Bank Elections to Increase Clause Samples
The 'Bank Elections to Increase' clause allows a bank or lender to increase its commitment or participation in a loan facility, typically within the parameters set by the loan agreement. In practice, this means that if the borrower requests additional funding or if there is an option to upsize the facility, the bank can choose to provide more funds, often by notifying the borrower and other lenders within a specified timeframe. This clause provides flexibility for both the borrower, who may need more capital, and the bank, which can decide whether to expand its exposure, thereby facilitating efficient management of funding needs and lender participation.
Bank Elections to Increase. Each Bank shall notify the Administrative Agent within such time period whether or not it agrees to increase its Commitment and, if so, whether by an amount equal to, greater than, or less than its pro rata share of such requested increase. Any Bank not responding within such time period shall be deemed to have declined to increase its Commitment.
Bank Elections to Increase. Each Bank shall notify the Administrator within such time period whether or not it agrees to make an Incremental Term Loan and, if so, the amount of its commitment of such requested Incremental Term Loan. Any Bank not responding within such time period shall be deemed to have declined to make such Loan.
Bank Elections to Increase. Any Bank which is a party to this Agreement prior to such request for an Incremental Increase, at its sole discretion, may elect to provide a portion of such Incremental Increase but shall not have any obligation to provide any portion of such Incremental Increase (and it being agreed and understood that Borrower or the arrangers of such Incremental Increase shall not be required to offer to or solicit from any existing Bank the opportunity to provide a portion of such Incremental Increase). Any Bank approached to provide all or a portion of such Incremental Increase not responding in writing within the specified time period shall be deemed to have declined to participate in such Incremental Increase.