Common use of Subsequent Borrowing Clause in Contracts

Subsequent Borrowing. The obligation of the Bank to make each Advance under the Line of Credit or issue a Letter of Credit hereunder (including the initial advance under the Line of Credit) is subject to the following conditions precedent: (1) At the time of each advance (as evidenced by a certificate executed on behalf of the Borrowers if the Bank shall so require): (a) Each of the Borrowers shall have complied and shall then be in compliance with all the terms, covenants and conditions of this Agreement which are binding on it; (b) There shall exist no Event of Default as defined in this Agreement or no event (including an event caused by such advance) which would be an Event of Default but for the requirement that notice be given or time lapse or both; (c) The representations and warranties contained in Article IX of this Agreement shall be true and correct in all material respects as of the date of such Advance or issuance of such Letter of Credit; and (d) There shall have been no change which has a Material Adverse Effect (in the Bank’s reasonable judgment). (2) All of the Loan Documents shall remain in full force and effect and the validity of any Loan Document shall not have been contested.