Common use of Increase in Commitment Clause in Contracts

Increase in Commitment. Provided that no Default or Event of Default has occurred and is continuing, upon notice to the Lender, Denver Water may from time to time request an increase in the amount of the Commitment, subject to the Lender’s credit approval, by an aggregate amount (for all such requests) not exceeding $20,000,000. Any such request for an increase shall be in a minimum amount of $10,000,000, and Denver Water may make a maximum of two such requests. At the time of sending such notice, Denver Water (in consultation with the Lender) shall specify the time period within which the Lender is requested to respond, which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Lender. The Lender shall promptly notify Denver Water of the Lender’s response to each request made hereunder. If the amount of the Commitment is increased in accordance with this Section 2.11(b), the Lender and Denver Water shall determine the effective date thereof (the “Increase Effective Date.”) As a condition precedent to such increase, Denver Water shall deliver to the Lender a certificate of Denver Water dated as of the Increase Effective Date and signed by a Responsible Officer of Denver Water certifying that, as of the Increase Effective Date, the representations and certifications and agreements contained in Article IV hereof remain true and correct with suitable variations in the language of certificate as agreed to between the Lender and Denver Water.