Procedure for Advances Clause Samples
The "Procedure for Advances" clause outlines the specific steps and requirements a borrower must follow to request and receive advances under a loan agreement. Typically, this clause details the notice period required before an advance can be made, the documentation or certifications that must accompany a request, and any conditions precedent that must be satisfied. For example, the borrower may need to submit a written request specifying the amount and date of the advance, and confirm that no default has occurred. The core function of this clause is to ensure a clear, orderly process for disbursing loan funds, reducing misunderstandings and protecting both parties by setting out transparent procedures.
POPULAR SAMPLE Copied 1 times
Procedure for Advances. (a) On any Business Day during the Revolving Period, the Borrower may request that the Lenders make Advances, subject to and in accordance with the terms and conditions of Sections 2.01 and 2.02 and subject to the provisions of Section 3.02 hereof.
(b) Each Advance shall be made upon delivery (which may be by electronic mail) of an irrevocable Notice of Borrowing from the Borrower to the Administrative Agent (who shall deliver a copy to each Lender), no later than 10:00 a.m., New York time, one Business Day immediately prior to (or such shorter time as agreed to by the Administrative Agent in consultation with the Lenders, including, in the case of a request for a Swing Loan, not later than 10:00 a.m. (New York City time) on) the proposed date of such Advance (which shall be a Business Day), in the form of a Notice of Borrowing. Each Notice of Borrowing shall include a duly completed Borrowing Base Certificate (updated to the date such Advance is requested and giving pro forma effect to the Advance requested and the use of the proceeds thereof), and shall specify:
(i) the aggregate amount of such Advance, which amount shall not cause the Advances Outstanding to exceed the Maximum Availability; provided that the amount of such Ad ▇▇▇▇▇ must be at least equal to $500,000 or an integral multiple of $100,000 in excess thereof;
(ii) the proposed date of such Advance; and
(iii) a representation that all conditions precedent for an Advance described in Article III hereof have been satisfied. If Swing Lender has not elected to make a Swing Loan pursuant to Section 2.02(f), no later than 1:00 p.m. on the date of each Advance, upon satisfaction of the applicable conditions set forth in Section 3.02, each Lender shall, in accordance with instructions received from the Borrower or the Administrative Agent, make available to the Borrower, in same day funds, an amount equal to such ▇▇▇▇▇▇’s Commitment Percentage of such Advance, by payment into the account which the Borrower has designated in writing.
(c) [Reserved]
(d) Subject to Section 2.17 and the other terms, conditions, provisions and limitations set forth herein, the Borrower may borrow, repay or prepay and reborrow Advances without any penalty, fee or premium on and after the Closing Date and prior to the end of the Revolving Period.
(e) The obligation of each Lender to remit its Pro Rata Share of any Advance shall be several from that of each other Lender and the failure of any Lender to so make such amount ava...
Procedure for Advances. (a) During the Reinvestment Period, the Lenders will make Advances on any Business Day at the request of the Borrower, subject to and in accordance with the terms and conditions of Sections 2.01 and 2.02 and subject to the provisions of Article III hereof.
(b) Each Advance shall be made on a same-day basis on irrevocable written notice from the Borrower to the Administrative Agent and each Lender Agent, with a copy to the Collateral Agent and the Collateral Custodian, in the form of a Notice of Borrowing; provided that such Notice of Borrowing shall be deemed to have been received by the Administrative Agent and each Lender Agent on a Business Day if delivered no later than 2:00 p.m. on the proposed date of such Advance and, if not delivered by such time, shall be deemed to have been received on the following Business Day. Each Notice of Borrowing shall include a duly completed Borrowing Base Certificate (updated to the date such Advance is requested and giving pro forma effect to the Advance requested and the use of the proceeds thereof), and shall specify:
(i) the aggregate amount of such Advance, which amount shall not cause the Advances Outstanding to exceed the Borrowing Base; provided that, except with respect to an Advance pursuant to Section 2.02(f) or, in the case of an Advance to be applied to fund any Delayed Draw Loan Asset, the amount of such Advance must be at least equal to $500,000;
(ii) the proposed date of such Advance;
(iii) a representation that all conditions precedent for an Advance described in Article III hereof have been satisfied;
(iv) the amount of cash that will be funded by the Transferor into the Unfunded Exposure Account in connection with any Delayed Draw Loan Asset funded by such Advance, if applicable; and
(v) whether such Advance should be remitted to the Borrower or the Unfunded Exposure Account. On the date of each Advance, upon satisfaction of the applicable conditions set forth in Article III, each Lender shall, in accordance with instructions received by Administrative Agent or the applicable Lender Agent from the Borrower, either (i) make available to the Borrower, in same day funds, an amount equal to such Lender’s Pro Rata Share of such Advance, by payment into the account which the Borrower has designated in writing or (ii) remit in same day funds an amount equal to such Lender’s Pro Rata Share of such Advance into the Unfunded Exposure Account, as applicable; provided that, with respect to an Advance funded purs...
Procedure for Advances. (a) During the Reinvestment Period, the Lenders will make Advances on any Business Day at the request of the Borrower, subject to and in accordance with the terms and conditions of Sections 2.01 and 2.02 and subject to the provisions of Article III hereof.
(b) The Borrower shall request an Advance by delivering irrevocable written notice in the form of a Notice of Borrowing, in which the Borrower shall specify whether the Advance shall be a LIBOR Advance or a Base Rate Advance. For each LIBOR Advance, the Borrower shall deliver a Notice of Borrowing to the Administrative Agent and each Lender (with a copy to the Collateral Custodian and the Account Bank) no later than 1:00 p.m. at least three Business Days before the Business Day on which the LIBOR Advance is to be made; provided that if such Notice of Borrowing is delivered later than 1:00 p.m. on such Business Day, such Notice of Borrowing shall be deemed to have been received on the following Business Day. For each Base Rate Advance, the Borrower shall deliver an irrevocable written notice in the form of a Notice of Borrowing to the Administrative Agent and each Lender no later than 1:00 p.m. one Business Day prior to the Business Day on which such Base Rate Advance is to be made; provided that if such Notice of Borrowing is delivered later than 1:00 p.m. on such Business Day, such Notice of Borrowing shall be deemed to have been received on the following Business Day. The Borrower or the Servicer shall post all Loan Agreements and other loan documents and information with respect to each proposed Eligible Loan Asset, if any, to a Deal Interactive (or other replacement) website to which the Administrative Agent and each Lender has access. Each Notice of Borrowing shall include a duly completed Borrowing Base Certificate (updated to the date such Advance is requested and giving pro forma effect to the Advance requested and the use of the proceeds thereof), and shall specify:
(i) the aggregate amount of such Advance, which amount shall not cause the Advances Outstanding to exceed the Borrowing Base; provided that, except with respect to an Advance pursuant to Section 2.02(f), the amount of such Advance must be at least equal to $500,000;
(ii) the proposed Advance Date and whether such Advance will be a LIBOR Advance or a Base Rate Advance;
(iii) a representation that all conditions precedent for an Advance described in Article III hereof have been satisfied;
(iv) the amount of cash that will be funded by ...
Procedure for Advances. A. At the time of each Advance, there shall exist no default or Event of Default hereunder, and all representations and warranties made herein shall be true and correct on and as of each Advance Date with the same effect as if made on that date. Each Advance (other than under a Swing Loan) shall be made pursuant to a Draw Request submitted by Borrower to Agent on behalf of the Lenders. Each Advance under a Swing Loan shall be made pursuant to a Swing Loan Draw Request submitted by Borrower to Agent and Swing Lender (if a party other than Agent).
B. With respect to each Draw Request:
(I) Not later than 10:00 A.M. (Central time) three (3) Euro Business Days prior to the Advance Date if any portion of the requested Advance is desired by Borrower to be a LIBOR Rate Advance, and one Business Day prior to the Advance Date if any portion of the requested Advance is to be a Loan Rate Advance, Borrower shall deliver to Agent a request, in writing, designating the amount of such portion (in the minimum amount of $1,000,000.00 and in integral multiples of $100,000.00 in excess thereof (provided that a $100,000 increment may consist in part of a Tranche A Advance and in part of a Tranche B Advance if the Advance will cause the Total Revolving Outstandings to exceed the Tranche A Loan Availability)) and designating the initial LIBOR Rate Period applicable thereto. If no such request is made by Borrower with respect to any Advance, the entire Advance shall be deemed to be a Loan Rate Advance.
(II) On each Advance Date, if all the terms and conditions of this Agreement have been complied with by Borrower, to the satisfaction of Agent, if no default or Event of Default exists hereunder, and if Agent has approved the Draw Request, each Lender shall advance to Agent its Commitment Percentage of the principal amount of the requested Advance by delivering to Agent a wire transfer of funds. Agent shall then forward the Advance to Borrower. All Advances actually so made shall be deemed to be loans to Borrower, shall reduce the available amount of the Revolving Loan Commitment, and shall bear interest at the rates provided herein from the date so advanced.
(III) All Advances shall constitute Tranche A Advances to the extent that the then Total Revolving Outstandings are less than or equal to the Tranche A Loan Availability, subject to subsequent reallocation in accordance with Section 2.B.3.G. All Advances in excess of the Tranche A Loan Availability shall constitute Tranche B A...
Procedure for Advances. Any request for an Advance must be given so as to be received by the Lender not later than 1:00 p.m. (Minneapolis time) two Eurodollar Business Days prior to the date of the requested Advance if the Advance is requested as a Eurodollar Rate Advance and not later than 1:00 p.m. on the date of the requested Advance if the Advance is requested as a Reference Rate Advance. Each request for an Advance shall specify (i) the date of the Advance, (ii) the amount of the Advance to be made on such date which shall be in a minimum amount of $5,000 for Reference Rate Advances, or $500,000 for Eurodollar Rate Advances or, if more in either case, an integral multiple thereof, (iii) whether such Advance is to be funded as a Reference Rate Advance or a Eurodollar Rate Advance, and (iv) in the case of a Eurodollar Rate Advance, the duration of the initial Interest Period applicable thereto.
Procedure for Advances. Unless Borrower has previously entered into a separate auto borrow or similar cash management service with Lender, Borrower may request Advances by telephone through its employees or agents, as hereinafter provided. Each Advance request must be received by Lender not later than 1:00 p.m. (Eastern Standard time) on the date the Advance is to be made and must specify the amount of the Advance. Lender shall deposit the Advance into Borrower’s Operating Account if Borrower is entitled to the Advance, subject to the terms and conditions of this Agreement. If Borrower has entered into a separate auto borrow or similar cash management service with Lender, then the provisions of such service shall control with respect to the procedures for making Advances to Borrower. Lender shall have the right to terminate such auto borrow or similar cash management service at any time, as determined by Lender in its sole and absolute discretion.
Procedure for Advances. (a) Subject to the terms and conditions set forth in this Agreement, and provided that no Default or Event of Default shall then exist, Lender hereby agrees to make Advance(s) to Borrower under the Credit Facility upon L▇▇▇▇▇'s receipt of an Advance Request, as hereinafter provided in this Section 2.5. Upon Lender's receipt of an Advance Request made, or deemed to have been made, by Borrower, in accordance with Section 2.4 hereof, Lender shall have until the close of business on the Business Day immediately following L▇▇▇▇▇'s receipt of such Advance Request to disburse the proceeds of any such Advance so requested, in accordance with Section 2.6 of this Agreement; provided, that, such Advance Request shall be made, or shall be deemed to have been made, on or before 11:00 a.m. Eastern time on the Business Day immediately preceding the Business Day of the date of the Advance requested thereby; and provided further, that, an ACH may take one (1) additional Business Day to post.
(b) Notwithstanding, and without in any way limiting, the foregoing provisions of clause (a) of this Section 2.5, as an accommodation to Borrower, Lender may, in its sole discretion, permit Borrower to submit Advance Request(s), and any corresponding instructions, authorizations, agreements or reports to Lender, via electronic transmittal (i.e., by means of electronic communication reasonably acceptable to Lender, in its sole discretion). Lender shall have no liability to Borrower for any loss or damage suffered by Borrower, its employees, agents, members, or designees, as a result of, due to or arising in connection with L▇▇▇▇▇'s election to honor any Advance Request (including, without limitation, L▇▇▇▇▇'s execution of any instructions, authorizations or agreements or reliance upon any reports) communicated to Lender electronically and purporting to have been sent to Lender by Borrower, nor shall Lender have any duty to verify the origin of any such communication or the authority of the Person sending it.
Procedure for Advances. By delivering a completed Advance Request to the Administrative Agent on or before 10:00 a.m., Cleveland time, on a Business Day, the Company may from time to time irrevocably request, on a same-day basis, that an Advance be made in a minimum amount of one million dollars ($1,000,000) and in integral multiples of one hundred thousand dollars ($100,000) above such minimum, or in the maximum unused or available amount of the Commitment. The Administrative Agent shall provide notice of such Advance Request to the Lenders, on or before 12:00 noon, Cleveland time, and before 3:00 p.m., Cleveland time, on such Business Day each Lender shall deposit with the Agent same day funds in an amount equal to such Lender's Pro Rata Percentage of the requested Advance. Such deposit will be made to an account which the Administrative Agent shall specify from time to time by notice to the Lenders. Subject to Section 8.03 of this Agreement, the Administrative Agent shall make an Advance available to the Borrowers by wire transfer of same-day funds to the accounts the Company shall have specified in its Advance Request. If an Advance Request is delivered to the Administrative Agent after 10:00 a.m., Cleveland time, then the Administrative Agent and the Lenders shall be obligated to fund such Advance on the next Business Day.
Procedure for Advances. Agent shall give Owner notice in accordance with Sections 4, 5, 6 and 7 hereof of its irrevocable request for an advance pursuant to this Agreement, specifying a Business Day on which such advance is to be made and the amount of the advance. Not later than 11:00 a.m. New York time on the date for the advance specified in such notice, provided that all conditions to that advance have been satisfied, Owner shall provide to Agent, or to such other party as may be designated by Agent, in immediately available funds, the amount of the advance then requested.
Procedure for Advances. The Bank or the Company shall advance all Expenses incurred by the Indemnitee, other than amounts for which the Indemnitee becomes liable under a judgment, to the Indemnitee within 65 days following the delivery of a written request therefor by the Indemnitee to the Bank or the Company if the Disinterested Directors on the Board of Directors, if any, or if there are none, then the Board of Directors of the Bank or the Company has made a good faith determination that the Indemnitee ultimately may become entitled to indemnification hereunder or otherwise. The Indemnitee hereby undertakes to repay such amount advanced if, and only if and to the extent that, it shall ultimately be determined that the Indemnitee is not entitled to be indemnified by the Bank or the Company as authorized hereby.