Term 2 Advances Clause Samples

The 'Term 2 Advances' clause defines the conditions and procedures under which additional loans or credit advances may be made during a second phase or period of a financing arrangement. Typically, this clause outlines eligibility requirements, documentation needed, and any limitations on the amount or timing of such advances. By specifying these terms, the clause ensures both parties understand when and how further funds can be accessed, thereby providing clarity and predictability in the lending relationship.