Commitment Charges Clause Samples
The Commitment Charges clause defines the fees that a borrower must pay to a lender for the unused portion of a loan facility that has been committed but not yet drawn. Typically, these charges are calculated as a percentage of the undrawn amount and are paid periodically, such as quarterly or annually, to compensate the lender for reserving funds. This clause ensures that the lender is compensated for making credit available, even if the borrower does not utilize the full amount, thereby addressing the risk and opportunity cost associated with holding funds in reserve.
Commitment Charges. No commitment charges shall be payable in the event of non-drawl of the loan as per the draw down schedule agreed to above in Para-8 above.
Commitment Charges. The Borrower shall pay to Bank a commitment charge at the rate of 1% per annum or as per the rate of the Bank in that behalf as in force from time to time on the principal amount of the loan or any part thereof, as the case may be, which shall not have been drawn and shall not have been cancelled by Bank.
Commitment Charges. The Borrower shall pay to the Lender a Commitment charge per annum at the rate as prescribed by the Lender from time to time on the principal amount of the Loan or any part thereof as the case may be, which shall not have been drawn and shall not have been cancelled by the Lender, as per the prevailing rules of the Lender from time to time. Commitment charges and the processing fees, once paid, will be non-refundable.
Commitment Charges. The Borrower shall pay to the Bank a one time Commitment Charge at the rate mentioned in the Item No VIII of the Schedule-A on the unutilized sanctioned amount of the Loan. Such payment shall be made forthwith upon being called upon by the Bank.
Commitment Charges. (wherever applicable)
a) when the amount outstanding under any Individual Facility is lower than the Individual Facility Limit;
b) on the differential amount between the Individual Facility Limit for that Individual Facility and the amount outstanding under that Individual Facility; and
c) at such rates as are or as may be prescribed in the Facility Letter/ Facility Letter for the Individual Facility or the Schedule of charges or as may be prescribed by the Bank otherwise.
Commitment Charges. The Borrower shall be liable to pay to the Bank Commitment Charges for non-utilization of the Facilities as follows:
(a) when the amount outstanding under any Individual Facilities is lower than the limit granted for that Individual Facility;
(b) on the differential amount between the Individual Facilities Sanction Limit for that Individual Facilities and the amount outstanding under that Individual Facility; and
(c) at such rates as are or as may be prescribed in the Facility Sanction Letter.
Commitment Charges. Without prejudice to the Bank’s right to terminate the Facility/ies or any part thereof, if the Borrower for any reason whatsoever, could not utilize any Facility or accounts remain in- operative for a period as decided by the Bank from time to time, then the Borrower shall be liable to pay commitment charges or such other charges as mentioned in the Sanction Letters/Facility Documents from time to time.
Commitment Charges. Commissions . . . . . . . . . . . . . . . . . . . . .