Second Advances Clause Samples
The "Second Advances" clause defines the terms under which a lender may provide additional funds to a borrower after the initial loan disbursement. Typically, this clause outlines the conditions that must be met for the borrower to qualify for a second advance, such as achieving certain milestones or maintaining compliance with the loan agreement. It may also specify the maximum amount, timing, and process for requesting and approving further advances. The core function of this clause is to provide a structured mechanism for incremental funding, ensuring both parties understand when and how additional capital can be accessed, thereby reducing uncertainty and managing financial risk.
Second Advances. The obligation of the Bank to make available the Second Advance in respect of any Ship shall be subject to the condition that the Bank or its duly authorised representative shall have received, on or prior to the drawdown of the relevant Second Advance, the relevant documents and evidence specified in Part 3 of schedule 2 in respect of such Ship, in form and substance satisfactory to the Bank.
Second Advances. The obligation of the Bank to make available the Second Advance in respect of any Newbuilding shall be subject to the condition that the Bank or its duly authorised representative shall have received, on or prior to the drawdown of the relevant Second Advance, the relevant documents and evidence specified in Part 3 of schedule 2 in respect of such Newbuilding, in form and substance satisfactory to the Bank.
Second Advances. 1 Previous conditions precedent 2 No claim