New Borrowing Clause Samples
The 'New Borrowing' clause defines the conditions under which a borrower may take on additional debt during the term of an agreement. Typically, this clause sets limits or requires lender consent before the borrower can incur new loans, lines of credit, or other financial obligations. For example, it may prohibit the borrower from exceeding a certain debt threshold or require notification to the lender before entering new financing arrangements. Its core practical function is to protect the lender by preventing the borrower from overextending financially, thereby reducing the risk of default and ensuring the borrower's ongoing ability to meet existing obligations.
New Borrowing. Notwithstanding anything to the contrary in the Credit Agreement, during the period from and after December 31, 2000, the Companies shall not request, and the Companies shall not be entitled to receive, any new Borrowing unless the Chief Executive Officer or Chief Financial Officer of Danka PLC shall have, on or before the date of any such request, delivered a certificate to the Banks (in care of the Agent) setting forth in reasonable detail the then current cash balances and cash flow projections of the Companies and certifying that the Companies require the proceeds from such request in order for the Companies to be able to pay all of their costs and expenses incurred in the ordinary course of business and to operate their businesses in the ordinary course of business in the immediate two weeks following any such request; provided, however, that the Companies shall not be required to deliver such certificate for any new Borrowing where the aggregate amount outstanding against ABN Amro Bank N.V.'s commitments under the International Swing Line Agreement after giving effect to such new Borrowing does not exceed $7,000,000; and provided further that an election to continue any Syndicated Loan or Bank of America Swing Line loan pursuant to Section 2.4(a)(ii) of the Credit Agreement shall not be considered a new Borrowing for purpose of this paragraph 3. At the request of the Banks (acting through the Agent) the Companies shall provide to the Banks such additional facts and evidence supporting the conclusions contained in such certificate as may be reasonably requested by the Agent.
New Borrowing. EE Holdco shall procure that EE shall not enter into (or, as the case may be, issue) any loan arrangement, lease, sale and leaseback arrangement, debt instrument, bonds or other similar arrangement as a result of which its aggregate indebtedness for borrowed money is increased beyond that stated in the Exchange Balance Sheet except (i) Inter-company Debt, or (ii) with the prior written consent of the Buyer (not to be unreasonably withheld or delayed).
New Borrowing. Notwithstanding anything to the contrary in the Credit Agreement, during the period from and after September 30, 2000, the Companies shall not request, and the Companies shall not be entitled to receive, any new Borrowing unless the Chief Executive Officer or Chief Financial Officer of Danka PLC shall have, on or before the date of any such request, delivered a certificate to the Banks (in care of the Agent) setting forth in reasonable detail the then current cash balances and cash flow projections of the Companies and certifying that the Companies require the proceeds from such request in order for the Companies to be able to pay all of their costs and expenses incurred in the ordinary course of business and to operate their businesses in the ordinary course of business in the immediate two weeks following any such request. At the request of the Banks (acting through the Agent) the Companies shall provide to the Banks such additional facts and evidence supporting the conclusions contained in such certificate as may be reasonably requested by the Agent.