Conditions to the Extension of Credit Clause Samples

The "Conditions to the Extension of Credit" clause defines the specific requirements that must be satisfied before a lender is obligated to provide funds to a borrower. Typically, these conditions may include the borrower delivering certain documents, meeting financial covenants, or ensuring that no default has occurred under the agreement. By setting clear prerequisites for disbursement, this clause protects the lender by ensuring that credit is only extended when the borrower meets agreed-upon standards, thereby reducing the risk of default and ensuring responsible lending.
Conditions to the Extension of Credit. Section 3.01 Conditions Precedent to Initial Extension of Credit 58 Section 3.02 Conditions to All Extensions of Credit 59
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Conditions to the Extension of Credit. The obligation of the L/C Provider to cause the issuance of any Letter of Credit (or to execute and deliver any Cash Collateral Agreement) shall be subject to (a) the L/C Provider’s receipt of the Borrower’s Request for Issuance (or similar request given in connection with a previously executed and delivered Cash Collateral Agreement), (b) no Lease Event of Default or Event of Loss, and no event that with the passage of time or giving of notice or both would constitute a Lease Event of Default or Event of Loss, shall have occurred and be continuing under the Operative Documents, and (c) the Borrower shall not be in default with respect to its obligations under this Agreement, including without limitation its payment obligations under Section 2.06 and Section 4.01 hereof; provided further , however, that if the Borrower shall not have paid in full on any Rent Payment Date (as defined in the Depositary Agreement) the amounts that would otherwise have been due and payable under Section 2.06 or Section 4.01 on or before such date but for the terms of the Depositary Agreement, then the condition precedent in this clause (c) shall not have been satisfied.
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Conditions to the Extension of Credit. The agreement of the Lender to make the extension of credit requested to be made by it is subject to the satisfaction, prior to or concurrently with the making of such extension of credit on the Closing Date, of the following conditions precedent, provided that the Lender may waive any of the following conditions precedent as it may determine in its sole discretion:
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Conditions to the Extension of Credit 
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Related to Conditions to the Extension of Credit

  • Conditions to Initial Extension of Credit The agreement of each Lender to make the initial extension of credit requested to be made by it is subject to the satisfaction, prior to or concurrently with the making of such extension of credit on the Closing Date, of the following conditions precedent:

  • Conditions to Each Extension of Credit The agreement of each Lender to make any extension of credit requested to be made by it on any date (including its initial extension of credit) is subject to the satisfaction of the following conditions precedent:

  • CONDITIONS OF INITIAL EXTENSION OF CREDIT The obligation of Bank to extend any credit contemplated by this Agreement is subject to the fulfillment to Bank's satisfaction of all of the following conditions:

  • Conditions Precedent to Initial Extension of Credit The obligation of each Lender to make its initial Advance to any Borrower, and the obligation of each Fronting Bank to issue its initial Letter of Credit, are subject to the conditions precedent that on or before the date of any such Extension of Credit: (a) The Administrative Agent shall have received the following, each dated the same date (except for the financial statements referred to in paragraph (iv)), in form and substance satisfactory to the Administrative Agent and (except for any Note) with one copy for each Fronting Bank and each Lender: (i) This Agreement, duly executed by each of the parties hereto, and Notes requested by any Lender pursuant to Section 2.18(d), duly completed and executed by each Borrower and payable to such Lender; (ii) Certified copies of the resolutions of the Board of Directors of each Borrower approving this Agreement and the other Loan Documents to which it is, or is to be, a party and of all documents evidencing any other necessary corporate action with respect to this Agreement and such Loan Documents; (iii) A certificate of the Secretary or an Assistant Secretary of each Borrower certifying (A) the names and true signatures of the officers of such Borrower authorized to sign each Loan Document to which such Borrower is, or is to become, a party and the other documents to be delivered hereunder and (B) that attached thereto are true and correct copies of the Organizational Documents of such Borrower, in each case as in effect on such date; (iv) Copies of all the Disclosure Documents (it being agreed that those Disclosure Documents publicly available on the SEC’s ▇▇▇▇▇ Database or on FE’s website no later than the Business Day immediately preceding the date of such Extension of Credit will be deemed to have been delivered under this clause (iv)); (v) An opinion of ▇▇▇▇▇ Day, special counsel for each Borrower; (vi) A certificate of an Authorized Officer of each Borrower certifying the satisfaction of the conditions specified in Section 3.02(i) with respect to such Borrower; and (vii) Such other certifications, opinions, financial or other information, approvals and documents as the Administrative Agent, any Fronting Bank or any other Lender may reasonably request, all in form and substance satisfactory to the Administrative Agent, such Fronting Bank or such other Lender (as the case may be). (b) The Administrative Agent shall have received the Fee Letters, duly executed by each of the parties thereto. (c) The Borrowers shall have paid, or caused to be paid, all of the fees payable in accordance with the Fee Letters. (d) Prior to or concurrently with the making of such initial Extension of Credit, all amounts outstanding under the Existing FE Credit Agreement, in each case, whether for principal, interest, fees or otherwise, shall have been paid in full, all commitments to lend thereunder shall have been terminated, and the Existing FE Credit Agreement shall have been terminated. (e) The Administrative Agent shall have received all documentation and information required by regulatory authorities under applicable “know your customer” and anti- money laundering rules and regulations, including without limitation the Patriot Act (including, for the avoidance of doubt, Beneficial Ownership Certifications), to the extent such documentation or information is requested by the Administrative Agent on behalf of the Lenders prior to the date hereof.

  • Conditions to Initial Extensions of Credit The agreement of each Lender to make the initial extension of credit requested to be made by it is subject to the satisfaction, immediately prior to or concurrently with the making of such extension of credit on the Closing Date, of the following conditions precedent: