Before drawdown Sample Clauses
The 'Before drawdown' clause sets out the conditions and requirements that must be satisfied before a borrower can access or receive funds under a loan agreement. Typically, this clause details the documentation, approvals, and representations that must be provided or confirmed by the borrower, such as evidence of compliance with covenants, delivery of legal opinions, or proof of insurance. Its core practical function is to ensure that all necessary prerequisites are met to protect the lender’s interests and mitigate risk before any loan funds are disbursed.
Before drawdown. On a Ship being sold or becoming a Total Loss (or suffering damage or being involved in an incident which in the opinion of the Agent may result in such Ship being subsequently determined to be a Total Loss) before the Advance in respect of such Ship is drawn down, the obligation of the Banks to make such Advance available shall immediately cease and the Total Commitment shall be reduced by the amount of such Advance.
Before drawdown. On a Ship becoming a Total Loss (or suffering damage or being involved in an incident which, in the opinion of the Bank may result in such Ship being subsequently determined to be a Total Loss), before the Loan is drawn down, the obligation of the Bank to advance the Loan shall immediately cease and the Commitment shall be reduced to zero.
Before drawdown. On the Newbuilding becoming a Total Loss (or suffering damage or being involved in an incident which in the opinion of the Agent may result in the Newbuilding being subsequently determined to be a Total Loss) before the Newbuilding Advance is drawn down, the obligation of the Banks to advance the Newbuilding Advance shall immediately cease and the Total Commitment shall be reduced by the amount of the Newbuilding Advance.
Before drawdown. On the Vessel becoming (i) a Total Loss or suffering damage or being involved in an incident which in the reasonable opinion of the Bank may result in the Vessel being subsequently determined to be a Total Loss, or (ii) the Vessel being sold before the Commitment has been drawn down, the obligation of the Bank to advance the Commitment or any part thereof shall immediately cease, and all obligations of the Bank under this Agreement with respect to the Commitment shall immediately cease;
Before drawdown. (a) On a New Ship becoming a Total Loss (or suffering damage or being involved in an incident which in the opinion of the Bank may result in such New Ship being subsequently determined to be a Total Loss) or on a New Ship being sold, in each case before the Advance for such New Ship is drawn down, the obligation of the Bank to advance the Advance for such New Ship shall immediately cease and the Commitment shall be reduced by the amount of such Advance.
(b) On a Collateral Ship becoming a Total Loss (or suffering damage or being involved in an incident which in the opinion of the Bank may result in such Collateral Ship being subsequently determined to be a Total Loss) or on a Collateral Ship being sold, in each case before any Advance is drawn down, the obligation of the Bank to advance any Advance shall immediately cease and the Commitment shall be reduced to zero.