Advances Notes and Prepayments Clause Samples

The "Advances, Notes and Prepayments" clause governs the procedures and terms under which a borrower may receive funds in advance, issue promissory notes, or make early payments on a loan. It typically outlines how advances are requested and disbursed, the documentation required (such as notes evidencing the debt), and the conditions under which prepayments can be made, including any penalties or restrictions. This clause ensures both parties understand the mechanics of borrowing and repaying funds outside the standard payment schedule, thereby providing flexibility for the borrower while protecting the lender’s interests.