Utilisation Request Irrevocable Clause Samples
The 'Utilisation Request Irrevocable' clause establishes that once a borrower submits a request to draw down funds under a loan agreement, that request cannot be withdrawn or amended. In practice, this means that after the lender receives the utilisation request, the borrower is committed to proceeding with the drawdown on the specified date and for the specified amount, and cannot later change their mind or alter the terms of the request. This clause ensures certainty and reliability for the lender, as it allows them to plan for the disbursement of funds without concern that the borrower might retract or modify their request at the last minute.
Utilisation Request Irrevocable. A Utilisation Request once given shall be irrevocable and the Borrower shall be bound to draw any Loan in accordance with the Utilisation Request, except as otherwise provided in this Agreement. If for any reason such Loan is not drawn in accordance with a Utilisation Request, the Borrower shall on demand pay to the Lender compensation for any loss or expense incurred in liquidating or redeploying funds acquired or arranged for the purpose of the proposed Loan or in terminating any such arrangement or any hedging arrangement in respect of this Agreement or otherwise as a consequence of the proposed Loan not having been drawn in accordance with the Utilisation Request.