Notices of Borrowing; Minimum Amounts Clause Samples
The "Notices of Borrowing; Minimum Amounts" clause defines the process by which a borrower must formally notify the lender when requesting to draw funds under a loan agreement, and sets the minimum amount that can be borrowed in each request. Typically, this clause requires the borrower to submit a written notice specifying the amount and date of the borrowing, and stipulates that each borrowing must meet or exceed a certain threshold, such as $1 million per draw. By establishing clear procedures and minimum amounts, this clause ensures administrative efficiency for the lender and prevents the borrower from making frequent, small, or impractical borrowing requests.
Notices of Borrowing; Minimum Amounts. Notice of Borrowing for (i) Lender Advances of Prime Rate Loans shall be given not later than 1:00 P.M. New York City time on the same Business Day of the proposed Borrowing and (ii) Agent Advances of Prime Rate Loans shall be given not later than 3:00 P.M. New York City time on the same Business Day of the proposed Borrowing. Notice of Borrowing for Eurodollar Rate Loans shall be given not later than 5:00 P.M. on the third Business Day prior to the proposed Borrowing.
(i) Notices of Borrowing may be given under this Section by telephone or facsimile transmission, and, if by telephone, promptly confirmed in writing substantially in the form of Exhibit E. Once given, a Notice of Borrowing is irrevocable by and binding on the Borrower.
(ii) The Borrower shall specify in each Notice of Borrowing whether the conditions for the requested Borrowing are satisfied and whether the requested Borrowing is of Prime Rate Loans or Eurodollar Rate Loans. The Borrower may request one or more Borrowings on the same Business Day. Each such Borrowing shall, unless otherwise specifically provided herein, consist entirely of Revolving Loans of the same Type and, if such Borrowing is to consist of Eurodollar Rate Loans, shall be in an aggregate amount for all Lenders of not less than $1,000,000 or an integral multiple of $100,000 in excess thereof. The right of the Borrower to choose Eurodollar Rate Loans is subject to the provisions of Section 4.8.
(iii) On or prior to the Closing Date, the Borrower provided to the Agent a list, with specimen signatures, of officers authorized to request Revolving Loans, substantially in the form attached as Exhibit O to the Original Credit Agreement. The Agent is entitled to rely upon such list until it is replaced by the Borrower. The Agent shall have no duty to verify the authenticity of the signature appearing on any Notice of Borrowing or other writing delivered hereunder and, with respect to an oral request for Revolving Loans, the Agent shall have no duty to verify the identity of any individual representing himself as one of the officers authorized to make such request on behalf of the Borrower. Neither the Agent nor any of the Lenders shall incur any liability to the Borrower as a result of acting upon any telephonic notice the Agent believes in good faith to have been given by a duly authorized officer or other individual authorized to request Revolving Loans on behalf of the Borrower or for otherwise acting in good faith.
Notices of Borrowing; Minimum Amounts. A Notice of Borrowing for (i) Bank Advances of Prime Rate Loans shall be given not later than 1:00 p.m. (New York City time), on the Business Day prior to the proposed Borrowing and (ii) Agent Advances of Prime Rate Loans shall be given not later than 1:00 p.m. (New York City time), on the Business Day prior to the proposed Borrowing. A Notice of Borrowing for Eurodollar Rate Loans shall be given not later than 5:00 p.m. (New York City time), on the third Business Day prior to the proposed Borrowing.
(A) Notices of Borrowing may be given under this Section by telephone or facsimile transmission, and, if by telephone, promptly confirmed in