Bank Indebtedness Clause Samples
The Bank Indebtedness clause defines and governs the obligations a borrower owes to a bank, typically under a loan or credit agreement. It specifies what constitutes indebtedness, such as principal, interest, fees, and other related liabilities, and may outline the priority of repayment or restrictions on incurring additional debt. This clause ensures that all parties clearly understand the scope of the borrower's financial commitments to the bank, helping to manage risk and prevent disputes over the nature or extent of the borrower's obligations.
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Bank Indebtedness. The Stockholders hereby represent to LandCare that the aggregate outstanding balance of the Company's indebtedness to NationsBank as of July 31, 1998 was not more than $1,678,000 (the "NationsBank Debt"). As promptly as practicable after the Closing, and in any case within three business days after Closing, LandCare shall cause the Company to repay the NationsBank Debt, plus any and all costs, expenses and fees associated with the termination of such credit facility, and shall cause the prompt release of any and all liens and guaranties securing such debt.
Bank Indebtedness. The grant of a security interest in any accounts receivable of the Borrower or any of its Restricted Subsidiaries to secure Bank Indebtedness shall not be deemed a Qualified Receivables Transaction.
Bank Indebtedness. The Company has the following credit facilities: A UK credit facility allowing for an operating line of credit of 161,000 (90,000 GBP) was extended by the UK Bank. A Canadian credit facility requires the Canadian subsidiary to comply with certain financial covenants. As at July 31, 2006, the Canadian subsidiary was not in compliance therewith.
Bank Indebtedness. The Loans and other Obligations under the Loan Documents collectively constitute “Bank Indebtedness” under and as defined in the Subordinated Note Documents and “Senior Indebtedness” under and as defined in the Holdings Subordinated Note Documents, and will constitute designated senior indebtedness under, and be entitled to the benefit of the subordination provisions of, the documentation relating to any Additional Subordinated Debt or any Additional Seller Notes.
Bank Indebtedness. As soon as practicable, and in any event no later than two (2) Business Days, following the Closing Date, the Company shall:
(i) apply the proceeds from the sale of the Initial Notes hereunder to the purchase of the assets of SolBright pursuant to an agreement requiring SolBright to discharge the Bank Indebtedness and deliver or cause to be delivered to the Security Agent the following:
(A) a release executed by W▇▇▇▇ Fargo Bank and confirming that the security granted in respect of the Bank Indebtedness is of no force and effect; and
(B) within 5 days, evidence of the discharge of all UCC financing statements registered against SolBright in respect of the Bank Indebtedness;
(ii) execute and deliver to the Security Agent the Company Pledge Agreement;
(iii) deliver to the Security Agent certificates evidencing the Company's 100-percent ownership of the securities of each of Subsidiaries along with executed and undated transfer powers in respect thereof;
(iv) such other documents as may be required by the Security Agent (in its discretion except if instructed by the Majority Holders).
Bank Indebtedness. The Shareholders shall have either (i) furnished evidence satisfactory to the Purchaser that all outstanding Bank Indebtedness of the Company has been repaid in full or (ii) requested Purchaser apply that portion of the purchase price to be paid at the Closing to the repayment in full of all outstanding Bank Indebtedness.
Bank Indebtedness. The Institute is authorized to borrow up to $1.0 million under its legislation. The Institute has established a line of credit of $800,000 with a bank and assigned its accounts receivable as collateral. It incurs interest at the bank’s prime rate which was 2.25% (2009 – 2.5%).
Bank Indebtedness. The Bank and its Subsidiaries shall have paid all Bank Indebtedness.
Bank Indebtedness. As the accounts receivable portion of the Assets transferred to the Purchaser at the Closing are collected by the Purchaser in the Ordinary Course of Business (and in any case, no later than three (3) months following the Closing Date), the Purchaser or the Parent shall pay to the Seller in cash in Canadian dollars, by check or wire transfer, the Bank Indebtedness, if any, paid at the Closing pursuant to Section 1.3(a)(iv).
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