credit issued pursuant to the Existing Credit Agreement and
outstanding on the Initial Borrowing Date. Each such letter of credit, including any extension thereof (each, as amended from time to time in accordance with
the terms hereof and thereof, an “Existing Letter of Credit”) shall constitute a “Letter of Credit” for all purposes of this Agreement, issued, for purposes of
Sections 1A.04(a) and 1A.05, on the Initial Borrowing Date.
1A.02 Minimum Stated Amount. The initial Stated Amount of each Letter of Credit shall be not less than $100,000 or such lesser amount
as is acceptable to the respective Letter of Credit Issuer.
1A.03 Letter of Credit Requests; Notices of Issuance . (a) Whenever it desires that a Letter of Credit be issued, the Borrower shall give the
Administrative Agent and the respective Letter of Credit Issuer written notice (which may include by way of facsimile transmission) in the form of Exhibit A-2
hereto prior to 1:00 P.M. (New York time) at least three Business Days (or such shorter period as may be acceptable to such Letter of Credit Issuer in any given
case) prior to the proposed date of issuance (which shall be a Business Day) (each, a “ Letter of Credit Request”), which Letter of Credit Request shall include
any documents that such Letter of Credit Issuer customarily requires in connection therewith.
(b) Each Letter of Credit Issuer shall, promptly after the issuance of, or amendment to, a Letter of Credit, give the Administrative
Agent and the Borrower written notice of such issuance or amendment, as the case may be, and such notice shall be accompanied by a copy of such Letter of
Credit or such amendment, as the case may be. Promptly upon receipt of such notice, the Administrative Agent shall notify each Participant, in writing, of
such issuance
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