Commitment Fee; Arrangement Fee Sample Clauses
The Commitment Fee and Arrangement Fee clause defines the fees that a borrower must pay to a lender in connection with arranging and maintaining a credit facility. The arrangement fee is typically a one-time payment made at the outset of the loan to compensate the lender for structuring and setting up the facility, while the commitment fee is an ongoing charge calculated on the unused portion of the loan commitment, incentivizing the borrower to utilize the facility efficiently. This clause ensures that the lender is compensated for both the administrative work involved in establishing the loan and for reserving funds for the borrower's potential use, thereby allocating costs and clarifying financial obligations.
Commitment Fee; Arrangement Fee. Borrower hereby agrees that any Commitment Fee, Arrangement Fee, or similar charge contractually due is authorized to be paid at time of Closing, or if not paid, may be by Lender out of any Reserve Funds held by Lender for the benefit of Borrower without recourse.
Commitment Fee; Arrangement Fee. Upon the closing of the Loan, Borrower shall pay a Commitment Fee equal to four percent (4%) of the Original Principal Amount to Lender, and an Arrangement Fee equal to one percent (1%) of the Original Principal Amount to Northwind Financial. Borrower hereby agrees that any Commitment Fee, Arrangement Fee, Broker Fee or similar charge contractually due is authorized to be paid at time of Closing, or if not paid, may be by Lender out of any Reserve Funds held by Lender for the benefit of Borrower without recourse.