Accounting for Commitment Fees Clause Samples
The "Accounting for Commitment Fees" clause defines how commitment fees—fees paid to a lender for reserving funds—are recorded and treated in the parties' financial records. Typically, this clause specifies whether such fees are recognized as expenses immediately or amortized over the life of the loan, and may outline the timing and method of payment. Its core function is to ensure both parties have a clear, consistent approach to handling these fees, thereby preventing disputes and ensuring compliance with accounting standards.
Accounting for Commitment Fees. On the first Business Day after each Principal Reconciliation Date following the date of a payment of the commitment fee provided for in the preceding section, Agent will remit to each Lender such Lender's Ratable Share of the commitment fee received by Agent, based on each such Lender's Commitment (via wire transfer, pursuant to wire transfer instructions provided to Agent by Lender in writing from time to time).
Accounting for Commitment Fees. On the first Business Day after the Agent's receipt of a payment of the commitment fee provided for in the preceding section, the Agent will remit to each Lender such Lender's share of the commitment fee received by Agent, based on each such Lender's Unused Commitment (via wire transfer, pursuant to wire transfer instructions provided to the Agent by Lender in writing from time to time).
Accounting for Commitment Fees. In accordance with Section 2.1, Agent will remit promptly to each Lender such Lender’s Pro Rata Share of the commitment fee received by Agent, based on each such Lender’s Commitment (via wire transfer, pursuant to wire transfer instructions provided to Agent by Lender in writing from time to time).