Effectiveness of Application Clause Samples

The 'Effectiveness of Application' clause defines when and under what conditions an application, such as a contract, agreement, or request, becomes valid and enforceable. Typically, this clause specifies the date or event that triggers the application’s legal effect, such as upon signature by all parties or upon receipt by a designated authority. By clearly establishing the point at which the application takes effect, this clause ensures all parties understand their rights and obligations from a specific moment, thereby preventing disputes over timing and enforceability.
Effectiveness of Application. The indication of intention to apply for a drawdown pursuant to Section 5.1 shall be effective upon the Lender’s receiving the Drawdown Application. After the Lender receives the Drawdown Application, the Borrower may not, for any reason, cancel or change the application for a drawdown under Section 5.1.