Advances by the Agent Clause Samples
The "Advances by the Agent" clause defines the authority and process by which an agent may provide funds or make payments on behalf of the borrower or other parties under a financing agreement. Typically, this clause outlines the circumstances under which the agent can advance funds, such as covering fees, interest, or other obligations when the borrower fails to do so. For example, if a borrower misses a required payment, the agent may step in to pay on their behalf and then seek reimbursement. The core function of this clause is to ensure continuity of payments and obligations under the agreement, thereby protecting the interests of the lenders and maintaining the smooth operation of the financing arrangement.
Advances by the Agent. The Agent, on behalf of the Lenders, shall disburse all loans and advances to the Funds Administrator and shall handle all collections of Collateral and repayment of all Obligations. It is understood that for purposes of advances to the Funds Administrator and for purposes of this Section 3.1, the Agent will be using the funds of the Agent, and pending settlement, all interest accruing on such advances shall be payable to the Agent.
Advances by the Agent. Upon the occurrence and during the continuance of an Event of Default (as defined below), Agent may, at its sole option and in its sole discretion, perform the covenants and agreements of the Pledgors set forth herein, and in so doing, may expend such sums as Agent may reasonably deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential Lien, expenditures made in defending against any adverse claim and all other expenditures which the Creditor Parties may make for the protection of the Collateral or which it may be compelled to make by operation of law. All such sums and amounts so expended shall be repayable by the applicable Pledgor(s) promptly upon timely notice thereof and demand therefor, shall constitute additional Secured Obligations and shall bear interest from the date said amounts are expended at the Contract Rate for the Notes. No such performance of any covenant or agreement by the Creditor Parties on behalf of any Pledgor, and no such advance or expenditure therefor, shall relieve any Pledgor of any default under the terms of this Agreement or the other Documents. The Creditor Parties may make any payment hereby authorized in accordance with any ▇▇▇▇, statement or estimate procured from the appropriate public office or holder of the claim to be discharged without inquiry into the accuracy of such ▇▇▇▇, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is being contested in good faith by a Pledgor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP.