Warehousing Commitment Fees Clause Samples
The Warehousing Commitment Fees clause defines the fees payable by a party, typically a borrower, for the commitment of a lender or financial institution to provide warehousing facilities or credit lines. In practice, this fee is often calculated as a percentage of the committed but undrawn amount and is paid periodically, such as monthly or quarterly, regardless of whether the facility is fully utilized. The core function of this clause is to compensate the lender for reserving funds and maintaining readiness to provide financing, thereby ensuring the lender is remunerated for the opportunity cost and administrative burden of keeping the facility available.
Warehousing Commitment Fees. Borrower must pay Lender a fee (“Warehousing Commitment Fee”) in the amount set forth in Exhibit I. The Warehousing Commitment Fee is payable quarterly in advance. On the Closing Date, Borrower must pay the prorated portion of the Warehousing Commitment Fee due from the Closing Date to the last day of the current Calendar Quarter. After the Closing Date, Borrower must pay the Warehousing Commitment Fee within 9 days after the date of Lender’s invoice or, if applicable, within 2 days after the date of Lender’s account analysis statement. If the date set forth in clause (a) of the definition of Warehousing Maturity Date occurs on a day other than the last day of a Calendar Quarter, Borrower must pay the prorated portion of the Warehousing Commitment Fee due from the beginning of the then current Calendar Quarter to and including that date. Borrower is not entitled to a reduction in the amount of the Warehousing Commitment Fee if (a) the Warehousing Commitment Amount is reduced or (b) the Warehousing Commitment is terminated at the request of Borrower or as a result of an Event of Default. If the Warehousing Commitment terminates at the request of Borrower or as a result of an Event of Default, Borrower must pay, on the date of termination, a Warehousing Commitment Fee on the Warehousing Commitment Amount in effect immediately prior to termination, for the period from the date of termination to and including the date set forth in clause (a) of the definition of Warehousing Maturity Date on the date of such termination. Lender’s determination of the Warehousing Commitment Fee for any period is conclusive and binding, absent manifest error.
Warehousing Commitment Fees. 3-5 3.5. Term Loan Non-Usage Fees........................................3-5 3.6. Agent's Fee.....................................................3-6 3.7. Loan Package Fees, Wire Fees, Warehousing Fees..................3-6 3.8. Miscellaneous Fees and Charges..................................3-6 3.9. [Intentionally Omitted].........................................3-6 3.10. Method of Making Payments......................................3-6 3.11. Illegality.....................................................3-7 3.12. Increased Costs; Capital Requirements..........................3-7 3.13. Withholding Taxes..............................................3-8 4. COLLATERAL................................................................4-1 4.1. Grant of Security Interest......................................4-1 4.2. Maintenance of Collateral Records...............................4-3 4.3. Release of Security Interest in Pledged Loans and Pledged Securities....................................................4-3 4.4. Release of Security Interest in Other Eligible Assets...........4-4 4.5. Collection and Servicing Rights.................................4-4 4.6. Return of Collateral at End of Commitments......................4-5 4.7. Delivery of Collateral Documents................................4-5 4.8. Borrowers Remains Liable........................................4-5 4.9. Further Assurance...............................................4-6 5. CONDITIONS PRECEDENT......................................................5-1 5.1. Initial Advance.................................................5-1 5.2. Each Advance....................................................5-3 5.3. Force Majeure...................................................5-3 6. GENERAL REPRESENTATIONS AND WARRANTIES....................................6-1 6.1. Place of Business...............................................6-1
Warehousing Commitment Fees. 13 4.5. Agent's Fees .................................................. 13 4.6. Term Loan Non-Usage Fees ...................................... 13 4.7.