The Advances and the Letters of Credit Clause Samples
The "Advances and the Letters of Credit" clause defines the terms under which a lender provides funds (advances) and issues letters of credit to a borrower. Typically, this clause outlines the conditions for requesting advances, the maximum amounts available, and the procedures for drawing on letters of credit, which may be used to guarantee payment to third parties on behalf of the borrower. By clearly specifying these mechanisms, the clause ensures both parties understand the process for accessing funds and the obligations associated with letters of credit, thereby reducing the risk of misunderstandings and facilitating smooth financial transactions.
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The Advances and the Letters of Credit. Section 2.01 The Advances; Extension of Initial Maturity Date. ------------------------------------------------
The Advances and the Letters of Credit. (a) The Revolving Credit Advances. Subject to the terms and conditions set forth herein, (i) each Revolving Credit Lender severally agrees to make revolving credit loans denominated in Dollars to the Borrower pursuant to Section 2.02 (a “Revolving Credit Advance”) from time to time, on any Business Day until the Termination Date, in an aggregate principal amount of $1,000,000 or an integral multiple of $100,000 in excess thereof (other than a Borrowing the proceeds of which shall be used solely to repay or prepay in full outstanding Swing Line Advances or outstanding Letter of Credit Advances) and shall consist of Revolving Credit Advances made simultaneously by the Revolving Credit Lenders ratably according to their Revolving Credit Commitments; provided, however, that the aggregate principal amount of all such Revolving Credit Advances (together with the aggregate principal amount of all Swing Line Advances then outstanding plus the aggregate Available Amount of all Letters of Credit outstanding at such time) shall not exceed the lesser of (x) the Revolving Credit Facility at such time or (y) the Borrowing Base then in effect, subject to the Administrative Agent’s authority, in its sole discretion to make Protective Advances pursuant to the terms of Section 2.01(d). Within the limits of each Revolving Credit Lender’s Unused Revolving Credit Commitment in effect from time to time, the Borrower may borrow under this Section 2.01(a), prepay pursuant to Section 2.06(a) and reborrow under this Section 2.01(a).
The Advances and the Letters of Credit. Section 2.1 The Advances.................................................... 23 Section 2.2
The Advances and the Letters of Credit. Section 2.01 The Advances. Section 2.02 Method of Borrowing Section 2.03 Fees Section 2.04 Reduction of the Commitments Section 2.05 Repayment of Advances Section 2.06 Interest, Late Payment Fee Section 2.07 Prepayments Section 2.08 Breakage Costs Section 2.09 Increased Costs Section 2.10 Payments and Computations Section 2.11 Taxes Section 2.12 Illegality Section 2.13 Letters of Credit Section 2.14 Determination of Borrowing Base Section 2.15 Bank Replacement Section 2.16 Sharing of Payments, Etc.
The Advances and the Letters of Credit. Section 2.01. Tranche A and Tranche B Advances;
The Advances and the Letters of Credit. (a) The Term B-1 Advances. Each Term B-1 Lender severally agrees, on the terms and conditions hereinafter set forth, to make a single advance (a “Term B-1 Advance”) in Dollars to the Borrower on the Effective Date in an amount not to exceed such Lender’s Term B-1 Commitment at such time. The Term B-1 Borrowing shall consist of Term B-1 Advances made simultaneously by the Term B-1 Lenders ratably according to their Term B-1 Commitments. Amounts borrowed under this Section 2.01(a) and repaid or prepaid may not be reborrowed. Term B-1 Borrowings may be made as Base Rate Advances or Eurocurrency Rate Advances.
The Advances and the Letters of Credit. (a) The Term A Advances. Each Term A Lender severally agrees, on the terms and conditions hereinafter set forth, to make a single advance (a “Term A Advance”) to the Borrower on the Effective Date in an amount not to exceed such Lender’s Term A Commitment. The Term A Borrowing shall consist of Term A Advances made simultaneously by the Term A Lenders ratably according to their Term A Commitments whereupon the Term A Commitments shall be reduced to zero in accordance with Section 2.05(b). Amounts borrowed under this Section 2.01(a) and repaid or prepaid may not be reborrowed.
The Advances and the Letters of Credit. (a) The Term A Advances. Each Term A Lender has made a Term A Advance pursuant to the Existing Credit Agreement. Any Term A Advance which is repaid or prepaid may not be reborrowed.
The Advances and the Letters of Credit. Section 2.01. The Advances and the Swing Loans...........................21 Section 2.02.
The Advances and the Letters of Credit. Section 2.01. Tranche A and Tranche B Advances; Extension of Tranche A Maturity Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Section 2.02.