Common use of Additional Advance Clause in Contracts

Additional Advance. (a) On the date hereof, the Bank shall make a Revolving Loan in the principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00) under Facility 2 to the Borrower. (b) The Bank may, in its sole and absolute discretion, make additional Revolving Loans under Facility 2 to the Borrower as follows: (a) a Revolving Loan in the principal amount of One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) after receipt of the financial statements required by Section 6.1(a) for the Fiscal Quarter ending March 31, 2019 and (b) a Revolving Loan in the principal amount of One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) after receipt of the financial statements required by Section 6.1(a) for the Fiscal Quarter ending June 30, 2019. The Bank shall make each such additional Revolving Loan to the Borrower or notify the Borrower of its decision not to make such additional Revolving Loan within 15 days after the Bank’s receipt of the financial statements for such Fiscal Quarters. Notwithstanding Section 2.1(c), there shall be no cash collateral requirement for any Revolving Loans made pursuant to this Section 4. All principal amounts advanced by the Bank pursuant to this Section 4, together with accrued interest, shall be due and payable on November 1, 2019. Prior to November 1, 2019, the Borrower shall be obligated to make monthly payments of accrued interest only on Revolving Loans made under Facility 2 pursuant to this paragraph.