Advances Payment and Interest Clause Samples
The "Advances, Payment and Interest" clause defines the terms under which funds are advanced, payments are made, and interest is charged or accrued in a contractual relationship. Typically, this clause outlines the schedule and method for disbursing advances, the timing and manner of repayment, and the applicable interest rates on outstanding amounts. For example, it may specify that advances are provided upon request, payments are due monthly, and interest accrues on late payments at a specified rate. The core function of this clause is to establish clear financial procedures and obligations, thereby reducing the risk of disputes over payment terms and ensuring both parties understand their financial responsibilities.
Advances Payment and Interest. 2.1 The Revolving Facility
(a) Subject to the provisions of this Agreement, Lender shall continue the Existing Advances and make Advances to Borrower under the Revolving Facility from time to time during the Term, provided that, notwithstanding any other provision of this Agreement, the aggregate amount of all Advances at any one time outstanding under the Revolving Facility shall not exceed either of (a) the Facility Cap, or (b) the Availability. The Revolving Facility is a revolving credit facility, which may be drawn, repaid and redrawn, from time to time as permitted under this Agreement. Any determination as to whether there is Availability for Advances shall be made by Lender in its sole discretion and, absent demonstrable error, is final and binding upon Borrower. Unless otherwise permitted by Lender, each Advance shall be in an amount of at least $1,000. Subject to the provisions of this Agreement, Borrower may request Advances under the Revolving Facility up to and including the value, in U.S. Dollars, of the sum of (i) Eighty-Five percent (85%) of the Borrowing Base for Eligible Billed Receivables, (ii) Sixty percent (60%) of the Borrowing Base for Eligible Unbilled Receivables, and (iii) as determined by Lender in its sole discretion following the completion of the Inventory Field Examination, either (a) Fifty percent (50%) of the Borrowing Base for Eligible Finished Goods Inventory valued at the lower of cost basis or market value or (b) Eighty-Five percent (85%) of the Borrowing Base for Eligible Inventory valued at orderly liquidation value, minus, the US Bio Reserve and, if applicable, any other amounts adjusted or reserved pursuant to this Agreement (such calculated amount being referred to herein as the “Availability”); provided, however, that at no time shall more than Four Hundred Thousand Dollars ($400,000) of the Availability be comprised of Eligible Inventory. Advances under the Revolving Facility automatically shall be made for the payment of interest on the Advances and the Term Loan Draws and other Obligations on the date when due to the extent available and as provided for herein. The proceeds of Advances under the Revolving Facility shall be used by Borrower (i) as a provider of health care services, (ii) as a wholesaler, retailer and provider of medical supplies and services, (iii) for the generation of receivables/inventory, (iv) for the refinancing of existing indebtedness, (v) for payments to Lender hereunder and (vi) for any...
Advances Payment and Interest. 2.1 The Revolving Facility
Advances Payment and Interest. The Revolving Facility 2 2.2 The Revolving Notes; Maturity 2
Advances Payment and Interest. 2.1 THE TERM LOAN; LETTERS OF CREDIT
(a) Subject to the terms and conditions set forth in this Agreement, Lender agrees to loan to Borrower the Maximum Loan Amount in the form of an initial draw of $12,586,708 (the "INITIAL DRAW"), which Initial Draw shall be comprised of the amount necessary to satisfy Borrower's existing senior indebtedness to Bank of America, N.A. and to fund the Letters of Credit and additional draws thereafter ("ADDITIONAL DRAWS"), subject to the conditions set forth herein, which may be drawn down incrementally from time to time in a minimum amount of $1,000,000, and in increments of $100,000 solely for the purposes of funding new letters of credit and the refunding of existing letters of credit or for start-up costs including working capital related to new contracts that have been signed by Borrower and its new clients. The Term Loan is not a revolving credit facility, and any repayments of principal shall be applied to permanently reduce the Term Loan, provided that any amounts which are borrowed to fund, Letters of Credit that are thereafter repaid may be re-borrowed for the purposes permitted under this Agreement.
(b) Subject to the terms and conditions hereof, Lender agrees to establish letters of credit to replace those letters of credit currently in place in the aggregate face amount of $3,140,000, as required by Borrower's current customers ("Letters of Credit").
Advances Payment and Interest. 1 2.1. The Revolving Facilities.............................
Advances Payment and Interest