Facility 2 Clause Samples
The 'Facility 2' clause defines the terms and conditions governing a specific credit facility or loan arrangement, typically identified as the second in a series of such facilities within a broader financing agreement. This clause outlines key details such as the amount available, the purpose of the facility, repayment terms, interest rates, and any specific covenants or conditions precedent that apply uniquely to Facility 2. By clearly delineating the rights and obligations associated with this particular facility, the clause ensures that both lender and borrower understand the distinct parameters and requirements, thereby reducing ambiguity and facilitating effective management of multiple financing arrangements.
Facility 2. Subject to the terms and conditions of this Agreement (including the limitations set forth in Subparagraph 2.01(c)):
(i) Lessor shall, on the Closing Date, purchase (with funds provided by the Participants) (A) the Improvements to the Facility 1 Land (as more fully defined in Schedule 1.01, the "Facility 2 Improvements"), together with any Appurtenant Rights thereto and any other related property;
(ii) Immediately upon the purchase by Lessor of the Facility 2 Improvements on the Closing Date, Lessor and Lessee shall execute (A) a Facility 2 Lease Agreement in the form of Exhibit B(2) (the "Facility 2 Lease Agreement"), pursuant to which Lessor will lease to Lessee such property, (B) a Facility 2 Purchase Agreement in the form of Exhibit C(2) (the "Facility 2 Purchase Agreement"), pursuant to which Lessor grants to Lessee the right to purchase such property and (C) a Facility 2 Construction Agency Agreement in the form of Exhibit D (the "Facility 2 Construction Agency Agreement"), pursuant to which Lessee agrees to construct certain improvements to the Facility 2 Improvements; and
(iii) During the period beginning on the Closing Date and ending on the first Business Day of the first full calendar month immediately succeeding the earliest of (A) September 30, 1998 (the "Outside Completion Date"), (B) the Completion Date and (C) the date on which the Unused Total Commitment is $0 (such first Business Day to be referred to as the "Commitment Termination Date"), Lessor shall, at the request of Lessee, make additional advances (with funds provided by the Participants) to pay Permitted Improvement Costs and Permitted Transaction Expenses under Facility 2 ("Improvement/Expense Advances").
Facility 2. The aggregate amount of the Advances made by Lessor on account of each Parcel of Property under Facility 2 shall not exceed the following respective amounts: Parcel Amount ----------------------------- --------------------- 1 (3930, 3960 and 3970 $11,609,404 North First Street) 2 (4145 North First Stree▇ $ ▇,▇▇▇,▇▇▇ and 55 Vista Montana) 3 (4000 North First Street) $ 73,387,343 ▇ (▇▇ ▇▇▇▇▇ ▇▇▇tana) $ 12,859,356 5 (4041 North First Street) $ 24,809,657 ▇ (▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ Street) $ 52,460,114 ▇ (▇▇▇▇ ▇▇▇▇▇er) $ 38,824,272 8 (3940 and 3950 North $ 23,796,438 First Street) ----------------------------- --------------------- Total $245,293,644 The aggregate amount of all Advances made by Lessor under Facility 2 shall not exceed the total set forth above (the "Total Facility 2 Commitment").
Facility 2. The second credit facility is a term loan in the aggregate principal amount of $2,550,000 (the “Secondary Term Loan”) which will be loaned in one advance, subject to the terms hereof, upon the Borrowers’ request, provided that the Borrowers may not request, and Bank shall not be obligated to make such Secondary Term Loan after December 31, 2005 (the “Funding Expiration Date”). The obligation of the Borrowers to repay the Secondary Term Loan, if made, shall be evidenced by a term note of the Borrowers dated as of the date such Secondary Term Loan is made and in the form attached hereto as Exhibit A (the “Secondary Term Note”). The Secondary Term Loan, if made, will be used by the Borrowers to finance a portion of the purchase price of the Hunting Park Property.
Facility 2. Subject to the terms and conditions hereof, and relying upon the representations and warranties herein set forth, the Lenders agree to make Facility 2 to the Borrower. The principal amount of Facility 2 outstanding at any time shall not exceed Ten Million Dollars ($10,000,000) and the principal amount of Facility 2 on a combined basis with Facility 1 shall not exceed the Borrowing Base. The proceeds of Facility 2 will be used solely for the acquisition and development by the Borrower of Real Estate Assets as described herein. The proceeds of Facility 2 will be advanced to the Borrower in accordance with and subject to the requirements and limitations set forth herein. If prior to the Facility 2 Maturity Date, the Borrower repays any Advance(s) of Facility 2, or any portion thereof, loan proceeds in an amount equal to the amount of the repayment will again be made available to the Borrower for Advances, subject to the terms and conditions hereof.
Facility 2. The Bank agrees, on the terms and conditions set forth herein, to make loans to the Borrower (each such loan, a "Facility 2 Loan") from time to time on any Business Day during the period from the Closing Date to the Revolving Termination Date, in an aggregate amount, together with the L/C Obligations, not to exceed at any time outstanding the amount of the Facility 2 Commitment. Within the limits of the Facility 2 Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.1(b), prepay under Section 2.6 and reborrow under this Section 2.1(b).
Facility 2. (a) Commission on Guarantees
Facility 2. The Borrower shall pay to the Bank interest on the unpaid principal amount of each Revolving Loan made by the Bank to the Borrower under Facility 2 for the period commencing on the date of such Revolving Loan until such Revolving Loan shall be paid in full, at a rate per annum equal to the greater of (x) the Prime Rate plus 0.00%, and (y) 3.50%. Any change in the interest rate resulting from a change in the Prime Rate shall be effective as of the opening of business on the day on which such change in the Prime Rate becomes effective.