Advances and Letters of Credit Clause Samples
The "Advances and Letters of Credit" clause defines the terms under which a party may receive funds in advance or utilize letters of credit as a form of payment or security within a contractual relationship. Typically, this clause outlines the conditions for requesting advances, the procedures for issuing and drawing on letters of credit, and any associated obligations or limitations, such as repayment terms or required documentation. By establishing clear rules for these financial instruments, the clause facilitates smooth financial transactions and mitigates the risk of non-payment or cash flow issues between the parties.
Advances and Letters of Credit. (a) Subject to the provisions of this Agreement, including without limitation the satisfaction of the conditions described in Article III, Lender agrees to establish a Revolving Loan Facility pursuant to which Lender may, in its sole discretion upon request of Borrower, make and incur Credit Accommodations in support of Export Orders, provided the Credit Accommodation Amount at any time shall not exceed the lesser of (i) the Maximum Amount, and (ii) the Export-Related Borrowing Base. All Letters of Credit issued shall be in Dollars and all Disbursements shall be made in Dollars.
(b) Lender may agree to make advances directly to Borrower or for Borrower's account during the Credit Period, it being expressly agreed that Lender has no commitment to do so. Borrower shall request each advance under the Loan by delivering to Lender a written request therefore, an Export-Related Borrowing Base Certificate, a copy of the Export Order(s) against which Borrower is requesting an advance, and such other information and documentation as Lender may require, in accordance with Section 6.10. Upon receipt of the above described information and documents by Lender, Lender shall make such advance within five (5) Business Days following Lender's determination that all conditions to the making of such advance have been satisfied. Each advance shall be conclusively deemed to have been made at the request of and for the benefit of Borrower (a) when credited to any deposit account of Borrower maintained with Lender, or (b) when advanced in accordance with the instructions of an authorized Person. Lender, at its option, may set a cutoff time, after which all requests for advances under the Loan will be treated as having been requested on the next succeeding Business Day.
(c) Lender may agree to issue Letters of Credit on behalf of Borrower or for Borrower's account from time to time during the Credit Period, it being expressly agreed that Lender has no commitment to do so. Standby Letters of Credit may be issued for Borrower's account for use as a performance bond, which Standby Letters of Credit can be drawn upon by Buyers only if Borrower fails to perform its obligations with respect to the relevant Export Order. Each Disbursement to fund a drawing under a Standby Letter of Credit shall conclusively be deemed to have been made when advanced in accordance with a draw request or instructions of an authorized Person. Each Letter of Credit will be in form and substance satisfactory ...
Advances and Letters of Credit. The proceeds of the Advances and the Letters of Credit will be used by the Borrower (i) to refinance existing Indebtedness, (ii) pay fees and expenses incurred in connection with the transactions contemplated hereby, and (iii) for working capital and general corporate purposes of the Borrower and its Subsidiaries.
Advances and Letters of Credit. In no event shall the Bank have any obligation to make an Advance pursuant to the Loan Commitment or issue a Letter of Credit hereunder if there exists a Default Condition or an Event of Default.
Advances and Letters of Credit. Subject to and upon the provisions of this Agreement and relying upon the representations and warranties herein set forth, the Lender agrees at any time and from time to time to make Advances to the Borrower and issue Letters of Credit for the account of the Borrower from the date hereof until the earlier of the Revolving Credit Expiration Date or the date on which this Revolving Credit Facility is terminated pursuant to Section 7 hereof, in an aggregate principal amount at any time outstanding not to exceed the Revolving Credit Amount. In no event shall the Lender be obligated to make an Advance hereunder if a Default shall have occurred and be continuing. Unless sooner terminated pursuant to other provisions of this Agreement, this Revolving Credit Facility and the obligation of the Lender to make Advances hereunder shall automatically terminate on the Revolving Credit Expiration Date without further action by, or notice of any kind from, the Lender. Within the limitations set forth herein and subject to the provisions of this Agreement, the Borrower may borrow, repay and reborrow under this Revolving Credit Facility. The fact that there may be no Advances or Letters of Credit outstanding at any particular time shall not affect the continuing validity of this Agreement.
Advances and Letters of Credit. 32 2.1 Advances-General..............................................................32 2.2 Alternate Base Rate Advances..................................................33 2.3 Eurodollar Rate Advances......................................................34 2.4 Conversion and Continuation of Advances.......................................34 (a) Optional Conversion...........................................................34 (b) Certain Mandatory Conversions.................................................35 (c) Continuations.................................................................35 2.5
Advances and Letters of Credit. 3 2.1. Revolving Credit Advances and Borrowings. 3 2.2. Prepayments/Commitment Reductions. 5
Advances and Letters of Credit. Not less than three Business Days before an Advance is to be made or a Letter of Credit is to be issued, the Agent shall notify each Bank of the proposed Euro Amount of the relevant Advance or Letter of Credit, its proposed Term, whether or not such Advance or Letter of Credit is to be denominated in an Optional Currency (and, if so, the amount of such Advance or Letter of Credit in the relevant Optional Currency) and the aggregate principal amount of the relevant Advance or Letter of Credit allocated to such Bank pursuant to this Agreement and, in relation to a Letter of Credit, the name of the proposed beneficiary.
Advances and Letters of Credit. The Bank agrees, on the terms and conditions set forth in this Agreement, to make Advances to the Borrower and to issue Letters of Credit for the account of the Borrower from time-to-time on any Business Day during the period from the date of this Agreement until the Maturity Date, provided that (i) no Advance shall be made and no Letter of Credit shall be issued, amended, or extended if, after giving effect thereto, the Aggregate Exposure would exceed the lesser of the Commitment and the Available Amount, and (ii) each Advance shall be in an aggregate principal amount not less than $1,000,000 and in integral multiples thereof (except with respect to Base Rate Advances for the purpose of repaying Reimbursement Obligations). Within the limits set forth above, the Borrower may from time-to-time borrow, prepay pursuant to Section 2.07 and reborrow under this Section 2.01.
Advances and Letters of Credit. 2 2.1. Revolving Credit Advances and Borrowings ......................................................... 2 2.2. Prepayments/Commitment Termination ................................................................. 3 2.3. [Intentionally Omitted.] .......................................................................................... 5 2.4. Interest and Applicable Margins; Fees ................................................................... 5 2.5.
Advances and Letters of Credit. 46 2.1 Revolving Credit Advances and Borrowings 46 2.2 Prepayments/Commitment Termination 48 2.3 Swing Line Advances 50 2.4 Interest and Applicable Margin; Fees 52