THE COMMITMENT DOCUMENTS Sample Clauses

THE COMMITMENT DOCUMENTS. The commitment documents are a set of documents that mainly evidence a promise by the lenders to lend money to the borrower for a certain purpose, for example, to finance a construction project. Commitment documents are executed to set forth the basis upon which a credit agreement, also referred to as a “facility agreement”, will ultimately be executed by the parties. Given the complexity of a credit agreement, a heavily negotiated document (even if using an LMA template), the parties usually pre-negotiate the commitment documents. This process may not take more than a week. The word commitment mainly refers to the amount of money that the lenders will promise to lend to the borrower. In certain cases, the borrower needs a binding promise from the lender/s that they would provide the funding at a certain point of time. For example, in case of sovereign lending, the borrower may want for political reasons, to announce the start of a major construction project. To do that it will first need to secure the funding for such project. In other contexts, such as a private merger and acquisitions, in terms of a bid package (full set of bidding document send by a purchaser to a vendor), the documents sent to a vendor will contain the commitment letter attaching the long-form sheet or term sheet which is a document that sets forth the basic terms that the parties want to reach in the credit agreement and which should be the basis upon which the other closing documents are drafted to minimize transaction costs. In certain bidding processes, the commitment letter may also be submitted along with an interim facility agreement (IFA) which is a short-form loan agreement—meaning a less complex agreement—allowing the bidder to demonstrate that the funds are available to buy the company (functioning as a backup plan). In other words, the IFA is used as bridge financing until the credit agreement is agreed by the parties. The way this is done quickly is through the commitment documents with few conditions in comparison with the final credit agreement. Therefore, the whole point of executing the commitment documents is minimizing execution risk by agreeing a fall-back position if the credit agreement is not agreed. In other words, the commitment letter will give assurance to the counterparty that a given transaction can be financed up to a certain limit indicated by the commitment letter and that the parties have reached a common understanding on the basic terms of the credit ...
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Related to THE COMMITMENT DOCUMENTS

  • Amendment Documents This Amendment and any other instrument, document or certificate required by the Agent to be executed or delivered by the Borrower or any other Person in connection with this Amendment, duly executed by such Persons (the "Amendment Documents");

  • Replacement Documents Upon receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or mutilation of the Note or any other Loan Document which is not of public record, and, in the case of any such mutilation, upon surrender and cancellation of such Note or other Loan Document, Borrower will issue, in lieu thereof, a replacement Note or other Loan Document, dated the date of such lost, stolen, destroyed or mutilated Note or other Loan Document in the same principal amount thereof and otherwise of like tenor.

  • Other Loan Documents The occurrence of any default under any Loan Document or any other agreement between Borrower and Lender and such default continues for more than ten (10) days after the earlier of (a) Lender has given notice of such default to Borrower, or (b) Borrower has actual knowledge of such default; or

  • Facility Documents The Facility Documents, duly executed by the parties thereto;

  • Agreement Documents 1. This Agreement consists of the following documents: (a) This Agreement; (b) The General Terms and Conditions for Programme Cooperation Agreements appended hereto; (c) Any Programme Documents concluded hereunder; and (d) Any Special Conditions established with regard to a particular programme, IP, or Programme Document, attached to this Agreement.