Additional Loans and Commitments Clause Samples
The "Additional Loans and Commitments" clause defines the terms under which a borrower may request, and lenders may provide, extra loan amounts or increased credit commitments beyond the original agreement. Typically, this clause outlines the process for requesting additional funds, any conditions or approvals required, and how new lenders may join or existing lenders may increase their participation. Its core function is to provide flexibility for the borrower to access more financing as needed, while ensuring that all parties understand the procedures and limitations, thereby facilitating future funding without renegotiating the entire agreement.
Additional Loans and Commitments. (a) Subject to the satisfaction of all of the conditions set forth in Section 6 hereof, each Lender severally agrees to make a Loan to the Borrower on the Third Amendment Funding Date (as defined below) in an amount equal to the commitment amount set forth next to such Lender’s name on Annex 1 hereto under the caption “Third Amendment Loans” (the “Third Amendment Loans”) and (b) subject to the satisfaction of the conditions set forth in Section 6.02 of the Credit Agreement (including, without limitation, the condition specified in Section 6.02(i) of the Credit Agreement) and the other provisions of the Term Loan Documents, each Lender severally agrees, and each Existing Lender reaffirms its commitment, to make Additional Term Loans to the Borrower pursuant to the Credit Agreement from time to time on any Business Day after the Third Amendment Funding Date and on or prior to the Commitment Termination Date in an amount equal to the commitment amount set forth next to such Lender’s name on Annex 1 hereto under the caption “Remaining Commitment after giving effect to the making of the Existing Term Loans and Third Amendment Term Loans” (the “Third Amendment Commitment”). Immediately upon the borrowing of the Third Amendment Loans on the Third Amendment Funding Date, (i) the Third Amendment Loans shall be added to, and made a part of, the Loans under the Credit Agreement (as amended hereby), (ii) the Third Amendment Loans shall constitute “Loans” under and as defined in the Credit Agreement (as amended hereby) and (iii) the Third Amendment Commitment of each Lender shall constitute such Lender’s “Commitments” under and as defined in the Credit Agreement (as amended hereby).