Excess Borrowing Clause Samples

The Excess Borrowing clause sets limits on the amount of debt a party, typically a borrower, is permitted to incur beyond an agreed threshold. In practice, this clause may require the borrower to obtain lender consent before taking on additional loans or other financial obligations that would exceed the specified cap. Its core function is to protect the lender by preventing the borrower from becoming over-leveraged, thereby reducing the risk of default and ensuring the borrower's financial stability throughout the term of the agreement.
Excess Borrowing. Permit the Advances to violate any of the applicable Revolving Conditions.
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Excess Borrowing. To the extent permitted by the Senior Credit Agreement and subject to Article VIII hereof, if at any time, the aggregate principal amount of Loans exceed the aggregate Commitments the Borrower shall forthwith (but after first making any payment required pursuant to Section 2.9 of the Senior Credit Agreement, and subject to Section 8.5 thereof,) pay the full amount of such excess or deficiency, as the case may be, together with accrued interest.
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Excess Borrowing. Borrowers hereby agree not to request a Revolving Loan if after giving effect to such Revolving Loan and the contemporaneous uses of the proceeds thereof, the Loan Parties’ cash and Cash Equivalents would exceed $1,000,000. (b) Clause (c) of Article 7 of the Credit Agreement is hereby amended and restated in its entirety as follows:
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Excess Borrowing. Excess Borrowing" shall mean the aggregate of all outstanding Advances minus the Advance Limit.
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Excess Borrowing. If at any time, (i) the aggregate principal amount of Outstanding Amounts exceed the aggregate Commitments or (ii) a Borrowing Base Deficiency exists and is continuing, the Borrower shall forthwith pay the full amount of such excess or deficiency, as the case may be, together with accrued interest. If any such excess or deficiency, as the case may be, remains after repayment in full of the aggregate outstanding Loans, the Borrower agrees to promptly cash collateralize the Obligations by paying to the Administrative Agent immediately available funds in an amount necessary to eliminate such excess or deficiency, as the case may be, for deposit in the Cash Collateral Account, which funds shall be maintained in, and disbursed from, the Cash Collateral Account in accordance with the provisions of Section 2.9(c) (Application of Funds During Cash Dominion Period) and Section 9.3 (Cash Collateralization of Letters of Credit).
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Excess Borrowing. Borrowers hereby agree not to request a Revolving Loan if after giving effect to such Revolving Loan and the contemporaneous uses of the proceeds thereof, the Loan Parties' cash and Cash Equivalents would exceed $1,000,000. For purposes of this Section 5.16, the Loan Parties' cash and Cash Equivalents shall exclude (a) funds in the Term Loan Priority Account, (b) amounts necessary to cover checks and wire transfers that have been issued in accordance with the Budget or to be issued within 5 Business Days of the applicable request for a Revolving Loan and otherwise in accordance with the Budget, (c) any Net Cash Proceeds of Permitted Dispositions held in the Deposit Account referenced in Section 2.4(e)(ii)(C) for reinvestment in accordance with Section 2.4(e) and Schedule 5.21, and (d) cash proceeds of EAC's Account with Account Debtor Sterlite in an amount not to exceed $2,500,000, so long as (i) such cash proceeds are held in EAC's Deposit Account number XX0015 with YES BANK in India and (ii) an order satisfactory to Required Lenders amending that certain Order entered by the Bankruptcy Court on November 10, 2016 at Docket No. 41 (I) Authorizing Continued Use of Existing Business Forms and Records; (II) Authorizing Maintenance of Existing Corporate Bank Accounts and Cash Management System, (III) Waiving Certain U.S. Trustee Requirements, and (IV) Authorizing Continuation of Intercompany Transactions With Section 364(A) Administrative Priority is entered by the Bankruptcy Court.
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Excess Borrowing. If a Cash Dominion Period exists, Borrowers hereby agree not to request a Revolving Loan if after giving effect to such Revolving Loan and the contemporaneous uses of the proceeds thereof, the Loan Parties’ cash and Cash Equivalents would exceed $7,500,000.
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Excess Borrowing. Borrower hereby agrees not to request a Revolving Loan if after giving effect to such Revolving Loan and the contemporaneous uses of the proceeds thereof, the Loan Parties’ cash and Cash Equivalents would exceed $5,000,000.
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Excess Borrowing. Permit the Advances or Non-Revolving Loans to violate any of the applicable Non-Revolving Conditions.
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Related to Excess Borrowing

  • Borrowing Upon receipt of Proper Instructions, the Custodian shall deliver securities of a Portfolio to lenders or their agents, or otherwise establish a segregated account as agreed to by the applicable Fund on behalf of such Portfolio and the Custodian, as collateral for borrowings effected by such Portfolio, provided that such borrowed money is payable by the lender (a) to or upon the Custodian's order, as Custodian for such Portfolio, and (b) concurrently with delivery of such securities.

  • Revolving Borrowings Subject to the terms and conditions set forth herein, each Revolving Lender severally agrees to make loans (each such loan, a “Revolving Loan”) to the Borrower, in Dollars, from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s Revolving Commitment; provided, however, that after giving effect to any Revolving Borrowing, (i) the Total Revolving Outstandings shall not exceed the Revolving Facility, and (ii) the Revolving Exposure of any Lender shall not exceed such Revolving Lender’s Revolving Commitment. Within the limits of each Revolving Lender’s Revolving Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow Revolving Loans, prepay under Section 2.05, and reborrow under this Section 2.01(b). Revolving Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein; provided, however, any Revolving Borrowings made on the Closing Date or any of the three (3) Business Days following the Closing Date shall be made as Base Rate Loans unless the Borrower delivers a Funding Indemnity Letter not less than three (3) Business Days prior to the date of such Revolving Borrowing.

  • Proposed Borrowing This Agreement represents the Borrower’s request to borrow New Term Loans or increase Dollar Revolving Commitments from the New Lenders as follows (the “Proposed Borrowing”): SECTION 1. Business Day of Proposed Borrowing: , SECTION 2. Amount of Proposed Borrowing: $ SECTION 3. Interest rate option: a. ABR Loan(s) b. Eurocurrency Loan(s) with an initial Interest Period of months

  • Procedure for Borrowing Swingline Loans The Borrower shall give the Agent and the Swingline Lender notice pursuant to a Notice of Swingline Borrowing or telephonic notice of each borrowing of a Swingline Loan. Each Notice of Swingline Borrowing shall be delivered to the Swingline Lender no later than 3:00 p.m. on the proposed date of such borrowing. Any such notice given telephonically shall include all information to be specified in a written Notice of Swingline Borrowing and shall be promptly confirmed in writing by the Borrower pursuant to a Notice of Swingline Borrowing sent to the Swingline Lender by telecopy on the same day of the giving of such telephonic notice. On the date of the requested Swingline Loan and subject to satisfaction of the applicable conditions set forth in Article V. for such borrowing, the Swingline Lender will make the proceeds of such Swingline Loan available to the Borrower in Dollars, in immediately available funds, at the account specified by the Borrower in the Notice of Swingline Borrowing not later than 4:00 p.m. on such date.

  • Revolving Loan The Borrower shall repay to the Lenders in full on the date specified in clause (a) of the definition of “Revolving Termination Date” the aggregate principal amount of the Revolving Loans and Swing Loans outstanding on the Revolving Termination Date.