Lending Branch and Evidence of Credit Clause Samples
The "Lending Branch and Evidence of Credit" clause identifies the specific branch of a financial institution responsible for issuing and managing a loan, and outlines the documentation that serves as proof of the credit arrangement. In practice, this clause typically specifies the address or location of the lending branch and details the types of documents—such as promissory notes, loan agreements, or account statements—that constitute valid evidence of the loan's existence and terms. Its core function is to ensure clarity regarding which branch is accountable for the loan and to establish what records are recognized as official proof of the credit relationship, thereby reducing the risk of disputes over loan administration or documentation.
Lending Branch and Evidence of Credit. (a) The Borrower hereby unconditionally promises to pay to the Agent for the account of each Lender the then unpaid principal amount of each Advance made by such Lender on the Revolving Credit Termination Date (or such earlier date on which the Advances become due and payable pursuant to Article VIII). The Borrower hereby further agrees to pay interest on the unpaid principal amount of the Advances made to it from time to time outstanding from the Closing Date until payment in full thereof at the rates per annum, and on the dates, set forth in Section 2.08.
(b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the Borrower to such Lender resulting from each Advance made by such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this Agreement.
(c) The Agent shall maintain the Register pursuant to Section 9.04(e), and a subaccount therein for each Lender in which shall be recorded (i) the amount of each Advance made hereunder, the Type thereof and each Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) both the amount of any sum received by the Agent hereunder from the Borrower and each Lender’s share thereof.
(e) The Borrower agrees that, upon the request to the Agent by any Lender, the Borrower will execute and deliver to such Lender a Note with appropriate insertions as to date and principal amount.
(f) Each Lender’s proportionate interest in each Advance and each payment to such Lender under this Agreement and the Notes shall be made for the account of such Lender’s Lending Branch.
Lending Branch and Evidence of Credit. (a) Each Bank's proportionate interest in the Revolving Credit shall be evidenced by a Revolving Note. Each such Revolving Note shall be executed by Borrower, dated the Closing Date and provide for the payment of interest and principal in accordance with the terms of this Agreement. Each Bank shall record in its records, or at its option on the schedule attached to its respective Revolving Note, the date, amount and Type of each Advance made by such Bank and each repayment thereof, each continuation thereof, each conversion of all or a portion thereof to another Type and, in the case of Eurodollar Rate Advances, the length of each Interest Period with respect thereto. The aggregate unpaid principal amount so recorded shall constitute PRIMA FACIE evidence of the principal amount owing and unpaid on such Revolving Note absent manifest error. The failure so to record any such amount or any error in so recording any such amount shall not, however, limit or otherwise affect the obligations of Borrower hereunder or under any Revolving Note to repay the principal amount of the Advances together with all interest accruing thereon and fees accruing with respect thereto.
(b) Each Bank's proportionate interest in each Advance and each payment to such Bank under this Agreement and the Revolving Notes shall be made for the account of such Bank's Lending Branch.