Certain Acknowledgments by Borrower Clause Samples

Certain Acknowledgments by Borrower. Borrower recognizes and acknowledges the Credits made available hereunder are being established and will be maintained in the manner provided herein and in the other Loan Documents at the express request of, and to accommodate the administrative and operational requirements of, Borrower and Guarantors. Specifically, the Credits might have been established to provide for direct borrowings by Borrower and by each Guarantor, subject to individual borrowing limits consistent with the Lenders' prudent lending practices, based on each such Person's borrowing capacity, with additional credit needs of such Person in excess of such borrowing limit being accommodated by loans made to such Person by Borrower or other Guarantors having excess borrowing capacity. For administrative and operational reasons imposed by Borrower as aforesaid, however, the Credits are being established and will be maintained as described above, but with the intention, as confirmed in Section 5.8 (but without limiting in any manner the obligations of Borrower to repay any and all Advances in accordance with the terms hereof and of the Notes), that Borrower and Guarantors ultimately share, among themselves, repayment obligations under the Credits to the same extent as if such borrowings had been made under the alternative, individualized arrangement described above. In addition, it is further recognized and acknowledged that Borrower, and each Guarantor, will directly and indirectly benefit from the expansion of Borrower's and Guarantors' collective business activities, as facilitated by the Credits.