Permitted Advance Sample Clauses
The Permitted Advance clause defines the specific conditions under which a lender is allowed to provide additional funds to a borrower beyond the original loan amount. Typically, this clause outlines the maximum amount, timing, and purposes for which such advances can be made, such as covering unexpected expenses or funding approved projects. By clearly setting these parameters, the clause helps prevent disputes over unauthorized borrowing and ensures both parties understand when and how extra funds may be accessed.
Permitted Advance. A “Permitted Advance” is an advance on a Shared-Loss Loan which is made by the Assuming Institution in good faith, justified by contemporaneous supporting documentation in the Credit File, in accordance with the applicable requirements set forth in Article 3 and with the then effective written internal credit policy guidelines of the Assuming Institution and which meets the following criteria: