Indemnity: We undertake to indemnify you against all losses, costs, damages, and demands which you may incur or sustain by reason of your issuing or establishing, or exercising any tight under, this Credit and to provide you with funds on demand with which to meet all payments made by you or by a nominated bank and all drafts drawn on or honored by you or by a nominated bank, together with all interest, commission, charges, disbursements and expenses of whatsoever nature due to or incurred by you and by you and by a nominated bank in relation to the Credit.