Banks and Borrower Clause Samples
The "Banks and Borrower" clause defines the relationship, rights, and obligations between the lending banks and the borrower under a loan agreement. It typically outlines how the banks will coordinate in providing funds, how the borrower must communicate with the banks, and the procedures for making payments or requests. For example, it may specify which bank acts as the agent for the group or how notices should be delivered. This clause ensures clear communication and coordination between all parties, reducing the risk of misunderstandings and facilitating smooth administration of the loan.
Banks and Borrower. Within five Business Days after its receipt of any such notice from Agent, Borrower, at its own expense, shall execute and deliver to Agent, in exchange for the surrendered Note or Notes, a new Note or Notes payable to the order of such assignee in the appropriate principal amount(s) evidencing such assignee's assigned Loans and Commitments, and, if the assignor Bank has retained a portion of its Loans and Commitments, a new Note or Notes payable to the order of such assignor in the appropriate principal amount(s) evidencing such assignor's Loans and Commitments retained by it. Such new Note(s) shall be dated the date of the surrendered Note(s) which they replace and shall otherwise be in substantially the form of the surrendered Notes, as appropriate.
Banks and Borrower. If Agent provides Borrower with such written notice, Borrower shall repay in full the then outstanding principal amount of each of its LIBOR Loans from such Bank, together with all accrued and unpaid interest thereon, on either (a) the last day of the then current Interest Period applicable to such LIBOR Loan if such Bank may lawfully continue to maintain and fund such LIBOR Loan to such day or (b) within fifteen (15) days of the receipt of such notice if such Bank may not lawfully continue to fund and maintain such LIBOR Loan to such day, provided that Borrower shall not be obligated to reimburse any such Bank for any losses or expenses as provided in Section 5.6. Concurrently with repaying each LIBOR Loan of such Bank, Borrower may borrow a Base Rate Loan in an equal principal amount from such Bank, and, if Borrower so elects, such Bank shall make such a Base Rate Loan to Borrower.
Banks and Borrower. If Agent provides Borrower with such written notice, Borrower shall repay in full the then outstanding principal amount of each of its LIBOR Loans from such Bank, together with all accrued and unpaid interest thereon, on either (a) the last day of the then current Interest Period applicable to such LIBOR Loan if such Bank may lawfully continue to maintain and fund such LIBOR Loan to such day or (b) within fifteen (15) days of the receipt of such notice if such Bank may not lawfully continue to fund and maintain such LIBOR Loan to such day. Concurrently with repaying each LIBOR Loan of such Bank, Borrower may borrow a Base Rate Loan in an equal principal amount from such Bank, and, if Borrower so elects, such Bank shall make such a Base Rate Loan to Borrower.