Support Facility - General Clause Samples
The 'Support Facility - General' clause defines the basic terms and conditions under which a lender or financial institution provides a support facility, such as a line of credit or standby funding, to a borrower. This clause typically outlines the scope of the facility, eligibility requirements, and the general obligations of both parties, such as how funds can be drawn and repaid. By establishing these foundational rules, the clause ensures both parties understand the framework for accessing and managing the support facility, thereby reducing uncertainty and facilitating smooth financial operations.
Support Facility - General. (1) The Company has obtained the Initial Support Facility. Pursuant to the Participation Agreement, the Company has agreed not to request that the interest rate mode applicable to the Bonds be adjusted to an Adjustable Rate other than an Auction Rate unless there shall be in effect, prior to the applicable Change in the Interest Rate Mode, one or more Support Facilities which (i) meet the requirements of this Article VI and (ii) permit the Bonds to be rated at least "A" by S&P, "A" by ▇▇▇▇▇'▇ or "A" by Fitch or its equivalent by any nationally recognized rating agency. The Company has further agreed to maintain a Liquidity Facility meeting the requirements of the Participation Agreement with respect to the Bonds at all times, except with respect to Bonds bearing interest at an Auction Rate or a Fixed Rate. A Liquidity Facility also must be in effect prior to (i) any Change in the Interest Rate Mode from an Auction Rate to another Adjustable Rate, and (ii) any Change in the Interest Rate Mode from a Fixed Rate to an Adjustable Rate (other than a Change in the Interest Rate Mode to an Auction Rate Period). The Trustee shall be furnished with a certified copy of any Support Facility obtained pursuant to this Section 6.01. Any Support Facility Issuer not located in New York State shall provide the Trustee with a list of holidays on which it is closed through the next succeeding January 1 at the beginning of the term of such Support Facility and by January 1 of each year thereafter.
(2) Notwithstanding any other provision in this Indenture, upon the occurrence of an Event of Default and so long as a Credit Facility is in full force and effect and the Credit Facility Issuer is not in default under the Credit Facility, then, in all such events, the Credit Facility Issuer shall be deemed to be the sole Holder of the Bonds the payment of which such Credit Facility supports when the approval, consent, direction or any other action of the Holders of such Bonds is required or may be exercised under this Indenture, including, without limitation, (i) the right to control and direct the declaration of principal of and accrued interest on all the Bonds then Outstanding to be due and payable immediately pursuant to Section 12.03, and (ii) the right to rescind and annul any such declaration in clause (i) of this paragraph and its consequences pursuant to Section 12.03.
(3) The Trustee shall not make a draw or borrowing under the Initial Support Facility to pay principal of,...
Support Facility - General. VI-1 SECTION 6.02. Alternate Support Facility...............................VI-1 SECTION 6.03. Trustee not Responsible for Enforcement of Support Facility ...........................................................................VI-2
Support Facility - General. 54 Section 6.02. Support Facility - Delivery of an initial Liquidity Facility and Alternate Support Facility..........................................................................
Support Facility - General. VI-1 SECTION 6.02. Alternate Support Facility .............................. VI-1 SECTION 6.03. Trustee not Responsible for Enforcement of Support Facility .............................................. VI-2 (ii) ARTICLE VII GENERAL TERMS AND PROVISIONS OF BONDS SECTION 7.01. Execution and Authentication of Bonds .................. VII-1 SECTION 7.02. Books of Registry ...................................... VII-1 SECTION 7.03. Transfer, Registration and Exchange of Bonds ........... VII-1 SECTION 7.04. Mutilated, Lost, Stolen, or Destroyed Bonds ............ VII-2 SECTION 7.05. Temporary Bonds ........................................ VII-3 SECTION 7.06. Disposition of Bonds ................................... VII-4 ARTICLE VIII ESTABLISHMENT OF THE PROJECT FUND
Support Facility - General. (1) Pursuant to the Participation Agreement, the Company has agreed not to request that the interest rate mode applicable to the Bonds be adjusted to an Adjustable Rate or a Fixed Rate unless on the effective date of the applicable Change in the Interest Rate Mode the Bonds to be converted shall be rated at least “A” by S&P or “A2” by ▇▇▇▇▇’▇ or “A” by Fitch or an equivalent rating by any nationally recognized rating agency. Subject to the requirements of the Participation Agreement, such rating of the Bonds may, but is not required to, be achieved by obtaining a Support Facility which meets the requirements of this Article VI. The Company has further agreed to maintain a Liquidity Facility meeting the requirements of the Participation Agreement with respect to the Bonds at all times, except with respect to Bonds bearing interest at an Auction Rate, a Fixed Rate or a Term Rate for a Calculation Period in excess of thirteen months. A Liquidity Facility also must be in effect on or prior to the effective date of any Change in the Interest Rate Mode from an Auction Rate to another Adjustable Rate (other than a Change in the Interest Rate Mode to an Auction Rate or to a Term Rate Period in excess of thirteen months). The Trustee shall be furnished with a certified copy of any Support Facility obtained pursuant to this Section 6.01. Any Support Facility Issuer not located in New York State shall provide the Trustee with a list of holidays on which it is closed through the next succeeding January 1 at the beginning of the term of such Support Facility and by January 1 of each year thereafter.
(2) Notwithstanding any other provision in this Indenture, upon the occurrence of an Event of Default and so long as no Support Facility Issuer Default has occurred and is continuing, then, in all such events, the Credit Facility Issuer shall be deemed to be the sole Holder of the Bonds the payment of which such Credit Facility supports when the approval, consent, direction or any other action of the Holders of such Bonds is required or may be exercised under this Indenture (except with respect to approvals, consents, directions or other actions requiring the consent of all Holders set forth in Section 14.02 and Section 14.07), including, without limitation, (i) the right to control and direct the declaration of principal of and accrued interest on all the Bonds then Outstanding to be due and payable immediately pursuant to Section 12.03, and (ii) the right to rescind and a...