Requests for Facility Increases Clause Samples
The "Requests for Facility Increases" clause defines the process by which a borrower can formally request an increase to the total amount available under a credit facility. Typically, this clause outlines the conditions that must be met for such a request, such as providing written notice to the lender, specifying the desired increase amount, and sometimes obtaining the consent of existing or new lenders. For example, it may require that the borrower is not in default and that the increase does not exceed a predetermined cap. The core function of this clause is to provide a clear and structured mechanism for expanding borrowing capacity, thereby offering flexibility to the borrower while protecting the lender’s interests.
Requests for Facility Increases. Subject to compliance with the terms of this Section 2.6, Borrower may request permanent increases to the Aggregate Commitment (each such increase, a “Facility Increase”), by: (x) admitting additional Lenders in accordance with Section 10.18 (each, a “Subsequent Lender”); or (y) obtaining an increase in the Commitment of any Lender (each, an “Increasing Lender”), or both, in each case as invited to participate in such increase at Borrower’s option (each such Subsequent Lender or Increasing Lender, an “Invited Lender”).