Commitment Fee and Line Fee Sample Clauses
The Commitment Fee and Line Fee clause defines the charges a borrower must pay to a lender for making a credit facility available, regardless of whether the funds are actually drawn. Typically, the commitment fee is calculated as a percentage of the undrawn portion of the loan, while the line fee may apply to the total facility amount or to specific tranches. These fees compensate the lender for reserving funds and maintaining the credit line, ensuring the lender is remunerated for the opportunity cost and administrative burden of keeping the facility available even if the borrower does not utilize the full amount.
Commitment Fee and Line Fee. The Commitment Fee and Line Fee shall be payable at the times and in the manner set forth below:
(a) The Borrowers shall pay to the Administrative Agent, for the account of the Lenders, a commitment fee (the “Commitment Fee”) equal to 0.20% per annum (on the basis of actual days elapsed in a year of 360 days) of the average daily balance of the Unused Commitment for each day commencing on and including the Closing Date and ending on but excluding the Termination Date. The Commitment Fee so accrued in any calendar quarter shall be payable in arrears on the first Business Day of the immediately succeeding calendar quarter, except that all Commitment Fees so accrued as of the Termination Date shall be payable on the Termination Date.
(b) The Administrative Agent shall remit to each Lender a portion (referred to herein as the “Line Fee”) of the Commitment Fee actually received by Administrative Agent under Section 2.13(a) equal to 0.20% per annum (on the basis of actual days elapsed in a year of 360 days) of the average daily balance for each day, commencing on and including the Closing Date and ending on but excluding the Termination Date, of the excess of (i) such Lender’s Commitment over (ii) an amount equal to the sum of (x) such Lender’s Commitment Percentage multiplied by the principal amount of Revolving Loans then outstanding plus (y) such Lender’s Commitment Percentage multiplied by the then Letter of Credit Outstandings; provided, however, that for purposes of calculating the share of the Line Fee due to any Lender which is both the Swingline Lender and a Lender of other Revolving Loans, such Lender’s share shall be equal to the difference between (i) such Lender’s Commitment, and (ii) the sum of (x) such Lender’s Commitment Percentage of the principal amount of all Revolving Loans then outstanding (including the principal amount of Swingline Loans then outstanding), and (y) such Lender’s Commitment Percentage of the then Letter of Credit Outstandings. The Line Fee so accrued in any calendar quarter shall be payable in arrears on the first Business Day of the immediately succeeding calendar quarter, except that all Line Fees so accrued as of the Termination Date shall be payable on the Termination Date. If the Commitment Fee actually paid by the Borrowers to the Administrative Agent is insufficient to pay the Line Fee due the Lenders, the deficiency shall be paid to the Lenders by the Swingline Lender from its own funds (and the Borrowers shall have ...