Optional Increase in Commitment Amount Sample Clauses
The "Optional Increase in Commitment Amount" clause allows a borrower to request an increase in the total amount of credit available under a loan agreement, subject to lender approval. Typically, this clause outlines the process for requesting additional funds, any conditions that must be met, and the maximum allowable increase. For example, the borrower may be permitted to ask for more funding if their business expands or new opportunities arise, provided certain financial covenants are maintained. The core function of this clause is to provide flexibility for the borrower to access additional capital without renegotiating the entire agreement, thereby streamlining future financing needs.
Optional Increase in Commitment Amount. So long as no Event of Default or Unmatured Event of Default exists or would result therefrom, the Company may, by means of a letter to the Agents substantially in the form of Exhibit E, request that the Commitment Amount be increased by (a) increasing the Commitment of one or more Banks which have agreed to such increase (it being understood that no Bank shall have any obligation to increase its Commitment pursuant to this Section 6.1.4) and/or (b) adding one or more commercial banks or other Persons as a party hereto with a Commitment in an amount agreed to by any such commercial bank or other Person; provided that (i) no commercial bank or other Person shall be added as a party hereto without the written consent of the Administrative Agent (which shall not be unreasonably withheld); (ii) in no event shall the Commitment Amount be increased by more than $50,000,000 during the term of this Agreement without the written consent of all Banks; and (iii) the Company may not request any increase pursuant to this Section 6.1.4, and no such increase may take place, after December 30, 2003. Any increase in the Commitment Amount pursuant to this Section 6.1.4 shall be effective three Business Days (or such other period of time as may be agreed upon by the Company, the Administrative Agent and the Banks or other Persons participating in such increase) after the date on which the Administrative Agent has received and accepted the applicable increase letter in the form of Annex 1 to Exhibit E (in the case of an increase in the Commitment of an existing Bank) or assumption letter in the form of Annex 2 to Exhibit E (in the case of the addition of a commercial bank or other Person as a new Bank). The Administrative Agent shall promptly notify the Company and the Banks of any increase in the Commitment Amount pursuant to this Section 6.1.4 and of the Commitment and Percentage of each Bank after giving effect thereto. The Company acknowledges that, in order to maintain Loans in accordance with each Bank's Percentage, a reallocation of the Commitments as a result of a non-pro-rata increase in the Commitment Amount may require prepayment of all or portions of certain Loans on the date of such increase (and any such prepayment shall be subject to the provisions of Section 8.4).
Optional Increase in Commitment Amount. The Agent shall promptly notify all ----------- Banks of any increase in the Commitment Amount pursuant to this Section 6.1.2. -------------