Common use of Discretionary Funding Clause in Contracts

Discretionary Funding. Beneficiary may at all times, without prejudice to its respective rights under this Agreement and without discharging or in any way increasing Completion Guarantor’s liability or obligations under the Completion Documents, make further advances to Producer or grant Producer any time or indulgence, or deal with, exchange, release, modify or abstain from perfecting, foreclosing or enforcing any security interest or other guaranty or rights which Beneficiary may have from or against Producer, provided that such action shall not hinder or interfere with Production and Delivery. If Beneficiary elects to make any advance greater than its Funding Commitment, then Completion Guarantor’s liability and obligations under the Completion Documents shall not increase because of Beneficiary having provided such additional advances unless (a) Completion Guarantor has requested the same in writing, or (b) Completion Guarantor has been paid a fee in respect of such additional advances in an amount satisfactory to Completion Guarantor.

Discretionary Funding. Beneficiary may at all times, without prejudice to its respective rights under this Agreement and without discharging or in any way increasing Completion Guarantor’s liability or obligations under the Completion Documents, make further advances to Producer or grant Producer any time or indulgence, or deal with, exchange, release, modify or abstain from perfecting, foreclosing or enforcing any security interest or other guaranty or rights which Beneficiary may have from or against Producer, provided that such action shall not hinder or interfere with Production and Delivery. If Beneficiary elects to make any advance greater than in excess of its Funding Commitment, then Completion Guarantor’s liability and obligations under the Completion Documents shall not increase because by reason of Beneficiary having provided such additional advances unless (a) Completion Guarantor has requested the same in writing, or (b) Completion Guarantor has been paid a fee in respect of relation to such additional advances in an amount satisfactory to Completion Guarantor.