Common use of Operating Loans Clause in Contracts

Operating Loans. The parties recognize that Trans-Mex will require operating funds in order to achieve the goal of the parties that Terminal facilities are established at all of the major U.S./Mexican border crossings, and certain key interior Mexican locations in order to facilitate the transportation of cargo by Trans-Mex to and from the U.S./Mexican border. In order to facilitate this growth, Swift agrees to provide an operating line of credit to Trans-Mex of up to Six Thousand ($6,000) U.S. Dollars multiplied by the number of tractors that Trans-Mex operates in its fleet at any time (the "Operating Line"). Said Operating Line may be drawn upon by Trans-Mex on an as needed basis. The interest rate to be paid by Trans-Mex on such Operating Line shall be equal to the prime rate of interest charged by ▇▇▇▇▇ Fargo Bank, N.A. as may change from time to time (the "Prime Rate"). The interest on the Operating Line shall be payable monthly. The Operating Line shall be documented by a revolving line of credit promissory note. Swift shall not be obligated to loan any additional funds to Trans-Mex but may agree to do so in the future.