Rights Upon the Facility Termination Date Sample Clauses

The 'Rights Upon the Facility Termination Date' clause defines the entitlements and obligations of the parties when a financing facility reaches its agreed-upon end date. Typically, this clause outlines what happens to outstanding loans, accrued interest, and any undrawn commitments, specifying whether amounts must be repaid immediately or if certain rights or obligations survive termination. For example, it may clarify the lender’s right to demand repayment of all outstanding amounts or the borrower’s responsibility to settle any remaining liabilities. The core function of this clause is to ensure both parties understand their respective rights and duties at the conclusion of the facility, thereby preventing disputes and facilitating an orderly wind-down of the financial arrangement.