Payments Mandatory Prepayment Reserve Requirements and Illegality Clause Samples
This clause outlines the rules and obligations regarding payments, mandatory prepayments, and the handling of situations where reserve requirements or legal restrictions affect the agreement. It typically specifies when and how borrowers must make payments, under what circumstances they are required to prepay amounts (such as changes in law or increased reserve costs), and what happens if continuing the agreement becomes illegal. The core function of this clause is to ensure that both parties understand their financial responsibilities and to provide mechanisms for dealing with regulatory or legal changes that impact the contract, thereby managing risk and maintaining compliance.
Payments Mandatory Prepayment Reserve Requirements and Illegality. 16.1. All moneys payable by the Borrowers under or pursuant to any of the Finance Documents (excluding any Master Agreement) shall be paid to such accounts at such banks as the Agent may from time to time direct to the Borrowers and (unless payable in any other Currency of Account) shall be paid in Dollars in same day funds (or such funds as are required by the authorities in the United States of America for settlement of international payments for immediate value). Payments shall be deemed to have been received by the Agent on the date on which the Agent receives authenticated advice of receipt, unless that advice is received by the Agent on a day other than a Business Day or at a time of day (whether on a Business Day or not) when the Agent in its discretion considers that it is impossible or impracticable for the Agent to utilise the moneys received for value that same day, in which event those moneys shall be deemed to have been received by the Agent on the next Business Day following the date of receipt of advice by the Agent.
16.2. All payments (whether of principal or interest or otherwise) to be made by the Borrowers pursuant to the Finance Documents (excluding any Master Agreement) shall, subject only to Clause 16.3, be made without any Tax Deduction, and payments to be made by a Security Party under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim and the Borrowers will not claim any equity in respect of any payment due from them to the Finance Parties under or in relation to any of the Finance Documents (excluding any Master Agreement). If at any time any law requires (or is interpreted to require) any of the Borrowers to make a Tax Deduction from any payment, that Borrower will simultaneously with making that payment pay to the Agent whatever additional amount (after taking into account any additional Taxes on, or Tax Deduction from, or restrictions or conditions on, that additional amount) is necessary to ensure that, after making the Tax Deduction, the Banks receive a net sum equal to the sum which they would have received had no Tax Deduction been made.
16.3. If at any time any of the Borrowers is required by law to make a Tax Deduction, that Borrower shall promptly notify the Agent and will pay the full amount required in connection with that Tax Deduction to the relevant authority within the time allowed for such payment under the applicable law and will, no lat...
Payments Mandatory Prepayment Reserve Requirements and Illegality. All moneys payable by the Borrowers under or pursuant to any of the Finance Documents (excluding any Master Agreement) shall be paid to such accounts at such banks as the Agent may from time to time direct to the Borrowers and (unless payable in any other Currency of Account) shall be paid in Dollars in same day funds (or such funds as are required by the authorities in the United States of America for settlement of international payments for immediate value). Payments shall be deemed to have been received by the Agent on the date on which the Agent receives authenticated advice of receipt, unless that advice is received by the Agent on a day other than a Business Day or at a time of day (whether on a Business Day or not) when the Agent in its discretion considers that it is impossible or impracticable for the Agent to utilise the moneys received for value that same day, in which event those moneys shall be deemed to have been received by the Agent on the next Business Day following the date of receipt of advice by the Agent.
Payments Mandatory Prepayment Reserve Requirements and Illegality. 13.1 Payments All amounts payable by the Borrowers to the Finance Parties under or pursuant to any of the Security Documents shall be paid to such accounts at such banks as the Agent may from time to time direct to the Borrowers and shall be paid in Dollars in same day funds (or such funds as are required by the authorities in the United States of America for settlement of international payments for immediate value). Payments shall be deemed to have been received by the Agent on the date on which the Agent receives authenticated advice of receipt, unless that advice is received by the Agent on a day other than a Business Day or at a time of day (whether on a Business Day or not) when the Agent in its reasonable discretion considers that it is impossible or impracticable for the Agent to utilise the amount received for value that same day, in which event the payment in question shall be deemed to have been received by the Agent on the Business Day next following the date of receipt of advice by the Agent.
Payments Mandatory Prepayment Reserve Requirements and Illegality