Voluntary Conversion and Continuation of Advances Sample Clauses
The "Voluntary Conversion and Continuation of Advances" clause allows a borrower to change the type or terms of an outstanding loan advance, such as converting from a floating to a fixed interest rate or extending the loan period, at their discretion. Typically, the borrower must provide advance notice to the lender and comply with any conditions or limitations set out in the loan agreement, such as minimum amounts or specific timing requirements. This clause provides flexibility for borrowers to manage their debt obligations in response to changing financial needs or market conditions, helping them optimize interest costs or cash flow.
Voluntary Conversion and Continuation of Advances. (a) Prior to the Facility Maturity Date, the Borrowers shall have the option with respect to any outstanding Advance, (i) so long as no Event of Default has occurred and is continuing, to Convert all or any portion thereof which constitutes Base Rate Advances to Eurodollar Rate Advances on any Interest Payment Date; (ii) to Convert all or any portion of any outstanding Eurodollar Rate Advances to Base Rate Advances upon the expiration date of the Interest Period applicable to such Eurodollar Rate Advances; or (iii) so long as no Event of Default has occurred and is continuing, to Continue all or any portion of such Eurodollar Rate Advances as Eurodollar Rate Advances upon the expiration of the Interest Periods applicable to any outstanding Eurodollar Rate Advances. The Borrowers' right to Convert or Continue Advances pursuant to this Section 2.07 shall be understood to include the right (i) to divide any Borrowing into two or more Borrowings having aggregate principal equal to the principal of such Borrowing or (ii) to combine any two or more Borrowings into a single Borrowing having principal equal to the aggregate principal of such Borrowings. If, after giving effect to any combination or division of Borrowings as contemplated by this Section 2.07(a), the aggregate unpaid principal amount of the Advances constituting a Borrowing is less than $5,000,000, those Advances may not be Converted into or Continued as Eurodollar Rate Advances.
(b) To Convert or Continue any Advance under Section 2.07(a), the Borrowers shall deliver a Notice of Conversion/Continuation to the Administrative Agent not later than 2:00 p.m. (New York City time) on (i) the fourth Business Day prior to the date of the proposed Conversion/Continuation if such Advance is to be Converted into or Continued as a Eurodollar Rate Advance or if the Advance is to be Converted from a Eurodollar Rate Advance into any other Type of Advance, and (ii) the Business Day prior to the date of the proposed Conversion/Continuation in any other case. If a Notice of Conversion/Continuation is transmitted by telecopy, the Borrowers shall promptly provide written confirmation thereof to the Administrative Agent. If the Administrative Agent receives such a Notice of Conversion/Continuation at or before 4:00 p.m. (New York City time) on a Business Day, it shall provide each Agent with a copy thereof on such Business Day, and otherwise it shall provide each Agent with a copy thereof at or before 1:00 p.m. (New Yo...
Voluntary Conversion and Continuation of Advances