Acquisition Line Sample Clauses

Acquisition Line. In addition to the Line of Credit, Lender shall make available to Borrower a non-revolving acquisition line of credit in the maximum principal amount of $1,500,000 (the "Acquisition Line"). Prior to the Acquisition Line Termination Date and so long as no Event of Default (or event that with the giving of notice or the passage of time or both would constitute an Event of Default) has occurred and is in existence hereunder, Lender shall advance proceeds under the Acquisition Line to Borrower upon Borrower's request on a non-revolving basis, subject to the following terms and conditions: (a) The purpose of the Acquisition Line shall be to finance Permitted Acquisitions by Borrower. The proceeds by the Acquisition Line shall be used for no other purpose. (b) All advances under the Acquisition Line for a particular Permitted Acquisition shall be evidenced by a separate term promissory note bearing interest at the Acquisition Line Interest Rate (collectively the "Acquisition Notes"). Interest only under the Acquisition Notes shall be payable monthly, in arrears, until consummation of the subject Permitted Acquisition. Thereafter, principal and interest shall be due and payable in monthly installments based upon an amortization period to be determined by Lender in its sole discretion, but in no event greater than thirty-six (36) months. (c) Prior to the initial advance under the Acquisition Line, Borrower shall pay to Lender a non-refundable commitment fee of $11,250. (d) As used herein, "Permitted Acquisitions" shall mean Acquisitions which have the prior written approval of Lender, which approval may be granted or withheld in Lender's sole discretion. Without limiting the foregoing, Permitted Acquisitions shall be subject to the following terms and conditions:

Acquisition Line. Interest on so much of the principal balance as may be outstanding from time to time under an Acquisition Note, shall accrue at a floating rate equal to the 30-day LIBOR Rate, plus the corresponding Margin (as calculated in the table below). The Margin applicable to a particular Project Loan shall be determined from the following table upon establishment to the satisfaction of GMAC-CM of both the corresponding loan to value ratio and the corresponding Debt Service Ratio for the Project: Loan to Value Ratio Debt Service Ratio Interest Rate ------------------- ------------------ ------------- Margin less than 75% greater than 1.40 LIBOR + 2.50% between 75% and 80% between 1.40 and 1.30 LIBOR + 2.75% between 80% and 85% between 1.30 and 1.20 LIBOR + 3.25% between 85% and 90% between 1.20 and 1.15 LIBOR + 3.75% greater than 90% less than 1.15 LIBOR + 4.00% The Borrower acknowledges (i) the interest rate applicable to a Project Loan shall change as the LIBOR Rate is from time to time adjusted, and (ii) the corresponding Margin, notwithstanding post-ratelock fluctuations of a Project's loan to value ratio or debt service ratio, shall remain fixed for the term of the particular Project Loan.

Acquisition Line. The Borrower may apply to the Lenders for one or more loans (collectively the "Acquisition Line") to the Borrower for the acquisition of businesses, in the aggregate principal amount not to exceed ($5,000,000), as long as the following criteria, and the general provisions for advances under this Agreement, are met to the satisfaction of the Agent: (a) the acquisition target is in the same business as MSC; (b) after giving effect to the acquisition, total Consolidated senior Funded Debt to EBITDA is no more than 4.0 to 1.0 on a proforma basis; (c) after giving effect to the acquisition, unused Availability shall be an amount to be determined by the Agent as sufficient in the exercise of its reasonable commercial judgment; (d) the Borrower is in compliance with all loan covenants and such acquisition would not give rise to a Default or an Event of Default; and (e) the business to become acquired becomes a Borrower under this Agreement and its assets become part of the security for the Obligations. Commitment to any one or more advances under the Acquisition Line shall be subject to the Lenders' respective approval processes, no commitment to lend being made at this time. Repayment and other terms and conditions for the Acquisition Line shall be determined by the mutual agreement of the Borrower, the Agent and the Lenders at the time of funding.

Acquisition Line. As collateral security for the Acquisition Line, a second priority security interest in favor of GMAC-CM in the following: (i) All of the right, title and interest of the Pledgors in and to the accounts receivable of the Pledgors generated by the Projects financed under the Acquisition Line, whether now existing or hereafter arising, subject only to the security interest in favor of First American; (ii) All of the proceeds therefrom, including, without limitation, all proceeds of any policies of insurance on any of the foregoing. In addition to the other Collateral securing the Acquisition Line and described herein, each Project Loan and all obligations in connection therewith shall be secured (and documented in form and substance acceptable to GMAC-CM), as follows: (1) A deed of trust/mortgage or other appropriate security instruments granting to GMAC- CM a first priority lien on the applicable Project real property and assets, including furniture, fixtures, Equipment, Inventory, General Intangibles, licenses, Permits, Medicaid contracts, Medicare contracts and all other personal property of the Project, whether now owned or hereafter acquired. (2) A collateral assignment in favor of GMAC-CM of all right, title and interest in and to management contracts related to the management of the Project financed by the Project Loan. (3) A collateral assignment by AFI to GMAC-CM of the Subsidiary Notes executed by DLC (or any other Subsidiary which owns a Project financed with the proceeds of the Acquisition Line) in favor of AFI, evidencing the intercompany loans from AFI to DLC (or such other Subsidiary), as contemplated by Section 2.3 of this Agreement. To effectuate such collateral assignment, AFI hereby assigns, grants and conveys to GMAC-CM, as collateral security for all obligations of the Borrower and the Guarantors in connection with funds advanced under the Acquisition Line, a security interest in all right, title and interest of AFI in and to all Subsidiary Notes, whether now existing, or hereafter executed and delivered, together with all proceeds arising therefrom. To perfect GMAC-CM's security interest in all Subsidiary Notes, at the time of the closing of each Project Loan, AFI agrees to endorse the corresponding Subsidiary Note to the order of GMAC-CM (with recourse) and to deliver the original Subsidiary Note to GMAC-CM. (4) Such other documents or instruments as GMAC-CM d▇▇▇▇ ▇▇▇essary to evidence or secure the Acquisition Line. (5) All of the pro...

Acquisition Line. Except as set forth in Section 2.3(b), the Acquisition Advances shall bear interest, on the outstanding daily balance thereof, as set forth in the LIBOR/Prime Referenced Rate Addendum.

Acquisition Line. (a) Lender hereby establishes for the benefit of Borrowers an Acquisition Line (the "Acquisition Line") to be used by Borrowers from time to time to finance the intangible portion of acquisitions by Borrowers up to the maximum principal sum of Fifteen Million Dollars ($15,000,000) at any one time outstanding. Each requested Advance under the Acquisition Line is subject to Bank's approval, must be made at least 30 days prior to the date of the requested approval and must be accompanied by the following (all in form and substance acceptable to the Bank): (i) Historical and projected financial information regarding the company to be acquired; (ii) A proforma opening balance sheet of company to be acquired; (iii) A statement of the sources and use of cash; (iv) The draft acquisition agreement or term sheet for the acquisition; and (v) All other documents and information Lender may request. (b) Each company to be acquired in connection with an Acquisition Loan must be in the same general business as the Borrowers. (c) Each Acquisition Loan shall be fully amortized over 12-48 months depending on the acquisition as determined by Lender in its sole discretion. (d) At no time shall the sum of the principal balance of Advances outstanding under the Acquisition Line and the Revolving Credit exceed the Maximum Revolving Credit Amount.

Acquisition Line. Interest accrued on so much of the principal balance of each Project Loan as may be outstanding from time to time under any Acquisition Note shall be due and payable monthly on the first day of each consecutive month, the first such payment being due and payable the first day of the month following the funding of a Project Loan. Each Project Loan made prior to October 22, 1998, shall be due and payable in full (including payment of all outstanding interest and satisfaction of any other obligations of the Borrower in connection therewith) three (3) years from the date of funding such Project Loan. Each Project Loan funded on or after October 22, 1998, shall be due and payable in full (including payment of all outstanding interest and satisfaction of any other obligations of the Borrower in connection therewith) two (2) years from the date of funding such Project Loan.

Acquisition Line. The following Section 2.5 is hereby added to the Agreement immediately following Section 2.4:

Acquisition Line. The Bank hereby agrees, subject to the terms and conditions of this Agreement, to make a Credit Loan or Credit Loans available to the Company from time to time on and after the date of this Agreement through and including the Acquisition Line Maturity Date, in an aggregate principal amount not to exceed the lesser of (i) the Acquisition Line Credit Limit and (ii) that portion of the Borrowing Base which is utilized to support advances under the Acquisition Line (which amount shall not be greater than the difference between (i) the Borrowing Base, and (ii) the aggregate principal amount outstanding under the Working Capital Line). Until the Acquisition Line Maturity Date, the Company may borrow, repay, and reborrow such Credit Loan up to the maximum amount thereof, subject to the mandatory principal reductions set forth in Sections 2.7(a) and 2.8(b) hereof and sufficient Borrowing Base availability.