Common use of Disbursement of the Loan Clause in Contracts

Disbursement of the Loan. After receipt by the Commission of this Agreement fully executed by all parties hereto, and provided that the Debtor is not in default on its obligations to the Commission as of the date first written above, the Commission shall disburse the Loan to the Debtor on one of the following schedules to be selected by the Debtor: Schedule 1 – In Arrears. Not more than two (2) installments as requested by the Debtor in writing at such times as the Debtor may elect, subject to the reasonable approval of the Commission. The amount of each disbursement shall be limited to that portion of the Loan which has been earned by the Company based upon information described in Section 5 or 6 of this Agreement, as applicable, when the same is delivered to and approved by the Commission in its sole discretion. Schedule 2 – In Advance. Not more than two (2) installments as requested by the Debtor in writing at such times as the Debtor may elect, subject to the reasonable approval of the Commission. The amount of each disbursement shall not be limited to that portion of the Loan which has been earned by the Company; however, each such disbursement shall only be made after the Debtor Certification attached hereto as Exhibit B has been completed by the Debtor and delivered to and approved by the Commission in its sole discretion. Fifty percent (50%) of the Loan is allocated for the Company’s taxable asset obligation set forth in Section 4 of this Agreement and fifty percent (50%) of the Loan is allocated for the Company’s employment obligation set forth in Section 3 of this Agreement. Unless otherwise agreed to in writing by all parties to this Agreement, Debtor shall disburse all Loan proceeds to the Company or for the Company’s benefit within 30 days of receipt of Loan proceeds from the Commission or return the undisbursed proceeds to the Commission.

Disbursement of the Loan. After receipt (a) Where the Loan facility is being availed by the Commission Borrower(s) for purchase of the Equipment(s), the Loan will be disbursed directly to the manufacturer / dealer or distributor /owner of the Equipment(s) and all Loan(s) thus disbursed/ paid by FICCL to the manufacturer / dealer or distributor shall be deemed to be Loan granted to and availed by the Borrower(s). Where the Loan is being availed by the Borrower(s) against hypothecation of the Equipment(s) owned by the Borrower(s), the amount of Loan will be disbursed to the Borrower(s). The amount of the Loan will be disbursed by FICCL subject to compliance by the Borrower(s) with the terms and conditions provided in this Agreement. The Loan may be disbursed in full or in installments or in such other manner as may be decided by FICCL from time to time and the decision of FICCL in this regard shall be final, conclusive and binding on the Borrower(s). The Loan amount shall be disbursed to the Borrower(s) net of all initial payments towards Pre Installment Interest, advance installment, documentation charges, Loan Processing charges, premium for insurance( if applicable) etc. If so required by FICCL, the Borrower(s) shall acknowledge receipt of each disbursement, in the form required by FICCL. Notwithstanding anything contained herein, the Borrower(s) shall avail of the Loan within 30 days from the date of this Agreement fully executed by all parties hereto, and provided that the Debtor is failing which FICCL shall not in default on its obligations be under any obligation to the Commission as of the date first written above, the Commission shall grant / disburse the Loan to the Debtor on one of the following schedules to be selected by the Debtor: Schedule 1 – In Arrears. Not more than two (2) installments as requested by the Debtor in writing at such times as the Debtor may elect, subject to the reasonable approval of the Commission. The amount of each disbursement shall be limited to that portion of the Loan which has been earned by the Company based upon information described in Section 5 or 6 of this Agreement, as applicable, when the same is delivered to and approved by the Commission in its sole discretion. Schedule 2 – In Advance. Not more than two (2) installments as requested by the Debtor in writing at such times as the Debtor may elect, subject to the reasonable approval of the Commission. The amount of each disbursement shall not be limited to that portion of the Loan which has been earned by the Company; however, each such disbursement shall only be made after the Debtor Certification attached hereto as Exhibit B has been completed by the Debtor and delivered to and approved by the Commission in its sole discretion. Fifty percent (50%) of the Loan is allocated for the Company’s taxable asset obligation set forth in Section 4 of this Agreement and fifty percent (50%) of the Loan is allocated for the Company’s employment obligation set forth in Section 3 of this Agreement. Unless otherwise agreed to in writing by all parties to this Agreement, Debtor shall disburse all Loan proceeds to the Company or for the Company’s benefit within 30 days of receipt of Loan proceeds from the Commission or return the undisbursed proceeds to the CommissionBorrower(s).