Advances after the Initial Advance Clause Samples
The "Advances after the Initial Advance" clause defines the terms under which a borrower may request and receive additional funds from a lender following the initial disbursement of a loan. Typically, this clause outlines the conditions, procedures, and limitations for subsequent advances, such as requiring the borrower to meet certain financial covenants or provide updated documentation before each new advance is approved. Its core practical function is to provide a structured process for ongoing access to loan funds while protecting the lender by ensuring continued compliance with agreed terms.
Advances after the Initial Advance. Following receipt and approval of a Draw Request and all supporting documentation and information reasonably required by Administrative Agent, and satisfaction of conditions set forth on Exhibit “C-1” attached hereto, Administrative Agent will determine the amount of the requested advance of Loan proceeds that will be the subject of such advance (each such advance being an “Additional Advance”) Lenders shall make in accordance with this Agreement. All Additional Advances shall be used to pay or reimburse Borrower for costs and expenses incurred by Borrower for Tenant Improvements, Leasing Commissions and Capital Improvements.