Conditions Precedent to Advances Clause Samples
The "Conditions Precedent to Advances" clause defines the specific requirements that must be satisfied before a lender is obligated to disburse funds to a borrower under a loan agreement. Typically, these conditions may include the delivery of certain documents, evidence of compliance with covenants, or confirmation that no default has occurred. By setting these prerequisites, the clause ensures that the lender's risk is minimized and that all necessary legal and financial safeguards are in place before any loan proceeds are advanced.
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Conditions Precedent to Advances. Borrower agrees that, notwithstanding anything to the contrary contained herein or in the other Loan Documents, Lender’s obligation to fund each Advance shall be conditioned upon the satisfaction by Borrower of each of the following conditions, on and as of the funding date for the applicable Advance (the “Advance Conditions”):
(a) no event constituting a ▇▇▇▇▇▇▇▇▇▇ Land Event of Default under a ▇▇▇▇▇▇▇▇▇▇ Land Loan shall have occurred and be continuing;
(b) Lender (or the Title Company, acting at Lender’s direction) shall have received the original Deed of Trust covering the Projects being funded by the Loan, duly executed by Borrower for the benefit of Lender and Lender shall have received the original Note for the Loan, duly executed by Borrower;
(c) Lender shall have received all Required Documents relating to the Loan and all Closing Deliveries required to be delivered to Lender as further described in Section 6.1;
(d) Lender shall have received an Advance Request properly completed and duly executed by a Principal Officer, accompanied by all required attachments;
(e) the representations and warranties made in this Agreement and the other Loan Documents by Borrower and the Borrower-Related Parties and in all certificates and other documents delivered pursuant thereto, shall be true and correct in all material respects on and as of the date of funding;
(f) all of the covenants and agreements contained in this Agreement and the other Loan Documents to be complied with and performed as of the date hereof by Borrower and the Borrower-Related Parties have been duly complied with and performed on and as of the date of funding;
(g) no event constituting an Event of Default, shall have occurred and be continuing, as determined by Lender pursuant to Section 11.1;
(h) a Principal Officer shall have executed and delivered to Lender an Officer’s Certificate dated the date of the Advance, and all matters certified in the Officer’s Certificate shall be true and correct in all respects;
(i) on and as of the date of funding, all statements contained in all Loan Documents and all other certificates, statements and data furnished to Lender by or on behalf of Borrower or in connection with the transactions contemplated by this Agreement or any of the other Loan Documents (including all of the documents and information required to be delivered to Lender by Section 6.1 and Section 7.1) shall be true and complete in all material respects, and there are no facts or events a...
Conditions Precedent to Advances. (a) The Initial Purchasers shall not be obligated to make an Advance on any Advance Date unless the following conditions have been satisfied or waived by the Initial Purchasers:
(i) The representations and warranties of the Issuer in Section 3.25 of the Indenture and of the Servicer and the Originator, as applicable, set forth in Sections 3.01, 3.02, 3.04 and 3.06 of the Sale and Servicing Agreement are true and correct on and as of such Advance Date, before and after giving effect to such Advance;
(ii) The Investment Period Termination Date shall not have occurred and as of the date of the Advance Request, (A) the aggregate Outstanding Loan Balance of Loans that became Defaulted Loans since the Amendment Date is less than $25,000,000 and (B) no Rapid Amortization Event has occurred since the Amendment Date;
(iii) No Event of Default, Rapid Amortization Event or Servicer Default has occurred since the Amendment Date or will occur, after giving effect to such Advance;
(iv) After giving effect to such Advance and to the application of proceeds therefrom, the Aggregate Outstanding Note Balance will not exceed the Borrowing Base;
(v) After giving effect to such Advance and to the application of proceeds therefrom, the Aggregate Outstanding Note Balance shall not exceed the Commitment Amount;
(vi) The Issuer shall have caused the Required Loan Documents for any Loans being acquired on such Advance Date to be delivered to the Custodian in accordance with the Sale and Servicing Agreement;
(vii) To the extent the Issuer is directing that Principal Proceeds be withdrawn from the Collection Account and deposited to the Principal Reinvestment Account on such Advance Date, the Issuer reasonably believes that funds on deposit in the Collection Account will be sufficient to pay Required Payments on the next Payment Date; and
(viii) At the time of any Advance, the Notes have a rating of no lower than “A (low) (sf)” from the Rating Agency.
(b) To the extent the Initial Purchasers shall fund an Advance on an Advance Date, it shall be deemed to have agreed that each of the foregoing conditions have been satisfied or waived as to such Advance and Advance Date.
Conditions Precedent to Advances. Notwithstanding any other provision of this Agreement, no Loan proceeds, Revolving Credit Loans, advances or other extensions of credit under the Loan shall be disbursed under this Agreement unless the following conditions have been satisfied or waived immediately before such disbursement:
(a) The representations and warranties on the part of Borrower contained in Article IV of this Agreement shall be true and correct in all respects at and as of the date of disbursement or advance, as though made on and as of such date (except to the extent that such representations and warranties expressly relate solely to an earlier date and except that the references in Section 4.7 to financial statements shall be deemed to be a reference to the then most recent annual and interim financial statements of Borrower furnished to Lender pursuant to Section 6.1).
(b) No Event of Default or event which, with the giving of notice of the lapse of time, or both, could become an Event of Default shall have occurred and be continuing or would result from the making of the disbursement or advance.
(c) No adverse change in the condition (financial or otherwise), properties, business, or operations of Borrower shall have occurred and be continuing with respect to Borrower since the date of this Agreement.
Conditions Precedent to Advances. Lender’s obligation to make any Advance under this Loan Agreement and the other Loan Documents shall be subject to the conditions precedent that, as of the date of such Advance and after giving effect thereto (i) all representations and warranties made to Lender in this Loan Agreement and the other Loan Documents shall be true and correct, as of and as if made on such date, (ii) no material adverse change in the financial condition of Borrower since the effective date of the most recent financial statements furnished to Lender by Borrower shall have occurred and be continuing, (iii) no event has occurred and is continuing, or would result from the requested Advance, which with notice or lapse of time, or both, would constitute an Event of Default (as hereinafter defined), and (iv) Lender’s receipt of all Loan Documents appropriately executed by Borrower and all other proper parties.
Conditions Precedent to Advances. The obligation of each Lender to make Advances hereunder is subject to satisfaction of the following conditions precedent:
Conditions Precedent to Advances. Lender's obligation to make any Advances or to provide any other financial accommodations to or for the benefit of Borrower hereunder shall be subject to the conditions precedent that as of the date of such advance or disbursement and after giving effect thereto (a) all representations and warranties made to Lender in this Agreement and the Related Documents shall be true and correct as of and as if made on such date, (b) no material adverse change in the financial condition of Borrower or any Guarantor since the effective date of the most recent financial statements furnished to Lender, or in the value of any Collateral, shall have occurred and be continuing, (c) no event has occurred and is continuing, or would result from the requested advance or disbursement, which with notice or lapse of time, or both, would constitute an Event of Default, (d) no Guarantor has sought, claimed or otherwise attempted to limit, modify or revoke such Guarantor's guaranty of any Loan, and (e) Lender has received all Related Documents appropriately executed by Borrower and all other proper parties.
Conditions Precedent to Advances. The obligations of the Lender under this Agreement to make Advances are subject to the following conditions precedent, all of which must be fulfilled prior to or concurrently with an Advance under this Agreement:
(a) The Borrower shall have executed and delivered the Notes and the Mortgages, satisfying the Loan-to-Value Ratio, to the Lender.
(b) The Lender has received all documents required by this Agreement to be delivered to the Lender and such documents shall be in full force and effect.
(c) All representations or warranties contained in this Agreement are true and correct.
(d) There is no Event of Default and no condition, event or act, which with notice or lapse of time, or both, would constitute an event of default.
(e) All legal proceedings and documents in connection with the borrowing under this Agreement are satisfactory in form and substance to the Lender and its counsel.
(f) The Lender shall have received all fees, costs and expenses required to be paid by the Borrower under the terms of this Agreement.
Conditions Precedent to Advances. The obligation of the Bank to honor any Request for Advance is subject to the following conditions precedent:
(a) The representations and warranties of the District contained in Article VI hereof shall be true and correct on and as of the date of such Advance, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 7.02, the representations and warranties contained in Section 6.07 hereof shall be deemed to refer to the most recent statements furnished pursuant to Section 5.05(a) hereof.
(b) No Default or Event of Default shall exist, or would result from such proposed Advance or from the application of the proceeds thereof.
(c) The Bank shall have received a Request for Advance in accordance with the requirements hereof.
(d) After giving effect to any Advance, the aggregate principal amount of all Advances outstanding hereunder shall not exceed the Available Commitment.
(e) Such Advance shall not violate any order, judgment or decree of any court or authority of competent jurisdiction or any provision of law as then in effect.
(f) The Bank shall not have received notice (either verbal or written) from the District, or Bond Counsel that any opinion delivered pursuant to Section 7.01(c)[(ii)] hereof may no longer be relied upon.
(g) The Bank shall have received, in form and substance satisfactory to it, such other assurances, certificates, documents or consents related to the foregoing as the Bank reasonably may require. Each Request for Advance submitted by the District shall be deemed to be a representation and warranty that the conditions specified in Sections 7.02(a) and (b) have been satisfied on and as of the date of the applicable Advance.
Conditions Precedent to Advances. In addition to the other Conditions Precedent set forth in this Agreement, the Postpetition Lender’s obligation to make each Advance shall be subject to the following further conditions precedent:
Conditions Precedent to Advances. The obligation of the Bank to make any Advance is subject to the Borrower's full compliance with each of the following conditions precedent to the satisfaction of the Bank in its sole and absolute discretion, unless otherwise waived in writing by the Bank in its sole and absolute discretion: