Optional Commitment Increase Sample Clauses
The Optional Commitment Increase clause allows parties to a contract, typically in a loan or credit agreement, to increase the total amount of committed funds under certain conditions. This clause outlines the process by which a borrower can request additional funding, often requiring lender approval and adherence to specified terms such as notice periods or maximum increase limits. Its core practical function is to provide flexibility for the borrower to access more capital as needed, while ensuring that the lender retains control over the approval of such increases, thereby addressing the need for adaptable financing arrangements.
Optional Commitment Increase. (a) The Borrower shall have the right at any time and from time to time to increase the total Commitments in an aggregate amount not to exceed $750,000,000 (i) to the extent insufficient Commitments are available from such existing Banks, by requesting that one or more banks or other financial institutions not a party to this Agreement become a Bank hereunder and (ii) by requesting that any Bank already party to this Agreement increase the amount of such Bank’s Commitment; provided that the addition of any bank or financial institution pursuant to clause (i) above shall be subject to the consent of the Administrative Agent (which consent shall not be unreasonably withheld); provided, further, that the Commitment of any bank or other financial institution pursuant to clause (i) above shall be in an aggregate principal amount at least equal to $10,000,000; provided, further, that the amount of the increase of any Bank’s Commitment pursuant to clause (ii) above, when added to the amount of such Bank’s Commitment before the increase, shall be in an aggregate principal amount at least equal to $10,000,000.
(b) Any additional bank, financial institution or other entity which elects to become a party to this Agreement and obtain a Commitment pursuant to clause (a)(i) of this Section 2.19 shall execute a New Bank Supplement (each, a “New Bank Supplement”) with the Borrower and the Administrative Agent, substantially in the form of Exhibit H. Upon its receipt of a New Bank Supplement executed by an additional bank, financial institution or other entity which elects to become a party to this Agreement and obtain a Commitment pursuant to clause (a) of this Section 2.19, together with payment to the Administrative Agent of a registration and processing fee of $3,500, the Administrative Agent shall (i) promptly accept such New Bank Supplement and (ii) record the information contained therein in the Register on the effective date determined pursuant thereto, whereupon such bank, financial institution or other entity shall become a Bank for all purposes and to the same extent as if originally a party hereto and shall be bound by and entitled to the benefits of this Agreement. Any increase in the total Commitments pursuant to clause (a)(ii) of this Section 2.19 shall be effective only upon the execution and delivery to the Borrower and the Administrative Agent of a commitment increase supplement in substantially the form of Exhibit I (a “Commitment Increase Supplement”), ...
Optional Commitment Increase. So long as no Event of Default or Unmatured Event of Default exists, the Borrower may make one request at any time after the 90th day after the Restatement Date and prior to May 15, 2002, by written notice to the Agent in the form of EXHIBIT 2.1(a)(ii) hereto, that the Total Revolving Loan Commitment be increased by $50,000,000 (the "INCREASE AMOUNT"). Such request shall be irrevocable and binding on the Borrower. The Agent shall promptly notify the Documentation Agent and each Lender of such request and of such Lender's Commitment Percentage of the Increase Amount. If a Lender agrees, in its individual and sole discretion, to increase its Revolving Loan Commitment (an "ACCEPTING LENDER"), it shall deliver to the Agent a written notice of its agreement to so increase its Revolving Loan Commitment in an amount up to its Commitment Percentage of the Increase Amount no later than 14 days from the date on which the Agent notified the Lenders of such request. To the extent that any Lender fails to accept or respond to the Borrower's request for an increase in its Revolving Loan Commitment (a "DECLINING LENDER"), such Declining Lender's Revolving Loan Commitment shall not be so increased and the declined amount may be allocated by the Agent to one or more Accepting Lenders which, in such Lender's sole and absolute discretion, accepts any such allocation by the Agent in writing. To the extent of any shortfall in the Increase Amount (the "SHORTFALL AMOUNT"), the Borrower may designate one or more Eligible Assignees other than a Lender (which Eligible Assignee shall be acceptable to the Agent) to become a Lender (a "NEW LENDER"), with the aggregate initial Commitments for all such New Lenders in an amount not to exceed the Shortfall Amount. To the extent that there are outstanding Revolving Loans on the date of any increase, a Declining Lender shall assign to any Accepting Lender which increases its Commitment Percentage or any New Lender as the Agent may designate, the amount of such Declining Lender's Revolving Loans such that the aggregate amount of its Revolving Loans equals its revised Commitment Percentage of the aggregate of all Revolving Loans of all Lenders. Notwithstanding anything to the contrary herein, the sum of the increase in the Commitments of all Accepting Lenders and the Commitments of all New Lenders shall not exceed the Increase Amount. The increase in the Commitments of Accepting Lenders and the assignment to any New Lenders shall occur on suc...
Optional Commitment Increase. Once during the term of the Line of ---------------------------- Credit, upon Bank's receipt of Borrower's written request for an increase in the maximum principal amount then available thereunder, Bank agrees to review said request and, so long as all of the conditions set forth herein are met to Bank's satisfaction, to provide an increase in said maximum principal amount to an amount which Bank deems acceptable, in its discretion:
(i) Bank shall have obtained such audits and appraisals of all collateral for the Line of Credit as Bank deems necessary, all in form, substance and performed by auditors and appraisers satisfactory to Bank, and assuring that Bank's security interests in and liens on, said collateral shall remain of first priority following any such increase, if granted, with all costs and expenses of such audits and appraisals to be paid by Borrower;
(ii) Bank shall have determined that there is sufficient collateral value to support a Line of Credit increase, based upon Bank's then current loan-to-value ratios and other policies and procedures in effect at the time such increase is requested for each type of collateral which secures the Line of Credit;
(iii) Borrower shall have paid to Bank a non-refundable commitment fee for such increase equal to one-quarter percent (1/4%) of the new maximum principal amount available under the Line of Credit;
(iv) Borrower shall have executed, or caused to be executed, and delivered to Bank any and all documents required by Bank to evidence such increase and Bank's continued security interests in and liens on all collateral for the Line of Credit, including without limitation, a Modification to the Line of Credit Note, all of which shall be in form and substance satisfactory to Bank; and
(v) at the time an increase is requested and the time, if any, any such increase is granted, there exists no Event of Default hereunder, nor any condition, act or event which with the giving of notice or the passage of time, or both, would constitute any such Event of Default.
Optional Commitment Increase. The Borrower shall have the right at any time and from time to time to increase the Commitments by an aggregate amount not to exceed $300,000,000 (i) by requesting that one or more banks or other financial institutions not a party to this Agreement become a Lender hereunder and/or (ii) by requesting that any one or more of the Lenders increase the amount of its Commitment; provided, that (x) the addition of any bank or financial institution pursuant to clause (i) above shall be subject to the consent of the Administrative Agent (which consent shall not be unreasonably withheld) and (y) no Lender's Commitment shall be increased without its consent. Each increase in the Commitments pursuant to this subsection shall be effected pursuant to an amendment to this Agreement executed and delivered by the Borrower, the Administrative Agent and the Lender, bank or other financial institution providing the increased or new Commitment, as the case may be. If, on the date upon which any increased or new Commitment shall become effective, any Loans shall be outstanding, the Borrower shall on such date be required to prepay such Loans and, to the extent it determines that it is desirable to do so, reborrow from the Lenders (giving effect to such increased or new Commitment). The Administrative Agent will notify each Lender promptly following the date upon which any new or increased Commitment becomes effective pursuant to this subsection.
Optional Commitment Increase. 25 2.20 Evidence of Debt...............................................................................25
Optional Commitment Increase