The Loans and the Letters of Credit Clause Samples

The "Loans and the Letters of Credit" clause defines the terms and conditions under which a lender provides loans and issues letters of credit to a borrower. It typically outlines the types of loans available, the process for requesting advances, and the procedures for obtaining letters of credit, including any limits, fees, or collateral requirements. This clause ensures both parties understand the mechanisms for accessing funds or credit support, thereby facilitating smooth financial transactions and reducing the risk of misunderstandings regarding the availability and use of credit facilities.
The Loans and the Letters of Credit. 40 Section 2.1 Extension of Credit..................................................... 40 Section 2.2 Manner of Borrowing and Disbursement of Loans........................... 41 Section 2.3 Interest................................................................ 47 Section 2.4 Fees.................................................................... 48 Section 2.5 Prepayment/Reduction of Commitment...................................... 49 Section 2.6 Repayment............................................................... 50 Section 2.7 Revolving Loan Notes; Loan Accounts..................................... 51 Section 2.8 Manner of Payment....................................................... 51 Section 2.9 Reimbursement........................................................... 53 Section 2.10 Pro Rata Treatment...................................................... 54
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The Loans and the Letters of Credit. Section 2.1 Extension of Credit 50 Section 2.2 Manner of Borrowing and Disbursement of Loans 52 Section 2.3 Interest 57 Section 2.4 Fees 59 Section 2.5 Prepayments/Reduction of Commitments 60 Section 2.6 Repayment 63 Section 2.7 Notes; Loan Accounts 63 Section 2.8 Manner of Payment 64 Section 2.9 Reimbursement 67 Section 2.10 Pro Rata Treatment 67 Section 2.11 Application of Payments 68 Section 2.12 Use of Proceeds 69 Section 2.13 All Obligations to Constitute One Obligation 70 Section 2.14 Maximum Rate of Interest 70 Section 2.15 Letters of Credit 70 Section 2.16 Bank Products 75 Section 2.17 Additional Increase of Commitments; Additional Lenders 75 Section 2.18 Defaulting Lenders 79
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The Loans and the Letters of Credit. ARTICLE 2Section .1
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The Loans and the Letters of Credit. 32 Section 2.1 Extension of Credit.................................................... 32 Section 2.2 Manner of Borrowing and Disbursement of Loans.......................... 35 Section 2.3 Interest............................................................... 39 Section 2.4 Fees................................................................... 41 Section 2.5 Prepayment/Reduction of Commitment..................................... 43 Section 2.6 Repayment.............................................................. 44 Section 2.7 Revolving Loan Notes; Loan Accounts.................................... 45 Section 2.8 Manner of Payment...................................................... 46 Section 2.9 Reimbursement.......................................................... 49 Section 2.10 Pro Rata Treatment..................................................... 50 Section 2.11 Application of Payments................................................ 50 Section 2.12 Use of Proceeds........................................................ 51 Section 2.13 All Obligations to Constitute One Obligation........................... 51 Section 2.14 Maximum Rate of Interest............................................... 52 Section 2.15 Letters of Credit...................................................... 52
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The Loans and the Letters of Credit. Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 2.5 Section 2.6 Section 2.7 Section 2.8 Section 2.9 Section 2.10 Section 2.11 Section 2.12 Section 2.13 Section 2.14 Extension of Credit Manner of Borrowing and Disbursement of Loans. Interest. Fees. Prepayment/Reduction of Commitment. Repayment. Revolving Loan Notes; Loan Accounts.
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The Loans and the Letters of Credit. Section 2.1 Credit 18 Section 2.2 Manner of Borrowing and Disbursement of Loans 19 Section 2.3 Interest 20 Section 2.4 Fees 22 Section 2.5 Prepayment of Advances 23 Section 2.6 Repayment 23 Section 2.7 Permanent Reduction of Commitment 23 Section 2.8 Revolving Loan Notes; Loan Accounts 24 Section 2.9 Manner of Payment 24 Section 2.10 Reimbursement 25 Section 2.11 Pro Rata Treatment 26 Section 2.12 Application of Payments 27 Section 2.13 Maximum Rate of Interest 27 Section 2.14 Letters of Credit 28
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The Loans and the Letters of Credit. 28 Section 2.1 Extension of Credit 28 Section 2.2 Manner of Borrowing and Disbursement of Loans. 30 Section 2.3 Interest 35 Section 2.4 Fees 36 Section 2.5 Prepayment/Reduction of Commitment 37 Section 2.6 Repayment 38 Section 2.7 Notes; Loan Accounts 39 Section 2.8 Manner of Payment 40 Section 2.9 Reimbursement 42 Section 2.10 Pro Rata Treatment 42 Section 2.11 Application of Payments 43 Section 2.12 Use of Proceeds 44 Section 2.13 All Obligations to Constitute One Obligation 45 Section 2.14 Maximum Rate of Interest 45 Section 2.15 Letters of Credit 45 ARTICLE 3 CONDITIONS PRECEDENT 50 Section 3.1 Conditions Precedent to Initial Advance 51 Section 3.2 Conditions Precedent to Each Advance 55 Section 3.3 Conditions Precedent to Each Letter of Credit. 56
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The Loans and the Letters of Credit. 2.1 The Revolving Commitment and the Revolving Loans. (a) Subject to the terms and conditions hereof, during the period from the Closing Date up to but not including the Maturity Date, the Banks severally, but not jointly, shall make loans to the Borrower in such amounts as the Borrower may from time to time request but not exceeding in aggregate principal amount at any one time outstanding $100,000,000 (as such amount may be reduced from time to time, the "Revolving Commitment"); provided, however, that in no event shall (1) the aggregate principal amount of such loans, plus the aggregate stated amount of the Letters of Credit exceed the Revolving Commitment, and (2) the aggregate stated amount of all outstanding Letters of Credit exceed $15,000,000. All amounts borrowed by the Borrower pursuant to this Section 2.1(a) and all amounts drawn under any Letter of Credit and not repaid may be referred to hereinafter collectively as the "Revolving Loans." Each Revolving Loan requested by the Borrower shall be funded by the Banks in accordance with their Ratable Shares of the requested Revolving Loan. A Bank shall not be obligated hereunder to make any additional Revolving Loan if immediately after making such Revolving Loan, the aggregate principal balance of all Revolving Loans made by such Bank, plus such Bank's Ratable Share of any outstanding Letters of Credit would exceed such Bank's Ratable Share of the Revolving Commitment. The Revolving Loans may be comprised of Base Rate Loans or LIBOR Loans, as provided in Section 2.4. (b) On each date set forth in the table below, the Revolving Commitment as of September 29, 2000 shall be automatically reduced by the percentage amount set forth for such date in such table: ====================================================================== Calendar Year March 31 June 30 September 30 December 31 --------------------------------------------------------------------- Not Not 2000 applicable. applicable. 5.00% 5.00% --------------------------------------------------------------------- 2001 3.75% 3.75% 3.75% 3.75% --------------------------------------------------------------------- 2002 3.75% 3.75% 3.75% 3.75% --------------------------------------------------------------------- 2003 5.00% 5.00% 5.00% 5.00 --------------------------------------------------------------------- 2004 6.25% 6.25% 6.25% 6.25% --------------------------------------------------------------------- All remaining Not Not 2005 7.50% principal. app...
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The Loans and the Letters of Credit 
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Related to The Loans and the Letters of Credit

  • Loans and Letters of Credit On the Closing Date:

  • The Letters of Credit Prior to the Closing Date, the Existing Issuing Banks have issued the Existing Letters of Credit which from and after the Closing Date shall constitute Letters of Credit hereunder. Each Issuing Bank (other than the Existing Issuing Banks) severally agrees, on the terms and conditions hereinafter set forth, to issue letters of credit (the “Letters of Credit”) in U.S. Dollars for the account of the Borrower in support of obligations (including, without limitation, performance, bid and similar bonding obligations and credit enhancement) of the Borrower and its Affiliates, from time to time on any Business Day during the period from the Effective Date until the Business Day before the Termination Date in an aggregate Available Amount (i) for all Letters of Credit issued by such Issuing Bank not to exceed at any time the lesser of (x) the Letter of Credit Facility at such time and (y) such Issuing Bank’s Letter of Credit Commitment at such time and (ii) for each such Letter of Credit not to exceed the Unused Revolving Credit Commitments of the Lenders at such time; provided, however, that in no event shall the aggregate Available Amount for all Letters of Credit exceed $200,000,000; provided, further, that neither Bank of America, National Association, nor SunTrust Bank shall be required, without the consent of such Issuing Bank, to issue Letters of Credit in excess of $100,000,000 outstanding for each such Issuing Bank. No Letter of Credit shall have an expiration date (including all rights of the Borrower or the beneficiary to require renewal) later than the Business Day before the Termination Date. Within the limits of the Letter of Credit Facility, and subject to the limits referred to above, the Borrower may request the issuance of Letters of Credit under this Section 2.01(b), repay any Letter of Credit Advances resulting from drawings thereunder pursuant to Section 2.04(c) and request the issuance of additional Letters of Credit under this Section 2.01(b); provided, however, that neither Bank of America, National Association, nor SunTrust Bank shall be required to issue Letters of Credit in excess of $100,000,000 outstanding for each such Issuing Bank.