Common use of Borrowing Limit Clause in Contracts

Borrowing Limit. 1. The borrowing limit of Transactions shall be the amount approved and notified by the Bank. For the avoidance of doubt, these Terms and Conditions shall also apply to cases where the customer makes a borrowing beyond the borrowing limit with the Bank’s confirmation that such borrowing is inevitable. 2. Notwithstanding the immediately preceding paragraph, the Bank may change the borrowing limit. In such case, the Bank shall notify the customer of such change according to the Bank’s prescribed method. 3. If the customer falls under any one of the following items, the Bank may reduce the borrowing limit (even to zero (0) Yen) without being required to give any notice to the customer: (1) the customer breaches these Terms and Conditions or falls into default; or (2) it is deemed that a reduction of the borrowing limit is required based on the outcome of any examination by the Bank and the guarantee company concerning the customer’s credit status. 4. If, after the borrowing limit is reduced pursuant to the immediately preceding paragraph, a recovery of the reduced borrowing limit is deemed to be appropriate based on the outcome of any examination by the Bank and the guarantee company concerning the customer’s credit status, the Bank may increase the borrowing limit, but only up to the original pre-reduction borrowing limit, without being required to give any notice to the customer.