Commitment Not Revolving Sample Clauses

The 'Commitment Not Revolving' clause defines that the lender’s commitment to provide funds under a loan agreement is not renewable or reusable once repaid. In practice, this means that if a borrower repays any portion of the principal, they cannot re-borrow that amount; the total available commitment decreases as repayments are made. This clause ensures that the loan operates as a term loan rather than a revolving credit facility, providing certainty to both parties about the maximum amount of credit available at any time and preventing the borrower from repeatedly drawing down funds.