Variable Advances Clause Samples
The Variable Advances clause defines the terms under which a borrower can request and receive advances of funds in varying amounts from a lender, rather than fixed sums. Typically, this clause outlines the process for making advance requests, any limitations on the frequency or size of advances, and the conditions that must be met for each disbursement. Its core practical function is to provide flexibility in borrowing, allowing the borrower to access funds as needed, which can help manage cash flow and align borrowing with project or operational requirements.
Variable Advances. The obligation of Borrower to repay the Variable Advances shall be evidenced by the Variable Facility Notes. The Variable Facility Notes shall be payable to the order of Lender and shall be made in the original principal amount of each Variable Advance.
Variable Advances. The Coupon Rate shall equal the sum of (1) an interest rate as determined by Lender (rounded to three places) payable for the MBS pursuant to the MBS Commitment ("MBS Imputed Interest Rate") and (2) the Variable Facility Fee.
Variable Advances. The MBS Issue Date shall be the first day of a month and the maturity date of the MBS funding each Variable Advance shall be specified by Borrower in its Advance Request, which date shall be:
(i) no earlier than the date which completes one full month after the MBS Issue Date; and
(ii) no later than the date which completes nine full months after the MBS Issue Date. For these purposes, a year shall be deemed to consist of 12 30-day months. For example, the date which completes three full months after September 1 shall be December 1; and the date which completes three full months after January 1 shall be April 1. No principal payments in respect of any Variable Advance shall be due prior to the maturity date of such Variable Advance.
Variable Advances. The Coupon Rate applicable to a Variable Advance shall mean the sum of (1) an imputed interest rate as determined by Lender (rounded to three places) payable for the DMBS pursuant to the DMBS Commitment (“DMBS Imputed Interest Rate”) and (2) the Variable Facility Fee.
Variable Advances. The obligation of Borrower to repay each Variable Advance shall be evidenced by a separate Variable Facility Note in the form attached to this Agreement as Exhibit C-1 or Exhibit C-2. Each Variable Facility Note shall be payable to the order of Lender and shall be made in the original principal amount of such Variable Facility Advance.
Variable Advances. Interest shall accrue on the unpaid balance of a Variable Advance from the date such Advance is made at the Adjustable Rate. Interest accrued through the end of each month shall be payable two (2) Business Days before the first day of the following month as more particularly set forth in the applicable Variable Facility Note. The Adjustable Rate shall change on each Rate Change Date until the Advance is repaid in accordance with the applicable Variable Facility Note. Interest payments for Variable Advances shall be calculated on an actual/360 basis. The Adjustable Rate shall include the Variable Facility Fee.
Variable Advances. In the case of Variable Advances, within one (1) Business Day after receipt of the Rate Form approved and executed by Borrower and upon satisfaction of all of the conditions to Lender’s obligation to make the Variable Advance, Lender shall solicit bids from institutional investors selected by Lender, based on the information in the Rate Form and, provided the actual Coupon Rate would be at or below the Maximum Annual Interest Rate, shall obtain a commitment (“MBS Commitment”) for the purchase of an MBS having the bid terms described in the related Rate Form. Lender shall then complete and sign the Rate Form thereby confirming the terms set forth therein and shall immediately deliver the Rate Form to Borrower to be countersigned.