Borrowings, Commitment Fees and Reduction of Commitments Clause Samples
The 'Borrowings, Commitment Fees and Reduction of Commitments' clause defines the terms under which a borrower can draw funds from a lender, the fees charged for the lender's commitment to provide those funds, and the process for reducing the amount of credit available. Typically, this clause outlines how and when the borrower may request advances, the calculation and payment of commitment fees on undrawn amounts, and the procedures for voluntarily or mandatorily reducing the lender's commitment. Its core function is to establish clear rules for accessing credit, compensating the lender for making funds available, and managing the overall size of the credit facility, thereby ensuring transparency and predictability for both parties.
Borrowings, Commitment Fees and Reduction of Commitments. Except as expressly otherwise provided herein (including as expressly provided in Sections 2.4, 2.7, 2.9, 2.10(b), 2.12, 2.15(c), 2.19, 2.20, 2.21, 2.22, 2.24, 2.26, 10.5, 10.6 and 10.7), each borrowing by the Borrower from the Tranche A Revolving Lenders hereunder, each payment by the Borrower on account of the Tranche A Commitment Fee and any reduction of the Tranche A Revolving Commitments shall be made pro rata according to the Tranche A Revolving Percentages of the relevant Tranche A Revolving Lenders other than reductions of Tranche A Revolving Commitments pursuant to Section 2.24.
Borrowings, Commitment Fees and Reduction of Commitments. (i) Except as expressly otherwise provided herein (including as expressly provided in Sections 2.4, 2.7, 2.9, 2.10(b), 2.12, 2.15(c), 2.19, 2.20, 2.21, 2.22, 2.24, 2.26, 10.5, 10.6 and 10.7), each borrowing by the Borrower from the Tranche A Revolving Lenders hereunder, each payment by the Borrower on account of the Tranche A Commitment Fee and any reduction of the Tranche A Revolving Commitments shall be made pro rata according to the Tranche A Revolving Percentages of the relevant Tranche A Revolving Lenders other than reductions of Tranche A Revolving Commitments pursuant to Section 2.24.
(ii) [reserved].
(iii) With respect to each Tranche (excluding Tranche A Revolving Commitments, Tranche A Revolving Loans, SISO Term Commitments, SISO Term Loans, Tranche B Term Commitments and Tranche B Term Loans), except as expressly otherwise provided herein (including as expressly provided in Sections 2.4, 2.7, 2.9, 2.10(b), 2.12, 2.15(c), 2.19, 2.20, 2.21, 2.22, 2.24, 2.26, 10.5, 10.6 and 10.7), each borrowing by the Borrower from the Revolving Lenders hereunder, each payment by the Borrower on account of any commitment fee and any reduction of the Revolving Commitments, in each case in respect of such Tranche, shall be made pro rata according to the applicable Tranche Revolving Percentages of such Revolving Lenders other than reductions of such Revolving Commitments pursuant to Section 2.24.