Determination of Loan Availability Sample Clauses
The Determination of Loan Availability clause defines the conditions and procedures under which a borrower can access funds from a loan facility. It typically outlines the requirements that must be met before funds are disbursed, such as providing necessary documentation, meeting financial covenants, or satisfying specific milestones. This clause ensures that both lender and borrower have a clear understanding of when and how loan proceeds become available, thereby reducing uncertainty and managing risk for both parties.
Determination of Loan Availability. A. Loan Availability shall be calculated by Agent on behalf of the Lenders on the first day of each calendar quarter and on each Calculation Date.
B. For any period of determination, Loan Availability shall equal the lesser of the following amounts:
1. Unencumbered Adjusted EBITDA for the previous four (4) quarters (x) multiplied by sixty percent (60%) and (y) divided by nine and one-quarter percent (9.25%); or
2. The Permanent Loan Estimate (using Unencumbered Adjusted EBITDA for the previous four (4) quarters) for such Approved Assets. provided, however, Loan Availability shall be reduced on a dollar for dollar basis (which reduction shall not be applied to the Acquisition Sublimit) by (x) the face amount of any Letters of Credit issued by Agent and outstanding hereunder, (y) one and one-half (1.5) times the amount of any Imposition, Lien or Encumbrance arising with respect to any Approved Asset until same is paid in full, discharged or bonded over to the satisfaction of the Agent (provided that such Imposition, Lien or Encumbrance is less than one percent (1%) of the Capitalization Value of the Approved Asset, it being acknowledged that for so long as any Imposition, Lien or Encumbrance in excess of such amount encumbers an Approved Asset, such Real Estate Asset shall not be an Approved Asset) and (z) any other unsecured indebtedness of Borrower or Guarantor.
C. In no event shall Lenders be obligated to make Advances which in the aggregate exceed Loan Availability as determined by Agent from time to time. If at any time Loan Availability is less than the Total Revolving Outstandings, Borrower shall, within thirty (30) days of such determination by Agent, either (i) cure the cause of such reduction in Loan Availability, or (ii) pay the excess to Agent on behalf of the Lenders. No additional Advances shall be made hereunder and no additional Letters of Credit shall be issued hereunder until such time as Agent determines that Loan Availability exceeds the Total Revolving Outstandings. It shall be an Event of Default if Borrower fails to cure the cause of the reduction in Loan Availability or make the required payment within such thirty (30) day period.
D. In no event shall Lenders be obligated to make an Advance under the Acquisition Sublimit which exceeds an amount equal to Loan Availability; provided that, solely for purposes of determining the Loan Availability in connection with an Advance under the Acquisition Sublimit, the Approved Acquisition for wh...
Determination of Loan Availability. A. Loan Availability shall be calculated by Agent on behalf of the Lenders on the first day of each calendar quarter and on each Calculation Date.
B. For any period of determination, Loan Availability shall equal the sum of the Tranche A Loan Availability and Tranche B Loan Availability as determined in accordance with Sections 2.B.3.C and 2.B.3.D, respectively, as may be reduced in accordance with Section 2.B.3.E.
C. For any period of determination, Tranche A Loan Availability shall equal the sum of the following three amounts, rounded down to the nearest $1,000,000.00 increment:
1. With respect to Approved Assets which, as of the Calculation Date, either Borrower or an Approved Subsidiary has owned for more than one year (and which have been in operation for more than one year), the lesser of: