CONDITIONS TO EFFECTIVENESS AND LENDING Clause Samples
The "Conditions to Effectiveness and Lending" clause defines the specific requirements that must be satisfied before a loan agreement becomes effective and funds can be disbursed to the borrower. Typically, these conditions include the delivery of certain documents, evidence of compliance with legal and financial covenants, and the fulfillment of any regulatory or third-party approvals. For example, the borrower may need to provide proof of insurance, board resolutions, or legal opinions before the lender releases any funds. This clause ensures that the lender is protected by confirming all necessary prerequisites are met, thereby reducing the risk of default or legal complications after the loan is made.
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CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01.
CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03. Sections 2.01 and 2.03 of this Agreement shall become effective on and as of the first date (the "Effective Date") on which the following conditions precedent have been satisfied:
(a) There shall have occurred no Material Adverse Change since December 31, 1997.
(b) There shall exist no action, suit, investigation, litigation or proceeding affecting the Company or any of its Subsidiaries pending or to the knowledge of the Company Threatened before any court, governmental agency or arbitrator that (i) is reasonably likely to have a Material Adverse Effect, other than the matters described on Schedule 3.01(b) hereto (the "Disclosed Litigation") or (ii) purports to affect the legality, validity or enforceability of this Agreement or any Note of the Company or the consummation of the transactions contemplated hereby, and there shall have been no adverse change in the status, or financial effect on the Company or any of its Subsidiaries, of the Disclosed Litigation from that described on Schedule 3.01(b) hereto.
(c) The Company shall have paid all accrued fees and expenses of the Agent and the Lenders in respect of this Agreement.
(d) On the Effective Date, the following statements shall be true and the Agent shall have received a certificate signed by a duly authorized officer of the Company, dated the Effective Date, stating that:
(i) The representations and warranties contained in Section 4.01 are correct on and as of the Effective Date, and
(ii) No event has occurred and is continuing that constitutes a Default.
(e) The Agent shall have received on or before the Effective Date the following, each dated such day, in form and substance satisfactory to the Agent:
(i) The Revolving Credit Notes of the Company to the order of the Lenders to the extent requested by any Lender pursuant to Section 2.17.
(ii) Certified copies of the resolutions of the Board of Directors of the Company approving this Agreement and the Notes of the Company, and of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement and such Notes.
(iii) A certificate of the Secretary or an Assistant Secretary of the Company certifying the names and true signatures of the officers of the Company authorized to sign this Agreement and the Notes of the Company and the other documents to be delivered hereunder.
(iv) Authenticated copies of the Certificate of...
CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03............................................. 54 SECTION 3.02. Conditions Precedent to Each Borrowing and Issuance....... 57 SECTION 3.03. Determinations Under Section 3.01......................... 58
CONDITIONS TO EFFECTIVENESS AND LENDING. 22 SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01.............................22
CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01.........30 SECTION 3.02. Conditions Precedent to Each Borrowing........................32 SECTION 3.03. Determinations Under Section 3.01.............................33
CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03. Sections 2.01 and 2.03 of this Agreement shall become effective on and as of the first date (the "Effective Date") on which the following conditions precedent have been satisfied:
(a) There shall have occurred no Material Adverse Change since December 31, 2000.
CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03.....................................................33
CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03 25 SECTION 3.02. Conditions Precedent to Each Revolving Credit Borrowing 27 SECTION 3.03. Conditions Precedent to Each Competitive Bid Borrowing 27 SECTION 3.04. Determinations Under Section 3.01 28
CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01. Conditions Precedent to Effectiveness of Sections 2.01 and 2.03........................... 26 SECTION 3.02. Initial Loan to Each Designated Subsidiary................................................ 28
CONDITIONS TO EFFECTIVENESS AND LENDING. SECTION 3.01. CONDITIONS PRECEDENT TO EFFECTIVENESS OF SECTIONS 2.01 AND 2.03. Sections 2.01 and 2.03 of this Agreement shall become effective as of the first date (the "EFFECTIVE DATE") on which the following conditions have been satisfied:
(a) The Agent shall have received counterparts of this Agreement executed by the Company and the Lenders or, as to any of the Lenders, advice satisfactory to the Agent that such Lender has executed this Agreement.
(b) The Company shall have paid all accrued fees and expenses of the Agent and the Lenders (including the invoiced accrued fees and expenses of counsel to the Agent).
(c) On the Effective Date, the following statements shall be true and the Agent shall have received for the account of each Lender a certificate signed by a duly authorized officer of the Company, dated the Effective Date, stating that:
(i) The representations and warranties contained in Section 4.01 are correct on and as of the Effective Date, and
(ii) No event has occurred and is continuing that constitutes a Default.
(d) The Agent shall have received on or before the Effective Date the following, each dated the Effective Date, in form and substance satisfactory to the Agent and in sufficient copies for each Lender:
(i) Certified copies of the resolutions of the Board of Directors or the Finance Committee of the Board of Directors of the Company approving this Agreement, and of all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Agreement.