Sources of Funds to Pay Interest Clause Samples
The 'Sources of Funds to Pay Interest' clause defines where and how the borrower will obtain the money needed to make interest payments on a loan or financial obligation. Typically, this clause outlines acceptable sources such as operating revenues, proceeds from asset sales, or external financing, and may restrict the use of certain funds to ensure compliance with lender requirements. Its core practical function is to provide transparency and assurance to the lender that the borrower has reliable means to meet interest obligations, thereby reducing the risk of default.
Sources of Funds to Pay Interest. Any interest payable by NYSERDA pursuant to Exhibit shall be paid only from the same accounts, funds, or appropriations that are lawfully available to make the related Payment.