Commitment and Utilization Fees Sample Clauses
The Commitment and Utilization Fees clause defines the fees a borrower must pay to a lender for making funds available and for actually using those funds. Typically, a commitment fee is charged on the unused portion of a credit facility, incentivizing the borrower to either use the funds or release the commitment, while a utilization fee may be charged on the amount actually drawn. This clause ensures the lender is compensated for both the opportunity cost of reserving funds and the risk associated with funds that are actively borrowed, thereby balancing the interests of both parties and encouraging efficient use of the credit facility.
Commitment and Utilization Fees. (a) The Company shall pay to the Bank for the ratable account of the Lenders, for each day that the Total Commitment shall (subject to the terms and conditions hereof) be in effect, a fee (the "Commitment Fee") (computed on the basis of the actual number of days elapsed in a year of 360 days) equal to the Applicable Commitment Fee Rate applied to the Unused Commitment. The Commitment Fee accrued with respect to any calendar quarter shall be paid on the last day of the month following the end of such calendar quarter and on the Termination Date for such fees accrued up to that date.
(b) The Company shall pay to the Bank for the ratable account of the Lenders, for each day that the Outstandings are more than 50% of the Total Commitment on such day, a fee (the "Utilization Fee") (computed on the basis of the actual number of days elapsed in a year of 360 days) equal to the Applicable Utilization Fee Rate applied to the Outstandings. The Utilization Fee accrued with respect to any calendar quarter shall be paid on the last day of the month following the end of such calendar quarter and on the Termination Date for such fees accrued up to that date.
Commitment and Utilization Fees. The Trust shall pay to the Bank for the ratable account of the Lenders, for each day that the Total Commitment shall (subject to the terms and conditions hereof) be in effect, a fee (the "Commitment Fee") (computed on the basis of the actual number of days elapsed in a year of 360 days) equal to the Applicable Commitment Fee Rate applied to the Unused Commitment. The Commitment Fee accrued with respect to any calendar quarter shall be paid on the last day of the month following the end of such calendar quarter and on the Termination Date for such fees accrued up to that date.
Commitment and Utilization Fees. 24 SECTION 2.04. Several Obligations...............................................................................25 SECTION 2.05. Notes.............................................................................................25 SECTION 2.06. Use of Proceeds...................................................................................26 SECTION 2.07. Currency Fluctuations and Mandatory Prepayments of Foreign Currency Amounts...........................................................26 SECTION 2.08. Increase in Commitment Amount.....................................................................27 SECTION 2.09. Additional Subsidiary Borrowers...................................................................27 ARTICLE III BORROWINGS, PREPAYMENTS AND INTEREST OPTIONS SECTION 3.01. Borrowings........................................................................................27 SECTION 3.02. Prepayments.......................................................................................28
Commitment and Utilization Fees. The Company shall pay to the Agent for the account of each Bank a commitment fee equal to the Applicable Commitment Fee Percentage times the actual daily unused portion of such Bank's Commitment, computed on a quarterly basis in arrears on the last Business Day of each calendar quarter based upon the daily utilization for that quarter as calculated by the Agent. For purposes hereof, each Bank's Commitment shall be deemed utilized to the extent of its Pro Rata Share of all outstanding Loans and L/C Obligations. Such commitment fee shall accrue from the Closing Date to the Revolving Termination Date and shall be due and payable quarterly in arrears on the last Business Day of each calendar quarter commencing with the first calendar quarter ending after the Closing Date through the Revolving Termination Date, with the final payment to be made on the Revolving Termination Date; provided that, in connection with any reduction or termination of Commitments under Section 2.06, the accrued commitment fee calculated for the period ending on such date shall also be paid on the date of such reduction or termination, with the following quarterly payment being calculated on the basis of the period from such reduction or termination date to such quarterly payment date. The commitment fees provided in this subsection shall accrue at all times after the above-mentioned commencement date, including at any time during which one or more conditions in Article V are not met. The Company also agrees to pay to the Agent for the pro-rata account of each Bank a utilization fee for each day on which the Effective Amount of all Loans outstanding plus the Effective Amount of all L/C Obligations outstanding is greater than 50% of the aggregate Commitments, from the date hereof to and including the later of the Revolving Termination Date and the date all Loans and L/C Obligations are paid in full. Such utilization fee shall be equal to .05% multiplied by the aggregate outstanding Effective Amount of all Loans and L/C Obligations on such day and shall be payable quarterly in arrears on the last Business Day of each calendar quarter commencing December 31, 1998 through the Revolving Termination Date, with the final payment to be made on the Revolving Termination Date."
(c) Section 2.13(b) of the Credit Agreement is amended in its entirety to read as follows:
Commitment and Utilization Fees. (a) The Borrower agrees to pay to the Agent, on behalf of the Lenders in accordance with their Facility A Commitment Percentages, a commitment fee (the "Facility A Commitment Fee") calculated daily for the period commencing on the date hereof through and including the Facility A Maturity Date, or such earlier date upon which the Facility A Commitments shall terminate, at the rate per annum (expressed in Basis Points), set forth in the table below, opposite the Debt Rating then in effect MULTIPLIED BY the amount by which the Facility A Total Commitment exceeds the aggregate Facility A Revolving Credit Debt outstanding on such day; PROVIDED that, in the event of a split Debt Rating by S&P and ▇▇▇▇▇'▇, the higher rating shall apply unless the Debt Rating by S&P and ▇▇▇▇▇'▇ is split by more than one level, in which case the average rating shall apply: FACILITY A DEBT RATING COMMITMENT FEE RATE S&P: A- 10.0 Moody's: A3 or better S&P: BBB+ 12.5 Moody's: Baa1 S&P: BBB 15.0 Moody's: Baa2 S&P: BBB- 20.0 Moody's: Baa3