Procedure for Credit Borrowing Clause Samples
The Procedure for Credit Borrowing clause outlines the specific steps and requirements a party must follow to borrow credits under an agreement. Typically, this clause details the application process, necessary documentation, approval timelines, and any conditions or limitations on the amount or type of credits that can be borrowed. By establishing a clear and standardized process, this clause ensures transparency and consistency, reducing misunderstandings and disputes related to credit borrowing within the contractual relationship.
Procedure for Credit Borrowing. 13 2.4. Interest Rate...........................................15 2.5. Interest Rate Conversion Options........................15 2.6. Termination or Reduction of Commitment..................16 2.7. Prepayments.............................................16 2.8.
Procedure for Credit Borrowing. Borrowings shall be made on notice from the Funds Administrator to the Administrative Agent (x) prior to 12:00 Noon (New York City time), three Business Days prior to the requested borrowing date, if all or any part of the requested Loans are to be Eurodollar Loans and (y) prior to 2:00 P.M. (New York City time), on the Business Day of the requested borrowing date, with respect to Borrowings of Base Rate Loans, specifying (i) the amount to be borrowed, (ii) the requested borrowing date, (iii) whether the Borrowing is to be of Eurodollar Loans, Base Rate Loans, or a combination thereof and (iv) if the Borrowing is to be entirely or partly of Eurodollar Loans, the respective amounts of each such Type of Loan and the respective lengths of the initial Interest Periods therefor. Each Borrowing under the Commitments shall be in an amount equal to or in excess of (x) in the case of Base Rate Loans, One Million Dollars ($1,000,000) (or, if less, the then Total Available Commitment) and (y) in the case of Eurodollar Loans, One Million Dollars ($1,000,000); provided, however, that any Borrowing of Loans to be used solely to pay the aggregate amount of the drawing on any Letter of Credit pursuant to Section 2.3(c) may be in the amount of such drawing. Such Borrowing will then be made available to Borrowers by 4:00 P.M. (New York City time) by Administrative Agent’s crediting the account or accounts of Borrowers designated by the Funds Administrator on the books of such office with the aggregate of the Loans.
(i) Each Notice of Borrowing shall be given by, alternatively, telephone, facsimile or electronic E-mail transmission, and, if by telephone or electronic E-mail transmission, confirmed in writing on the same Business Day to the extent requested by Administrative Agent, substantially in the form of Exhibit 2.1(d) (the “Notice of Borrowing”). Each Notice of Borrowing shall be irrevocable by and binding on the Funds Administrator and the Borrowers.
(ii) The Funds Administrator shall notify the Administrative Agent in writing of the names of the officers of the Funds Administrator authorized to request Loans on behalf of the Borrowers and specifying which of those officers are also, or, if none are, the other officers that are, authorized to direct the disbursement of Loans in a manner contrary to standing disbursement instructions, and shall provide the Administrative Agent with a specimen signature of each such officer. In the absence of a specification of those of...