Drawdown/Reverse Wire Clause Samples

The Drawdown/Reverse Wire clause governs the process by which funds are transferred from a lender to a borrower, typically in the context of a loan or credit facility. Under this clause, the borrower may request disbursement of funds by instructing the lender to send money directly to a third party or to the borrower's account, often using a wire transfer. This mechanism is commonly used in real estate or commercial transactions where timely payment to vendors or sellers is required. The core function of this clause is to facilitate efficient and controlled disbursement of loan proceeds, ensuring that funds are used for their intended purpose and reducing the risk of misallocation.