Advances and Note Clause Samples

The "Advances and Note" clause defines the terms under which a lender provides funds to a borrower in advance, typically before certain conditions or milestones are met, and documents the borrower's obligation to repay these funds through a promissory note. This clause outlines the process for requesting and disbursing advances, specifies the maximum amount available, and details the repayment schedule and interest terms associated with the note. Its core practical function is to formalize the borrowing arrangement, ensuring both parties understand the conditions for advances and the borrower's repayment obligations, thereby reducing the risk of disputes over loan terms.