THE COMMITMENTS AND THE ADVANCES Clause Samples
The "Commitments and the Advances" clause defines the obligations of the lender to provide funds (advances) to the borrower under a loan agreement, as well as the borrower's right to request such advances within agreed limits. Typically, this clause outlines the maximum amount available, the conditions under which advances can be drawn, and any procedures or requirements for making drawdown requests. Its core practical function is to establish a clear framework for how and when funds are disbursed, ensuring both parties understand the process and limitations, thereby reducing the risk of disputes over loan funding.
THE COMMITMENTS AND THE ADVANCES. 12 2.1 Commitments of the Banks.............................................12 (a) Revolving Credit Commitment.....................................12 (b) Term Loan Commitment............................................12 2.2 Termination and Reduction of Revolving Credit Commitments............12 2.3 Fees.................................................................13 (a) Commitment Fee..................................................13 (b) Agency Fee......................................................13 (c) Letter of Credit Fees...........................................13 2.4
THE COMMITMENTS AND THE ADVANCES. 2.1 Commitments of the Lenders.
THE COMMITMENTS AND THE ADVANCES. 2.1 Commitment of the Bank.
THE COMMITMENTS AND THE ADVANCES. SECTION 2.1. The Commitments 14 SECTION 2.2. Method of Borrowing 15 SECTION 2.3. Funding of Borrowings 15 SECTION 2.4. Continuations and Conversions 15 SECTION 2.5. Minimum Amounts 16 SECTION 2.6. Reduction of the Commitments 16 SECTION 3.1. Interest 18 SECTION 3.2. Prepayments 18 SECTION 3.3. Payment in full at Maturity 19 SECTION 3.4. Fees 19 SECTION 3.5. Place and Manner of Payments 19 SECTION 3.6. Pro Rata Treatment 20 SECTION 3.7. Computations of Interest and Fees 20 SECTION 3.8. Sharing of Payments 21 SECTION 3.9. Additional Interest on Advances 21 SECTION 3.10. Evidence of Debt 22
THE COMMITMENTS AND THE ADVANCES. 15 2.1 Commitments of the Banks...............................15 (a) Revolving Credit Advances.....................15 (b) Swing Line Loan...............................15 (c) Limitation on Amount of Advances..............16 (d) Extensions....................................16 (e) Non-Pro Rata Loans............................17 2.2 Bid-Option Loans.......................................17
THE COMMITMENTS AND THE ADVANCES. 2.1 Commitments of the Banks.
(a) Each Bank agrees, for itself only, subject to the terms and conditions of this Agreement, to make Revolving Credit Loans denominated in any Syndicated Currency to the Borrowers pursuant to Section 2.6 and Section 3.3 and to participate in Letter of Credit Advances denominated in any Syndicated Currency to the Borrowers pursuant to Section 2.6, from time to time from and including the Effective Date to but excluding the Termination Date, not to exceed in aggregate principal amount at any time outstanding the amount of its respective Revolving Credit Commitment as of the date any such Advance is made; provided, however, that (i) the Dollar Equivalent of the aggregate principal amount of Letter of Credit Advances outstanding at any time shall not exceed $25,000,000, (ii) the Dollar Equivalent of all Alternate Currency Loans outstanding at any time shall not exceed $50,000,000, (iii) the Dollar Equivalent of all Revolving Credit Advances, all Swing Loans and all Alternate Currency Loans outstanding at any time shall not exceed the aggregate Revolving Credit Commitments, (iv) the Dollar Equivalent of all Revolving Credit Advances and all Swing Loans outstanding at any time shall not exceed the aggregate Activated Revolving Credit Commitments, and (v) the Dollar Equivalent of all Alternate Currency Loans outstanding at any time shall not exceed the aggregate Activated Alternate Currency Commitments.
THE COMMITMENTS AND THE ADVANCES. Commitment of the Banks.
THE COMMITMENTS AND THE ADVANCES