Continuation and Conversion Option Sample Clauses
The Continuation and Conversion Option clause allows a party, typically a borrower, to extend the term of an existing financial arrangement or convert it into a different type of agreement under specified conditions. For example, a borrower may have the right to continue a loan for an additional period or convert a short-term loan into a long-term facility, often by providing notice and meeting certain requirements. This clause provides flexibility in managing financial obligations, helping parties adapt to changing circumstances without renegotiating entirely new agreements.
Continuation and Conversion Option. (a) Subject to Section 2.08(d), Borrower may irrevocably request a Conversion or Continuation of Loans on any Business Day in a Minimum Amount therefor by delivering a Request for Extension of Credit therefor by Requisite Notice to Administrative Agent not later than the Requisite Time therefor. All Conversions and Continuations of Loans denominated in Dollars shall constitute Base Rate Loans unless properly and timely otherwise designated as set forth in the prior sentence.
(b) Unless Borrower pays all amounts due under Section 3.05, if any, a Eurodollar Rate Loan may be Continued or Converted only on the last day of the Interest Period for such Eurodollar Rate Loan. During the existence of an Event of Default, Administrative Agent may (and upon the request of the Required Lenders shall) prohibit Loans from being requested as, Converted into, or Continued as Eurodollar Rate Loans, and Required Lenders may demand that any or all of the then outstanding Eurodollar Rate Loans be Converted immediately into Base Rate Loans.
(c) Administrative Agent shall promptly notify Borrower and Lenders of the interest rate applicable to any Eurodollar Rate Loan upon determination of the same. Administrative Agent shall from time to time notify Borrower and Lenders of any change in JPMorgan Chase’s prime rate used in determining the Base Rate promptly following the public announcement of such change.
(d) Notwithstanding anything to the contrary contained herein, Competitive Loans may not be Converted or Continued.