Floor Plan Loan Commitments Sample Clauses
A Floor Plan Loan Commitments clause defines the lender's agreement to provide a revolving line of credit specifically for the purchase and holding of inventory, such as vehicles or equipment, by a dealer or business. This clause typically outlines the maximum loan amount, the types of inventory covered, and the conditions under which advances can be made and repaid as inventory is sold. Its core practical function is to ensure that the borrower has ongoing access to funds needed to maintain inventory levels, while also protecting the lender by setting clear terms for repayment and collateral management.
Floor Plan Loan Commitments. Subject to the terms and conditions and relying upon the representations and warranties of the Borrowers herein set forth, each Floor Plan Lender severally and not jointly agrees to make revolving credit loans (each such loan, a “Floor Plan Loan”) to any Floor Plan Borrower from time to time on any Business Day during the period from the Closing Date to the Maturity Date in an aggregate amount not to exceed at any time such Lender’s Pro Rata Share of Floor Plan Loan Commitments; provided, however, that, subject to Section 2.3(d)(iii), after giving effect to all Floor Plan Loans and Swing Line Loans requested on any date, the aggregate principal amount of all outstanding Floor Plan Loans and Swing Line Loans shall not at any time exceed the aggregate Floor Plan Loan Commitments and, further provided that the aggregate principal amount of all outstanding Floor Plan Loans, Swing Line Loans, Acquisition Loans and Letter of Credit Obligations shall not at any time exceed the Total Commitment. Subject to the other terms and conditions hereof, any Floor Plan Borrower may borrow, prepay and reborrow Floor Plan Loans under this Section 2.1.
Floor Plan Loan Commitments. (a) As of the Closing Date, the aggregate outstanding principal amount of the Floorplan Loans, other than, for the avoidance of doubt, any Swing Line Loans, and unpaid accrued interest thereon is set forth on Schedule 2.1 (and together with all other accrued and unpaid commitment fees and letter of credit fees and other fees thereon, the “Closing Date Outstanding Floor Plan Loan Obligations”). The principal amounts of the Closing Date Outstanding Floor Plan Loan Obligations are held by the Floor Plan Lenders on the Closing Date in the amounts set forth on Schedule 2.1. Subject to the terms of this Agreement and in reliance on the representations and warranties of the Borrowers herein, each of the parties hereto hereby agrees (A) that (other than any amounts repaid on the Closing Date) the Closing Date Outstanding Floor Plan Loan Obligations shall be, from and following the Closing Date, continued as Floor Plan Loans and interest and fees, as applicable, under this Agreement, (B) that concurrently herewith, the “Floor Plan Lenders” (as defined in the Twelfth Amended and Restated Agreement) party to the Twelfth Amended and Restated Agreement shall be deemed to have assigned the pre-existing “Floor Plan Loans” (as defined in the Twelfth Amended and Restated Agreement), other than any amounts repaid on the Closing Date, and commitments among themselves and to the Floor Plan Lenders hereunder and hereby direct the Agent to re-allocate all such pre-existing loans and commitments, such that, after giving effect to the transactions contemplated hereby, including the addition and joinder of new Lenders in connection herewith, the Floor Plan Loans and Floor Plan Loan Commitments shall be allocated among the Floor Plan Lenders as set forth on Schedule 1, and (C) that the Lenders shall make additional Floor Plan Loans as set forth below.
(b) Subject to the terms and conditions and relying upon the representations and warranties of the Borrowers herein set forth, each Floor Plan Lender severally and not jointly agrees to make revolving credit loans (each such loan, a “Floor Plan Loan”) to any Floor Plan Borrower from time to time on any Business Day during the period from the Closing Date to the Maturity Date in an aggregate amount not to exceed at any time such ▇▇▇▇▇▇’s Pro Rata Share of Floor Plan Loan Commitments; provided, however, that, subject to Section 2.3(c)(iii), after giving effect to all Floor Plan Loans and Swing Line Loans requested on any date, the aggre...