Special Drawdowns Clause Samples
The Special Drawdowns clause defines the conditions under which a party can request and receive funds from a credit facility outside of the standard drawdown schedule. Typically, this clause outlines specific events or circumstances—such as urgent capital needs, project milestones, or unforeseen expenses—that justify a special drawdown, and may set limits on the amount or frequency of such requests. Its core practical function is to provide flexibility in accessing funds, ensuring that the borrower can respond to exceptional financial needs without breaching the overall terms of the agreement.
Special Drawdowns. If, in connection with the making of any Partnership Investment or the payment of any Partnership Investment Expense in respect of which a Drawdown Notice has been delivered, the General Partner shall determine, in its discretion, that it is necessary or desirable to increase the required Capital Contribution to be made by any Limited Partner in connection therewith, the General Partner shall deliver an additional Drawdown Notice to such Limited Partner amending the original Drawdown Notice and specifying:
(i) the amount of any increase in any Investment Drawdown Amount or in the Expenses Drawdown Amount, as the case may be;
(ii) the amount of the increase in the required Capital Contribution to be made by such Limited Partner;
(iii) the Drawdown Date with respect to the amount of the increase in the required Capital Contribution if different from the Drawdown Date specified in the original Drawdown Notice; provided that the Drawdown Date with respect to the amount of such increase shall be at least ten Business Days after delivery of such additional Drawdown Notice; and
(iv) the reason for such increase. For the avoidance of doubt, the Partners agree that a Limited Partner shall never be required to make Capital Contributions pursuant to this Section 5.02(c) in excess of its then Available Capital Commitment. Any increase in the required Capital Contribution of any Limited Partner pursuant to Section 5.03 shall be calculated in the manner set forth therein. Any increase in the required Capital Contribution of the General Partner and each Limited Partner due to an increase in any Investment Drawdown Amount or the Expenses Drawdown Amount, as the case may be, specified in the original Drawdown Notice shall be calculated in accordance with Section 5.02(b)(ii) and Section 5.02(b)(iii) (after giving effect to Section 5.03, as appropriate) with respect to the amount of such increase.
Special Drawdowns