The VFN Sample Clauses
The VFN clause establishes the terms and conditions related to a Variable Funding Note (VFN) within a financial agreement. Typically, this clause outlines how the VFN operates, including the process for drawing funds, repayment schedules, and interest calculations, as well as any limits on the amount that can be borrowed at any given time. For example, it may specify that the borrower can access funds up to a certain cap, with interest accruing only on the drawn amount, and repayments can be made flexibly. The core practical function of the VFN clause is to provide a flexible funding mechanism, allowing borrowers to access capital as needed while managing interest costs, and giving lenders clear parameters for advancing and recovering funds.
The VFN. (i) The Borrower's obligation to pay the principal of, and interest on, all amounts advanced by the Secured Parties pursuant to any Funding shall be evidenced by a single note of the Borrower (as amended, supplemented or otherwise modified and in effect from time to time, the "VFN") which shall (1) be dated the date hereof; (2) be in the stated --- principal amount equal to the Maximum Facility Limit (as reflected from time to time on the grid attached thereto);
The VFN. (i) The Borrower's obligation to pay the principal of, and interest on, all amounts advanced by PARCO or the APA Banks pursuant to any Funding shall be evidenced by a single note of the Borrower (as amended, supplemented or otherwise modified and in effect from time to time, the "VFN") which shall (1) be dated the Closing Date; (2) be in the stated principal amount equal to the Facility Limit (as reflected from time to time on the grid attached thereto); (3) bear interest as provided therein; (4) be payable to the order of the Funding Agent for the account of PARCO and the APA Banks and mature on the Distribution Date occurring in the calendar month sixty-six (66) months following the Commitment Expiry Date (unless otherwise accelerated pursuant to the terms of the Basic Agreements); (5) be entitled to the benefits of this Agreement, the Security Agreement and the other Basic Agreements; and (6) be substantially in the form of Exhibit A to this Agreement, with blanks appropriately completed in conformity herewith. The Funding Agent shall, and is hereby authorized to, make a notation on the schedule attached to the VFN of the date and the amount of each Funding and the date and amount of the payment of principal thereon, and prior to any transfer of the VFN, the Funding Agent, on behalf of PARCO and the APA Banks, shall endorse the outstanding principal amount of the VFN on the schedule attached thereto. The entries made by the Funding Agent pursuant to the preceding sentence shall be PRIMA FACIE evidence of the existence and amounts of the obligations recorded therein; PROVIDED, HOWEVER, that failure to make such notation shall not adversely affect the rights of PARCO and the APA Banks with respect to the payment obligations of the Borrower hereunder and under the VFN.
(ii) On any VFN Prepayment Date, the Borrower shall have the option to prepay all or a portion of the VFN Balance (each, an "OPTIONAL PREPAYMENT"), subject to the following terms and conditions:
1. The Borrower shall have given the Funding Agent at least five (5) Business Days' prior written notice of its intent to effect an Optional Prepayment;
2. Unless such Optional Prepayment is to be effected on a Distribution Date (in which case the relevant calculations with respect to such Optional Prepayment shall be reflected on the applicable Servicer's Determination Date Certificate), the Borrower shall cause the Servicer to deliver to the Funding Agent, the Backup Servicer and the Rating Agencie...
The VFN. (i) The Borrower's obligation to pay the principal of, and interest on, all amounts advanced by the Secured Parties pursuant to any Funding shall be evidenced by a single note of the Borrower (as amended, supplemented or