Obligation to Make Working Capital Loans Sample Clauses
The "Obligation to Make Working Capital Loans" clause requires one party, typically a lender, to provide loans to another party for the purpose of funding day-to-day operational expenses. This clause outlines the conditions under which such loans must be made, including limits on the amount, timing, and permissible uses of the funds, such as covering payroll or inventory purchases. Its core function is to ensure that the borrower has reliable access to necessary short-term financing, thereby supporting ongoing business operations and addressing potential cash flow gaps.
Obligation to Make Working Capital Loans. If any Lender shall fail to perform its obligation to make a Working Capital loan hereunder, the amount of the Working Capital Commitments of such Lender shall, at the time of any such failure, be immediately assumed by NationsCredit so that the aggregate amount of the Working Capital Commitments to make any Working Capital Loans provided for herein shall not be reduced. No such assumption shall relieve any Lender from its Working Capital Commitments, and each such defaulting Lender agrees to repay on demand NationsCredit any Working Capital Loans made by NationsCredit in respect of such assumed Working Capital Commitments, together with interest thereon from the date of such Loan to but excluding the date of repayment at the rate applicable to such Working Capital Loans plus 1%.
Obligation to Make Working Capital Loans. If any Lender shall fail to perform its obligation to make a Working Capital Loan hereunder, the amount of the Working Capital Commitment of such Lender shall be assumed by the other Lenders ratably in proportion to their Working Capital Commitments so that the aggregate amount of the Working Capital Commitments to make any Working Capital Loans provided for herein shall not be reduced and the Working Capital Commitment of each other Lender shall be appropriately adjusted. No such assumption and adjustment shall relieve any Lender from its Working Capital Commitment, and each such defaulting Lender agrees to repay on demand the other Lenders that have assumed such Working Capital Commitment any Working Capital Loans made by such other Lenders in respect thereof, together with interest thereon from the date of such Loan to but excluding the date of repayment at the rate applicable to such Working Capital Loans plus 1%.
Obligation to Make Working Capital Loans. Except as provided in this Section below, each Member shall lend to the Company from time to time such funds as are necessary to satisfy any deficiency in the Company’s Working Capital, up to a maximum loan of $35,000,000 in the aggregate for both Members (the “Working Capital Loans”). “Working Capital” shall be defined under GAAP and shall include all working capital attributable to amounts due from and due to the Company under the Ancillary Agreements, but shall not include capital expenditures contemplated by the Refurbishment Plan or otherwise. Each Member shall contribute to each call for a Working Capital Loan in proportion to such Member’s projected coke purchases from the Company expressed as a percentage of projected coke production for the twelve calendar months commencing on the first calendar month following the date of call for the Working Capital Loan or as otherwise agreed between the Members. Except as set forth below, no Membership Interest shall be issued or changed as a result of any Working Capital Loan. Working Capital Loans shall be called by the Chief Operating Officer of the Company in conformance with the authority to be established by the Managers so as to provide the Company with the ability to fully pay its liabilities (including trade payables) when they become due. Working Capital Loans shall constitute obligations under the Promissory Notes, provided that all Working Capital Loans shall be repaid as soon as practicable from Excess Cash, as provided in Section 5.5. Working Capital Loans may be borrowed, repaid and reborrowed from time to time by the Company in such manner to both satisfy any deficiency in the Company’s Working Capital and keep all such outstanding loans to a minimum. All Working Capital Loans shall carry an interest rate equal to the prime rate as reported in the Wall Street Journal plus one and one quarter percent (1.25%), payable monthly. All Working Capital Loans shall be repaid to the Members in proportion to the outstanding amounts of the Working Capital Loans.