Acceptance Sub-Facility Clause Samples
The Acceptance Sub-Facility clause establishes a specific component within a broader financing arrangement that allows for the issuance and acceptance of bills of exchange or similar negotiable instruments. In practice, this sub-facility enables a borrower to draw funds by presenting bills that the lender accepts, often for trade finance purposes such as paying suppliers or managing cash flow. By defining the terms and conditions under which these instruments can be issued and accepted, the clause provides a structured mechanism for short-term financing, thereby facilitating smoother commercial transactions and mitigating liquidity challenges.
Acceptance Sub-Facility. The Borrowers may from time to time request the Bank to accept one or more drafts drawn on the Bank for the account of the Borrowers (each an "Acceptance") of up to $5,000,000. At no time, however, shall the total principal balance of all Acceptances outstanding, together with the total face amount of all outstanding Letters of Credit less any partial draws paid by the Bank, exceed the sum of $10,000,000.00 and, together with the total principal balance of all Advances outstanding under the Line of Credit, exceed the Line of Credit.