Initial and Subsequent Advances Clause Samples
The "Initial and Subsequent Advances" clause defines the terms under which a lender will provide the borrower with the initial disbursement of funds and any additional advances thereafter. Typically, this clause outlines the conditions that must be met before each advance is made, such as completion of certain project milestones or submission of required documentation. Its core practical function is to structure the timing and requirements for disbursements, ensuring that funds are released in a controlled manner and only when specific criteria are satisfied, thereby managing risk for the lender and promoting proper use of loan proceeds.
Initial and Subsequent Advances. The making of each Advance (including any Advance on or after the Effective Date) is subject to the satisfaction of the following conditions precedent:
(a) No Cash Sweep Period, Event of Default, Default under either Section 8(a) or (b) or any other material Default not reasonably susceptible to cure within the applicable cure period shall have occurred and be continuing.
(b) Borrower shall have certified to Administrative Agent in writing the acquisition cost of the related Eligible Assets (including therein reasonable supporting documentation required by Administrative Agent, if any);
(c) The representations and warranties made in Section 6 hereof and in each of the other Loan Documents shall be true and correct on and as of the date of the making of such Advance in all material respects with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date).
(d) The Outstanding Principal Amount shall not, after giving effect to such Advance, exceed the lesser of the Borrowing Base and the Maximum Loan Amount.
(e) Custodian shall have issued an Eligible Asset File Receipt applicable to the Eligible Assets with respect to which a transfer of funds has been proposed.
(f) With respect to each Eligible Asset included in the Borrowing Base that is subject to a security interest (including any precautionary security interest) immediately prior to the Funding Date, Administrative Agent shall have received documentation reasonably acceptable to Administrative Agent evidencing the release of the security interest for such Eligible Asset that is duly executed by the related secured party and the related Borrower;
(g) With respect to the initial Advance, to extent invoiced at least two Business Days prior to the Effective Date, all reasonable and documented out-of-pocket costs and expenses (including attorneys’ fees and expenses) of each Agent.
(h) Except to the extent waived by Administrative Agent in its sole discretion, Borrower shall deliver or cause to be delivered on or prior to the related Funding Date, the following items to the extent applicable,
(i) to the Custodian, with respect to each Eligible Asset which is (or shall in the future be) represented by a physical certificate (including those issued electronically under the applicable state law) and is not in book entry form, the original physical certificate (or a statutorily author...
Initial and Subsequent Advances. The Administrative Borrower shall give the Administrative Agent in the case of Base Rate Advances irrevocable notice by telephone not later than 11:00 a.m. (Atlanta, Georgia time) one Business Day prior to the date of such Base Rate Advance and shall immediately confirm any such telephone notice with a written Request for Advance; provided, however, that the failure by the Administrative Borrower to confirm any notice by telephone with a written Request for Advance shall not invalidate any notice so given.
Initial and Subsequent Advances. The Administrative Borrower shall give the Administrative Agent in the case of Eurodollar Advances irrevocable notice by telephone not later than 11:00 a.m. (Atlanta, Georgia time) three (3) Business Days prior to the date of such Eurodollar Advance and shall immediately confirm any such telephone notice with a written Request for Advance; provided, however, that the failure by the Administrative Borrower to confirm any notice by telephone with a written Request for Advance shall not invalidate any notice so given.
Initial and Subsequent Advances. The making of each Advance to the Borrower (including the initial Advance) on any Business Day is subject to the satisfaction of the following further conditions precedent, both immediately prior to the making of such Advance and also after giving effect thereto and to the intended use thereof:
Initial and Subsequent Advances. A Borrower shall give the Administrative Agent in the case of Eurodollar Advances at least three (3) Business Days' irrevocable prior notice by telephone or telecopy and shall immediately confirm any such telephone notice with a written Request for Advance; provided, however, that the failure by a Borrower to confirm any notice by telephone or telecopy with a Request for Advance shall not invalidate any notice so given.
Initial and Subsequent Advances. A Borrower shall give the Administrative Agent, in the case of Base Rate Advances, not later than 11:00 a.m. (Eastern time) on the Business Day of a proposed Advance, irrevocable prior notice by telephone or telecopy and shall confirm any such telephone notice with a written Request for Advance; provided, however, that the failure by a Borrower to confirm any notice by telephone or telecopy with a Request for Advance shall not invalidate any notice so given.
Initial and Subsequent Advances. The Borrower shall give the Administrative Agent, in the case of Eurodollar Advances, irrevocable telephonic notice followed by a Request for Advance prior to 11:00 a.m. (New York time) on the date three (3) Business Days prior to the date of the requested Advance. The Administrative Agent, whose determination shall be conclusive, shall determine the available Eurodollar Basis and shall notify the Borrower of such Eurodollar Basis. The Borrower shall promptly notify the Administrative Agent by telecopy or by telephone, and shall immediately confirm any such telephonic notice in writing, of its selection of a Eurodollar Basis and a Eurodollar Advance Period for such Advance. Upon receipt of such notice from the Borrower, the Administrative Agent shall promptly notify each Lender by telephone or telecopy of the contents thereof.
Initial and Subsequent Advances. The Borrower shall give the Administrative Agent in the case of Base Rate Advances, irrevocable notice not later than 11:00 a.m. (New York time) on the date of the requested Advance by telephone followed immediately by a Request for Advance. Upon receipt of such notice from the Borrower, the Administrative Agent shall promptly notify each Lender by telephone or telecopy of the contents thereof.
Initial and Subsequent Advances. Lender's obligation to make any Advance to the Borrower (including the initial Advance) on any Funding Date is subject to the satisfaction of the following further conditions precedent and the giving of a Notice of Borrowing and Pledge by Borrower pursuant to Section 2.03(a), and the acceptance of the proceeds of any Advance by Borrower shall constitute certification by Borrower that, unless waived by the Lender, the following conditions shall have been satisfied, as applicable, both immediately prior to the making of such Advance and also after giving effect thereto and to the intended use thereof:
Initial and Subsequent Advances. The Borrower shall give the Administrative Agent in the case of Base Rate Advances, irrevocable prior written notice not later than 10:00 a.m. (New York time) on the date of such Advance in the form of a Request for Advance, or telephonic notice followed immediately by a Request for Advance; provided, however, that the Borrower's failure to confirm any telephonic notice with a Request for Advance shall not invalidate any notice so given; and provided, further, that no such notice shall be required in connection with the making of a Base Rate Advance to repay a draw under a Letter of Credit.