Incremental Increase Effective Date and Allocations Sample Clauses
The "Incremental Increase Effective Date and Allocations" clause defines when an increase in a financial commitment, such as a loan or credit facility, becomes effective and how the additional funds are distributed among participating parties. Typically, this clause specifies the exact date on which the increased amount is available and outlines the method for allocating the new funds, for example, proportionally among lenders or according to pre-agreed terms. Its core function is to ensure clarity and coordination regarding the timing and distribution of incremental increases, thereby preventing disputes and facilitating smooth implementation of changes to financial arrangements.
Incremental Increase Effective Date and Allocations. The Administrative Agent and the Borrower shall determine the effective date (each, an “Incremental Increase Effective Date”) and the final allocation of such Incremental Increase. The Administrative Agent shall promptly notify the Borrower and the Incremental Lenders of the final allocation of such Incremental Increase (limited in the case of the Incremental Lenders to their own respective allocations thereof) and the Incremental Increase Effective Date.