{"component": "clause", "props": {"groups": [{"samples": [{"hash": "fWUY1V4PHdJ", "uri": "/contracts/fWUY1V4PHdJ#draw-fee", "label": "Equipment Revolving Loan Agreement (Franchise Finance Corp of America)", "score": 18.0, "published": true}, {"hash": "67UsxlRKUhv", "uri": "/contracts/67UsxlRKUhv#draw-fee", "label": "Revolving Loan Agreement (Franchise Finance Corp of America)", "score": 18.0, "published": true}], "size": 2, "snippet": "In connection with the funding of each Advance under the Revolving Loan, the Borrower shall pay to the Lender, by way of deduction from the proceeds of such Advance, on the date of such funding, a non-refundable draw fee. The draw fee shall be equal to 1.00% of the amount of such Advance.", "snippet_links": [{"key": "in-connection-with", "type": "clause", "offset": [0, 18]}, {"key": "the-funding", "type": "clause", "offset": [19, 30]}, {"key": "each-advance", "type": "clause", "offset": [34, 46]}, {"key": "the-revolving-loan", "type": "clause", "offset": [53, 71]}, {"key": "the-borrower-shall", "type": "clause", "offset": [73, 91]}, {"key": "pay-to", "type": "definition", "offset": [92, 98]}, {"key": "the-lender", "type": "clause", "offset": [99, 109]}, {"key": "date-of", "type": "clause", "offset": [173, 180]}, {"key": "a-non", "type": "clause", "offset": [195, 200]}, {"key": "equal-to", "type": "definition", "offset": [244, 252]}], "hash": "be60572bb0da8a913b75da7ea27012e0", "id": 4}, {"samples": [{"hash": "9F6SLwAwToL", "uri": "/contracts/9F6SLwAwToL#draw-fee", "label": "Redraw Facility Agreement (Westpac Securitisation Management Pty LTD)", "score": 18.0, "published": true}], "size": 2, "snippet": "(a) A draw fee accrues due from day to day on the daily amount of each Redraw Advance at the following rates:\n(i) the sum of [0.12%] per annum and the Bank \u2587\u2587\u2587\u2587 Rate calculated as of that date (if that date is a Reset Date) or (otherwise) the Reset Date immediately before that date, if the Redraw Advance has been outstanding for less than 12 months; and\n(ii) the sum of [0.22%] per annum and the Bank \u2587\u2587\u2587\u2587 Rate calculated as of that date (if that date is a Reset Date) or (otherwise) the Reset Date immediately before that date, if the Redraw Advance has been outstanding for 12 months or more.\n(b) Each draw fee is calculated on the actual number of days elapsed and a year of 365 days.\n(c) The Trust Manager directs the Trustee to, and the Trustee shall, pay to the Redraw Facility Provider any accrued draw fee in arrear on:\n(i) each Payment Date; and\n(ii) at the end of the Term.\n(d) The Bank \u2587\u2587\u2587\u2587 Rate as at any date will be the Bank \u2587\u2587\u2587\u2587 Rate determined:\n(i) if that date is a Payment Date, on that Payment Date; and\n(ii) on any other date, on the Payment Date immediately preceding that date.", "snippet_links": [{"key": "daily-amount", "type": "definition", "offset": [50, 62]}, {"key": "redraw-advance", "type": "clause", "offset": [71, 85]}, {"key": "sum-of", "type": "clause", "offset": [118, 124]}, {"key": "per-annum", "type": "clause", "offset": [133, 142]}, {"key": "the-bank", "type": "clause", "offset": [147, 155]}, {"key": "reset-date", "type": "definition", "offset": [212, 222]}, {"key": "months-or-more", "type": "clause", "offset": [581, 595]}, {"key": "actual-number-of-days", "type": "clause", "offset": [636, 657]}, {"key": "a-year", "type": "definition", "offset": [670, 676]}, {"key": "the-trust-manager", "type": "definition", "offset": [694, 711]}, {"key": "the-trustee", "type": "clause", "offset": [720, 731]}, {"key": "trustee-shall", "type": "definition", "offset": [744, 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call rights under Section 2.3, then the Company agrees to issue the Draw Fee to the Backstopper, or its designated Affiliate, on the Closing Date.", "snippet_links": [{"key": "to-exercise", "type": "clause", "offset": [22, 33]}, {"key": "call-rights", "type": "definition", "offset": [38, 49]}, {"key": "section-23", "type": "clause", "offset": [56, 67]}, {"key": "to-issue", "type": "clause", "offset": [93, 101]}, {"key": "designated-affiliate", "type": "definition", "offset": [142, 162]}, {"key": "the-closing-date", "type": "clause", "offset": [167, 183]}], "hash": "c817b04191615c1f505054a151fa527d", "id": 1}, {"samples": [{"hash": "UeiMxmqQce", "uri": "/contracts/UeiMxmqQce#draw-fee", "label": "Fee Agreement", "score": 33.3136940002, "published": true}, {"hash": "fotCvvHNwqc", "uri": "/contracts/fotCvvHNwqc#draw-fee", "label": "Fee Agreement", "score": 26.4875984192, "published": true}, {"hash": "fki3pIR7wpv", "uri": "/contracts/fki3pIR7wpv#draw-fee", "label": "Fee Agreement", "score": 26.4875984192, "published": true}], "size": 5, "snippet": "The City shall pay to the Bank in connection with each and every Drawing under the Letter of Credit, a nonrefundable draw fee of $350 per Drawing,", "snippet_links": [{"key": "the-city-shall", "type": "clause", "offset": [0, 14]}, {"key": "to-the-bank", "type": "clause", "offset": [19, 30]}, {"key": "in-connection-with", "type": "clause", "offset": [31, 49]}, {"key": "the-letter-of-credit", "type": "definition", "offset": [79, 99]}], "hash": "82751fbee8ff96baecbcf381f6c995cc", "id": 2}, {"samples": [{"hash": "6nJEFIHx77S", "uri": "/contracts/6nJEFIHx77S#draw-fee", "label": "Fee Letter Agreement", "score": 32.9711837769, "published": true}, {"hash": "cf6RSoLdldv", "uri": "/contracts/cf6RSoLdldv#draw-fee", "label": "Fee Letter Agreement", "score": 32.918132782, "published": true}, {"hash": "fdEA1NtOUBh", "uri": "/contracts/fdEA1NtOUBh#draw-fee", "label": "Fee Letter Agreement", "score": 32.9156074524, "published": true}], "size": 3, "snippet": "The Corporation agrees to pay to the Bank in connection with Drawings under the Letter of Credit, a non-refundable annual fee in the amount of $1,500, payable in advance on the Date of Issuance and on each anniversary of the Date of Issuance occurring thereafter.", "snippet_links": [{"key": "the-corporation", "type": "clause", "offset": [0, 15]}, {"key": "to-the-bank", "type": "clause", "offset": [30, 41]}, {"key": "in-connection-with", "type": "clause", "offset": [42, 60]}, {"key": "drawings-under-the-letter-of-credit", "type": "clause", "offset": [61, 96]}, {"key": "a-non", "type": "clause", "offset": [98, 103]}, {"key": "annual-fee", "type": "clause", "offset": [115, 125]}, {"key": "in-advance", "type": "clause", "offset": [159, 169]}, {"key": "date-of-issuance", "type": "definition", "offset": [177, 193]}], "hash": "5bb75b9cca067cc71e6234e3c6acccc8", "id": 3}, {"samples": [{"hash": "6dCInyWwDSM", "uri": "/contracts/6dCInyWwDSM#draw-fee", "label": "Loan Agreement (CRM Holdings, Ltd.)", "score": 18.0, "published": true}], "size": 2, "snippet": "The Borrower shall pay a fee equal to 1.50% of the amount so requested for each Letter of Credit issued by Lender.", "snippet_links": [{"key": "the-borrower-shall", "type": "clause", "offset": [0, 18]}, {"key": "equal-to", "type": "definition", "offset": [29, 37]}, {"key": "each-letter-of-credit", "type": "clause", "offset": [75, 96]}, {"key": "by-lender", "type": "definition", "offset": [104, 113]}], "hash": "594ad66e918694c939f940e8bd29c47a", "id": 5}, {"samples": [{"hash": "etRipFiq3iV", "uri": "/contracts/etRipFiq3iV#draw-fee", "label": "Loan Agreement (CRM Holdings, Ltd.)", "score": 19.0, "published": true}], "size": 2, "snippet": "The Borrower will pay a fee equal to 1.50% per annum of the amount requested for each Letter of Credit, calculated from the time issued until the current expiration date of the Loan. Except as hereby amended, the Agreement shall remain in full force and effect.", "snippet_links": [{"key": "borrower-will", "type": "clause", "offset": [4, 17]}, {"key": "equal-to", "type": "definition", "offset": [28, 36]}, {"key": "per-annum", "type": "clause", "offset": [43, 52]}, {"key": "amount-requested", "type": "clause", "offset": [60, 76]}, {"key": "each-letter-of-credit", "type": "clause", "offset": [81, 102]}, {"key": "date-of", "type": "clause", "offset": [165, 172]}, {"key": "the-loan", "type": "clause", "offset": [173, 181]}, {"key": "the-agreement", "type": "clause", "offset": [209, 222]}, {"key": "full-force-and-effect", "type": "definition", "offset": [239, 260]}], "hash": "28cd7bb9b9bdb7911b945edf0b2ff327", "id": 7}, {"samples": [{"hash": "bAFtgpaSuWE", "uri": "/contracts/bAFtgpaSuWE#draw-fee", "label": "First Amendment (Versity Invest, LLC)", "score": 34.180015564, "published": true}], "size": 1, "snippet": "BorrowerBorrowers shall pay to the Administrative Agent on each Advance Date out of thea Collection Account the Draw Fee then payable with respect to such Advance.", "snippet_links": [{"key": "pay-to", "type": "definition", "offset": [24, 30]}, {"key": "the-administrative-agent", "type": "definition", "offset": [31, 55]}, {"key": "date-out", "type": "definition", "offset": [72, 80]}, {"key": "collection-account", "type": "definition", "offset": [89, 107]}, {"key": "with-respect-to", "type": "clause", "offset": [134, 149]}], "hash": "27d5103b88b71d514ab93cb874bec850", "id": 8}, {"samples": [{"hash": "jsssMkmebo8", "uri": "/contracts/jsssMkmebo8#draw-fee", "label": "Fee Agreement", "score": 23.2843589783, "published": true}], "size": 1, "snippet": "The City agrees to pay to the Bank, a non-refundable fee of", "snippet_links": [{"key": "to-the-bank", "type": "clause", "offset": [23, 34]}, {"key": "a-non", "type": "clause", "offset": [36, 41]}], "hash": "ed7f4619dac2877a7b7b2c749047b836", "id": 9}, {"samples": [{"hash": "h3nqGAMIX0Y", "uri": "/contracts/h3nqGAMIX0Y#draw-fee", "label": "Fee Letter", "score": 31.4960308075, "published": true}], "size": 1, "snippet": "The Metropolitan Government hereby agrees to pay to the Bank a non-refundable draw fee of $250 for each Drawing under the Letter of Credit, payable on the date of such Drawing.", "snippet_links": [{"key": "metropolitan-government", "type": "definition", "offset": [4, 27]}, {"key": "a-non", "type": "clause", "offset": [61, 66]}, {"key": "the-letter-of-credit", "type": "definition", "offset": [118, 138]}, {"key": "date-of", "type": "clause", "offset": [155, 162]}], "hash": "a8f3c1080733fcea4a6764918fdf8c4c", "id": 10}], "next_curs": "ClESS2oVc35sYXdpbnNpZGVyY29udHJhY3Rzci0LEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhFkcmF3LWZlZSMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"parents": [["fees", "Fees"], ["backstop-commitment", "Backstop Commitment"], ["amounts-and-terms-of-advances", "AMOUNTS AND TERMS OF ADVANCES"], ["credit-facility", "CREDIT FACILITY"], ["substitution-of-collateral-properties", "SUBSTITUTION OF COLLATERAL PROPERTIES"]], "children": [], "title": "Draw Fee", "size": 39, "id": "draw-fee", "related": [["loan-fee", "Loan Fee", "Loan Fee"], ["facility-fee", "Facility Fee", "Facility Fee"], ["origination-fee", "Origination Fee", "Origination Fee"], ["amendment-fee", "Amendment Fee", "Amendment Fee"], ["utilization-fee", "Utilization Fee", "Utilization Fee"]], "related_snippets": [], "updated": "2026-04-30T06:05:53+00:00", "also_ask": ["What are the most negotiable elements of a Draw Fee clause in financing agreements?", "Which drafting components are essential to ensure the Draw Fee is enforceable and unambiguous?", "What are the primary legal risks or pitfalls associated with poorly drafted Draw Fee provisions?", "How do Draw Fee clauses differ across jurisdictions or standard market practice?", "What factors do courts consider when determining the enforceability of a Draw Fee in case of dispute?"], "drafting_tip": "Specify the calculation method and timing of the draw fee to prevent disputes; define payment obligations clearly to ensure enforceability.", "explanation": "A Draw Fee clause establishes a fee that must be paid by a borrower each time they access or \"draw down\" funds from a credit facility or loan. Typically, this fee is calculated as a percentage of the amount drawn and is charged at the time of each disbursement, rather than on the total facility amount. The core function of this clause is to compensate the lender for making funds available and to discourage unnecessary or frequent withdrawals, thereby managing administrative costs and ensuring efficient use of the credit facility."}, "json": true, "cursor": ""}}