Common use of Optional Commitment Increase Clause in Contracts

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.