Common use of Financing Procedures Clause in Contracts

Financing Procedures. The following procedures shall be employed in determining the availability of financing for Franchisees under this Agreement: (a) In the event a Franchisee shall indicate an interest in obtaining financing for any of the purposes described in section 1.6, ColorTyme shall provide the Franchisee with a credit application and other credit documentation, to be developed by TFC and approved by ColorTyme, and shall assist the Franchisee in completing such credit application and other credit documents. (b) After the Franchisee has completed the credit application and provided the other credit documents specified by TFC, if such credit application and other credit documents are acceptable to ColorTyme, ColorTyme shall promptly forward the executed credit application and other credit documents to TFC at its office in Reno, Nevada. (c) If, following completion of its review of such credit application and other credit documents and its credit investigation, TFC determines that it will provide the financing requested, it shall so notify the Franchisee and ColorTyme and, upon receipt of such additional closing documents as TFC reasonably determines to be necessary for the approval of the credit, TFC shall either (i) establish a revolving line of credit for the Franchisee in accordance with the terms of this Agreement (each such line of credit is referred to herein as a "Line of Credit"), or (ii) provided TFC has previously or contemporaneously established a Line of Credit for the Franchisee, make a term loan to the Franchisee in accordance with the terms of this Agreement (each such term loan is referred to herein as a "Term Loan"). For purposes of this Agreement, the obligations of a Franchisee to TFC under a Line of Credit and/or a Term Loan are collectively referred to as a "Receivable."

Financing Procedures. The following procedures shall be employed in determining the availability of financing for Franchisees under this Agreement: (a) In the event a Franchisee shall indicate an interest in obtaining financing for any of the purposes described in section Section 1.6, ColorTyme shall provide the Franchisee with a credit application and other credit documentation, in form and substance acceptable to be developed by TFC Lender and approved by ColorTyme, and ColorTyme shall assist the Franchisee in completing such credit application and other credit documents. (b) After the Franchisee has completed the credit application and provided the other credit documents specified by TFCLender, if such credit application and other credit documents are acceptable to ColorTyme, ColorTyme shall promptly forward the executed credit application and other credit documents to TFC Lender at its office in RenoDallas, NevadaTexas. (c) If, following completion of its review of such credit application and other credit documents and its credit investigation, TFC Lender determines that it will provide the financing requested, it shall so notify the Franchisee and ColorTyme and, upon receipt of such additional closing documents as TFC Lender reasonably determines to be necessary for the approval of the credit, TFC Lender shall either (i) establish a revolving line of credit for the Franchisee in accordance with the terms of this Agreement (each such line of credit is referred to herein as a "Line of Credit"), or (ii) provided TFC Lender has previously or contemporaneously established a Line of Credit for the Franchisee, make a term loan to the Franchisee in accordance with the terms of this Agreement (each such term loan is referred to herein as a "Term Loan"). For purposes of this Agreement, the obligations of a Franchisee to TFC Lender under a Line of Credit and/or a Term Loan are collectively referred to as a "Receivable."