Competitive Borrowing Clause Samples
The Competitive Borrowing clause allows a borrower to seek loan funds from multiple lenders simultaneously, often through a bidding or auction process to secure the most favorable terms. In practice, this means the borrower can request competitive bids for interest rates and loan amounts, and then select the best offer from participating lenders. This clause is designed to ensure the borrower obtains optimal financing terms by leveraging competition among lenders, ultimately reducing borrowing costs and increasing flexibility.
Competitive Borrowing. For purposes of determining the available Commitment of the Lenders at any time, each outstanding Competitive Borrowing shall be deemed to have utilized the Commitment (including those Lenders which shall not have made Loans as part of such Competitive Borrowing) in accordance with each Lender's Pro Rata Percentage of the Commitment. Each Lender agrees that in computing such Lender's portion of any Borrowing to be made hereunder, the Administrative Agent may, in its discretion, round each Lender's percentage of such Borrowing to the next higher or lower whole dollar amount.
Competitive Borrowing. A Competitive Bid submitted by a Lender pursuant to this paragraph (b) shall be irrevocable.