Conditions to Initial Extension of Credit to Each Additional Borrower Clause Samples

This clause sets out the specific requirements that must be met before any new borrower can receive their first extension of credit under the agreement. Typically, it outlines conditions such as the delivery of necessary documentation, satisfaction of due diligence checks, and compliance with any financial covenants or representations. By establishing these prerequisites, the clause ensures that the lender is protected and that all new borrowers meet the agreed standards before accessing funds, thereby managing risk and maintaining the integrity of the lending arrangement.