Effectiveness of Commitment Increase Sample Clauses
The 'Effectiveness of Commitment Increase' clause defines when and how an increase in a party's financial commitment under an agreement becomes legally binding and operational. Typically, this clause specifies the conditions that must be met—such as receipt of required documentation, satisfaction of certain covenants, or approval by relevant parties—before the increased commitment takes effect. For example, in a loan agreement, it may state that a lender's additional funding is only available after all closing conditions are fulfilled. The core function of this clause is to ensure that all parties clearly understand the precise moment and requirements for an increased commitment to become effective, thereby preventing disputes and ensuring orderly execution of the agreement.
Effectiveness of Commitment Increase. Each Commitment Increase (and the increase of the Commitment of each Increasing Lender and/or the new Commitment of each Assuming Lender, as applicable, resulting therefrom) shall become effective as of the relevant Commitment Increase Date upon receipt by Administrative Agent, on or prior to 9:00 a.m. on such Commitment Increase Date, of (A) a certificate of a duly authorized officer of Borrower stating that the conditions with respect to such Commitment Increase under this Section 2.3.3.2 have been satisfied and (B) an agreement, in form and substance satisfactory to Borrower and Administrative Agent, pursuant to which, effective as of such Commitment Increase Date, the Commitment of each such Increasing Lender shall be increased or each such Assuming Lender, as applicable, shall undertake a Commitment, duly executed by such Increasing Lender or Assuming Lender, as the case may be, and Borrower and acknowledged by Administrative Agent. Upon Administrative Agent’s receipt of a fully executed agreement from each Increasing Lender and/or Assuming Lender referred to in clause (B) above, together with the certificate referred to in clause (A) above, Administrative Agent shall record the information contained in each such agreement in the Register and give prompt notice of the relevant Commitment Increase to Borrower and the Lenders (including, if applicable, each Assuming Lender). On each Commitment Increase Date Borrower shall simultaneously (i) prepay in full the outstanding Revolving Loans (if any) held by the Lenders immediately prior to giving effect to the relevant Commitment Increase, (ii) if Borrower shall have so requested in accordance with this Agreement, borrow new Revolving Loans from all Lenders (including, if applicable, any Assuming Lender) such that, after giving effect thereto, the Revolving Loans are held ratably by the Lenders in accordance with their respective Commitments (after giving effect to such Commitment Increase) and (iii) pay to the Lenders the amounts, if any, payable under Section 2.7 in connection with such prepayment.
Effectiveness of Commitment Increase. The Assuming Lender, if any, shall become a Lender hereunder as of such Commitment Increase Date and the Commitment of any Increasing Lender and such Assuming Lender shall be increased as of such Commitment Increase Date; provided that:
Effectiveness of Commitment Increase. On the Commitment Increase Date for any Commitment Increase, (A) each Assuming Lender, if any, shall become a Lender hereunder as of such Commitment Increase Date with the Commitment in the amount set forth in the agreement referred to in Section 2.07(e)(ii)(y), (B) the Commitment of the respective Class of each Increasing Lender part of such Commitment Increase, if any, shall be increased as of such Commitment Increase Date to the amount set forth in the agreement referred to in Section 2.07(e)(ii)(y), (C) the Borrower Sublimit with respect to the Borrower requesting such Commitment Increase shall be increased as of such Commitment Increase Date in an amount equal to such total Commitment Increase, and (D) each Lender’s Subcommitments with respect to each Borrower shall be reallocated as of such Commitment Increase Date in the manner set forth in clause (iv) below; provided that:
Effectiveness of Commitment Increase. The Commitment of the Lender shall be increased as of such Commitment Increase Date (or such other date as may be agreed to in writing by the Borrower and the Lender) upon (i) satisfaction of the conditions to such Commitment Increase set forth above in Section 4(a), and (ii) receipt by the Lender of a Note (as defined in Section 5), dated as of the Commitment Increase Date (or such other date as may be agreed to in writing by the Borrower and the Lender), evidencing the Borrower’s obligation to repay Loans in a principal amount no less than the aggregate amount of the Commitment Increase (or any part thereof accepted by the Lender in accordance with Section 4(a)(v)).
Effectiveness of Commitment Increase. Promptly upon ------------------------------------ its receipt of a notice of Commitment Increase, the Agent shall notify the Lenders thereof. In the event that by 10:00 A.M. on the applicable Commitment Increase Date, the Agent shall have received to the satisfaction of the Agent each of the following (the "Commitment Increase Closing Items"):
Effectiveness of Commitment Increase. Each Commitment Increase (and the increase of the Commitment of each Increasing Lender and/or the new Commitment of each Assuming Lender, as applicable, resulting therefrom) shall become effective as of the relevant Commitment Increase Date upon receipt by Administrative Agent, on or prior to 9:00 a.m. on such Commitment Increase Date, of (A) a certificate of a duly authorized officer of Borrower stating that the conditions with respect to such Commitment Increase under this paragraph (b) have been satisfied and (B) an agreement, in form and substance satisfactory to Borrower and Administrative Agent, pursuant to which, effective as of such Commitment Increase Date, the Commitment of each such Increasing Lender shall be increased or each such Assuming Lender, as applicable, shall undertake a Commitment, duly executed by such Increasing Lender or Assuming Lender, as the case may be, and Borrower and acknowledged by Administrative
Effectiveness of Commitment Increase. On each Commitment Increase Date,
(i) each Assuming Lender part of such Commitment Increase, if any, shall become a Lender hereunder as of such Commitment Increase Date with a Commitment in the amount set forth in the Joinder Supplement; and
(ii) the Collateral Manager shall deliver to the Borrower, the Administrative Agent and each Lender a written notice of the occurrence of the Commitment Increase Date together with a revised Annex A (approved by the Administrative Agent) reflecting the Commitment Increase.