Advances to Pay Interest Clause Samples

Advances to Pay Interest. (a) Included in the Budget are amounts allocated to pay interest on the Loans. Subject to the conditions set forth below, Borrower shall request advances to be made on each Interest Payment Date for the purpose of paying the interest due or to become due at such time, in which event Lenders shall be authorized and are hereby directed to disburse the amount of such interest by crediting the bank account maintained by Borrower with Agent. No separate fund or account shall be created for such interest. In no event shall Lenders be obligated to make any advance if the request for such advance does not contain a direction to pay interest on the Loans due at the time of such advance unless Borrower has paid interest to Lenders directly from a source other than the Loan proceeds. Any such request for an advance of interest shall be accompanied by a direction by Borrower to Lenders to charge such bank account for the amount of such interest then due and advanced to Borrower by Lenders. Notwithstanding the foregoing, Borrower hereby requests Lenders to make advances to pay such interest on the day when each interest payment is due in the amount of interest then due, by crediting such amount to the bank account maintained by Borrower with Agent and charging such account for such interest. Lenders may comply with the foregoing request at any time, notwithstanding any failure by Borrower to make a more specific request.

Advances to Pay Interest. Borrower hereby irrevocably authorizes Lender to disburse proceeds of the Loan to pay interest accrued on the Note as it comes due.

Advances to Pay Interest. Borrower hereby irrevocably authorizes Lender to make Advances to pay interest when due on the Loan from the portion of the Commitment allocated in the Budget for interest to pay interest (the “Interest Reserve”) when due on the Loan. Lender may make such Advances notwithstanding that a Default or Unmatured Default may have occurred. If funds are not available from the Interest Reserve to pay interest when due on the Loan, Borrower shall pay such interest from its own funds. Cash flow from the Project (after payment of Property Operating Expenses) must be used to pay interest on the Loan before any Advances are made to pay interest.

Advances to Pay Interest. During the Construction Period for a Project Loan, if any, on each date which is one Business Day prior to any Interest Payment Date (unless otherwise requested by the Borrower at least one Business Day prior to such Interest Payment Date by written notice to the Administrative Agent) the Borrower shall be deemed to have requested a borrowing pursuant to Section 2.02(a) of a Revolving Credit Loan with a Base-Rate Option in an amount equal to the aggregate amount of interest due and payable on such date with respect to the principal portion of the Loans allocated to the related Project Loan; provided, that if (a) such Interest Payment Date falls upon the same day as the last day of an Interest Period and (b) the Borrower shall have given the Administrative Agent a renewal/conversion notice described in Section 2.02(a) requesting continuation of the Euro-Rate Borrowing Tranche with respect to which the Interest Period is ending on such Interest Payment Date, on the day which is three Business Days prior to such Interest Payment Date, the Borrower shall be deemed to have requested a borrowing pursuant to Section 2.02(a) of a Loan with a Euro-Rate Option in an amount equal to the aggregate amount of interest due and payable on such date with respect to the principal portion of the Loans allocated to the related Project Loan. One Business Day, in the case of a Loan with a Base-Rate Option or three Business Days, in the case of a Loan with a Euro-Rate Option, prior to such Interest Payment Date, the Borrower shall deliver to the Administrative Agent a notice indicating the amount of such interest. The Borrowing Date with respect to any such borrowing shall be the relevant Interest Payment Date; provided, that the making of the Loans pursuant to such borrowing shall be subject to satisfaction of the applicable conditions precedent set forth in Article VII and the proceeds of such borrowing shall be applied solely to pay the aggregate amount of interest due and payable on such date with respect to the Loans. On the relevant Borrowing Date, the aggregate principal amount of the Euro-Rate Borrowing Tranche with respect to which the Interest Period is being continued or the Base Rate Borrowing Tranche, as the case may be, shall be deemed to be increased by the amount of the new Loan made on such day.

Advances to Pay Interest. The portion of the Commitment allocated in the Budget for interest on the Loans shall be held by Lender as an unfunded interest reserve, and Borrower hereby authorizes the Lender to make Advances thereof to pay interest when due on the Loans. Such authorization is irrevocable and no further direction or authorization shall be required for Lender to make such Advances. Lender may make such Advances notwithstanding that a Default or Unmatured Default may have occurred under the terms of this Agreement or any other Loan Document. If funds are not available from the interest reserve to pay interest when due on the Loans, Borrower shall pay such interest from its own funds. Nothing in this provision shall prevent Borrower from paying interest on the Loans from its own funds. Cash flow from the Project must be used to pay interest on the Loan before any Advances are made to pay interest.