Reserve Draw Amount Sample Clauses

The Reserve Draw Amount clause defines the specific sum that a borrower is permitted to withdraw from a reserve account under certain conditions. Typically, this clause outlines the circumstances under which funds can be accessed, such as to cover shortfalls in debt service or operating expenses, and may set limits on the frequency or amount of such draws. Its core practical function is to ensure that both parties understand the rules governing access to reserved funds, thereby providing financial flexibility to the borrower while protecting the lender’s interests.