Application to the Revolving Facility Sample Clauses
The 'Application to the Revolving Facility' clause defines how the terms and conditions of a contract specifically apply to the revolving credit facility provided under the agreement. It typically outlines which provisions are relevant to the revolving facility, such as borrowing procedures, repayment terms, and usage limits, distinguishing them from other types of facilities that may be included in the same contract. This clause ensures that both parties understand the specific rules governing the revolving facility, thereby promoting clarity and preventing disputes over which terms apply to which parts of the agreement.
Application to the Revolving Facility. Each prepayment of Loans pursuant to the foregoing provisions of this Section 2.05 shall be applied first, ratably to pay accrued and unpaid interest in respect of the outstanding L/C Borrowings and the outstanding Swing Line Loans, Overadvances and Agent Advances then being prepaid, second, ratably to prepay the principal of any outstanding Unreimbursed Amounts and any outstanding Swing Line Loans, Overadvances and Agent Advances, if any, third, ratably to the outstanding Revolving Facility Loans (other than Overadvances and Agent Advances), and, fourth, to Cash Collateralize the remaining L/C Obligations; in each case, without permanent reduction of the Revolving Facility Commitments, and the amount remaining, if any, after the prepayment in full of all Unreimbursed Amounts, Swing Line Loans and Revolving Facility Loans outstanding at such time and the Cash Collateralization of the remaining L/C Obligations in full may be retained by the Borrowers for use in the Ordinary Course of Business; provided that, upon the drawing of any Letter of Credit that has been Cash Collateralized, the funds held as Cash Collateral shall be applied (without any further action by or notice to or from any Borrower or any other Loan Party) to reimburse the applicable L/C Issuer or the applicable Lenders, as applicable.