364-Day Commitment Clause Samples

The 364-Day Commitment clause establishes a lender's obligation to provide credit or maintain a loan facility for a period of 364 days. In practice, this means the borrower can access funds or draw on the credit line during this period, after which the commitment typically expires unless renewed or extended. This structure is commonly used in revolving credit agreements to provide short-term financing while allowing lenders and borrowers to regularly reassess terms. The core function of this clause is to offer flexible, short-term funding while limiting the lender's long-term exposure and commitment.