Advances and Notes Sample Clauses
The "Advances and Notes" clause governs the terms under which one party may provide funds to another in the form of advances or promissory notes. It typically outlines the conditions for issuing advances, the repayment schedule, applicable interest rates, and any collateral requirements. For example, it may specify that advances are only available up to a certain limit or that notes must be repaid within a set timeframe. The core function of this clause is to clearly define the financial arrangements between parties, reducing uncertainty and managing the risk associated with lending and borrowing within the agreement.
POPULAR SAMPLE Copied 1 times
Advances and Notes. 2.1 Receivables Advances; Receivables Loan 2.2 Issuance of Note; Rate of Interest; Receipt of Payments
Advances and Notes. Subject to the terms and conditions hereof, each Lender agrees to make available to Borrowers on and after December 31, 2003 (the "Establishment Date") and from time to time prior to the Maturity Date (as defined in subsection 1.8.1 below), various advances (each, an "Advance" and, collectively, "Advances") in a total amount not to exceed such Lender's Loan Commitment (as defined below). Borrowers shall execute and deliver to each Lender a revolving note to evidence the Loan Commitment of that Lender. Each revolving note shall be in the principal amount of the product of $50,000,000 times such Lender's Pro Rata Share (as defined in subsection 9.1.1 below) and shall be in the form of Exhibit 1.1
(a) hereto (each, together with any and all amendments thereto and substitutions therefor, a "Note" and, collectively, the "Notes"). Each Note shall represent the obligation of Borrowers to repay the amount of the applicable Lender's actual Advances, together with interest thereon. All Borrowers shall be jointly and severally liable for all indebtedness under the Notes and all obligations under the Loan Documents.
Advances and Notes