Commitment Fee on Revolving Commitments Sample Clauses
The Commitment Fee on Revolving Commitments clause requires the borrower to pay a fee to the lender based on the unused portion of a revolving credit facility. Typically, this fee is calculated as a percentage of the undrawn commitment and is paid periodically, such as quarterly or monthly, regardless of whether the borrower actually draws on the available funds. The core function of this clause is to compensate the lender for making funds available and to incentivize the borrower to utilize the facility efficiently, while also covering the lender's opportunity cost for reserving capital.
Commitment Fee on Revolving Commitments. The Borrower shall pay to the Administrative Agent, for the account of each Lender in accordance with its Applicable Percentage, a commitment fee equal to the product of (i) the Applicable Rate times (ii) the actual daily amount by which the Aggregate Revolving Commitments exceed the sum of (y) the Outstanding Amount of Revolving Loans and (z) the Outstanding Amount of L/C Obligations, subject to adjustment as provided in Section 2.15. For the avoidance of doubt, the Outstanding Amount of Swing Line Loans shall not be counted towards or considered usage of the Aggregate Revolving Commitments for purposes of determining the commitment fee. The commitment fee shall accrue at all times during the Availability Period, including at any time during which one or more of the conditions in Article V is not met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Closing Date, and on the last day of the Availability Period. The commitment fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.