Floor Plan Loans Clause Samples
A Floor Plan Loans clause outlines the terms under which a lender provides financing to a borrower, typically a dealership, for the purchase of inventory such as vehicles or large equipment. This clause details how the loan is structured, including the process for advancing funds, the requirements for repayment as inventory is sold, and the obligations of the borrower to maintain and report on the inventory. Its core practical function is to facilitate the borrower's ability to stock inventory without immediate full payment, while ensuring the lender's interests are protected through clear repayment and collateral provisions.
Floor Plan Loans. The proceeds of the Floor Plan Loans may be used only to finance the purchase of Motor Vehicles for resale in the ordinary course of business of the Floor Plan Borrowers.
Floor Plan Loans. (a) Each Floor Plan Loan Borrowing may be in any amount.
(b) Each Floor Plan Loan Borrowing shall be a SOFR Borrowing (unless (i) the Alternate Base Rate is in effect in accordance with Article V hereof, in which case the Borrowing shall be made as an ABR Borrowing or (ii) initially resulting from a Draft in which case it shall be made as a Quoted Rate Borrowing). Each Floor Plan Lender may fulfill its obligation to make Floor Plan Loans with respect to any SOFR Loan by causing, at its option, any domestic or foreign branch or Affiliate of such Floor Plan Lender to make such Loan, provided that the exercise of such option shall not affect the obligation of the applicable Floor Plan Borrower to repay such Loan in accordance with the terms of the applicable Note.
(c) A Floor Plan Borrower shall not be entitled to request a Floor Plan Borrowing hereunder until it (i) has executed and delivered to the Floor Plan Lenders, as aforesaid, the Notes and to the Swing Line Bank, a Swing Line Note, or has joined such Notes by execution and delivery of an Addendum, (ii) has become a party to this Agreement by execution and delivery of this Agreement or an Addendum, and (iii) has become a party to the Security Documents, accompanied in each case by authority documents, legal opinions and other supporting documents as required by Agent, Floor Plan Agent and the Required ▇▇▇▇▇▇▇ hereunder and has otherwise complied with the provisions of Section 9.16(b).
(d) A Floor Plan Borrower that becomes a Dual Subsidiary shall not be entitled to request a New Vehicle Floor Plan Loan or a New Vehicle Swing Line Loan from and after the Dual Subsidiary Financing Commencement Date with respect to such Floor Plan Borrower unless and until such time as such Floor Plan Borrower ceases to be a Dual Subsidiary (as notified in writing to the Agent).
Floor Plan Loans. (a) Subject to the terms and conditions of this Agreement and the other Credit Documents, each of the Floor Plan Lenders severally agrees to make Floor Plan Loans in Dollars to the Floor Plan Borrowers as joint and several obligors from time to time on any Borrowing Date during the Availability Period for the Floor Plan Facility ; provided, however, that (i) with regard to each Floor Plan Lender, the Floor Plan Loan Exposure of such Floor Plan Lender shall not at any time exceed the amount of such Floor Plan Lender’s Floor Plan Loan Commitment, (ii) the Total Floor Plan Loan Outstandings shall not at any time exceed the Floor Plan Line of Credit Dollar Cap, (iii) the aggregate outstanding principal amount of advances of proceeds of the Floor Plan Loans (including M&T Advances) used to finance (A) Used Floor Plan Units shall not exceed Ninety Million Dollars ($90,000,000.00), and (B) Permitted Company Vehicles shall not exceed One Million Dollars ($1,000,000.00); (iv) each Floor Plan Loan (including M&T Advances) shall be advanced against an individual Floor Plan Vehicle or Unit, subject, in each case, to the applicable Floor Plan Loan Advance Limit applicable to such Floor Plan Vehicle or Unit; (v) the aggregate principal amount of each advance of proceeds of the Floor Plan Loans (including M&T Advances) requested in each Loan Request shall not exceed the sum of the Floor Plan Loan Advance Limit amounts for each Floor Plan Vehicle or Unit to be financed on such Loan Request, and (vi) the Total Floor Plan Loan Outstandings shall not, at any time, exceed any of the limitations set forth in the Certificate of Designations. The Administrative Agent may at any time in its sole and absolute discretion establish limits on the aggregate outstanding amount of any Floor Plan Loans available to be used by the Floor Plan Borrowers to finance purchases of Eligible New Floor Plan Units from a particular Manufacturer, supplier or dealer. The Floor Plan Borrowers shall not request any advances of proceeds of the Floor Plan Loans which would cause the aggregate unpaid principal balances of the Floor Plan Loans (including M&T Advances) to exceed the above-stated limitations. In the event that the aggregate unpaid principal balances of the Floor Plan Loans (including M&T Advances) exceed the above-stated limitations in any respect, the Floor Plan Borrowers shall immediately make such payments to the Administrative Agent as will be sufficient to reduce the aggregate unpaid pr...
Floor Plan Loans. Subject to the provisions of paragraph (f) below and the provisions of Section 5.3, each SOFR Loan that is a Floor Plan Loan shall bear interest at a rate per annum (computed on the basis of the actual number of days elapsed over a year of 360 days) equal to the lesser of (i) the SOFR Rate in effect for such Loan plus: (A) 1.10% if such Loan is to finance any Motor Vehicle other than Used Motor Vehicles or Program Cars (such Floor Plan Loans hereinafter referred to as “New Vehicle Floor Plan Loans”) or (B) 1.40% if such Loan is to finance Used Motor Vehicles or Program Cars (such Floor Plan Loans hereinafter referred to as “Used Vehicle Floor Plan Loans”) and (ii) the Highest Lawful Rate.
Floor Plan Loans. All outstanding Floor Plan Loans shall be due and payable in full on the Termination Date.
Floor Plan Loans. Each Borrower will use the proceeds of the Floor Plan Loans solely to purchase or finance Eligible Floor Plan Vehicles or Units.
Floor Plan Loans. All principal balances advanced and outstanding under the Floor Plan Loans shall thereafter bear interest at the Adjusted Daily LIBOR Rate until the Borrower Representative provides to the Administrative Agent a Notice of Election three (3) Business Days prior to the Business Day on which the Borrowers desire that the principal balances outstanding under the Floor Plan Loans accrue interest at the Adjusted Base Rate. A single of interest, whether the Adjusted Daily LIBOR Rate or the Adjusted Base Rate, shall be applicable at any given time to the Floor Plan Loans. Adjusted Daily LIBOR Borrowings on account of Floor Plan Loans shall be due and payable monthly in arrears on the Interest Payment Date in each consecutive month.
Floor Plan Loans. Section 2.1 Section 2.2 Section 2.3 Section 2.4 Section 2.5 Section 2.6 Section 2.7 Section 2.8 Section 2.9 Section 2.10 Section 2.11 Floor Plan Loan Commitments Floor Plan Loans. Floor Plan Borrowing Procedure Notice of Types of Floor Plan Loans and Interest Periods Payments; Application of Payments Title Documents Power of Attorney Issuance of Drafting Agreements Conditions to Issuance Drafts Under Manufacturers Drafting Letters Obligations Absolute
Floor Plan Loans. (a) Each Floor Plan Loan Borrowing made to any of the Floor Plan Borrowers by the Banks on the Closing Date or on any Floor Plan Adjustment Date shall be in the minimum aggregate principal amount of One Million Dollars ($1,000,000) and in integral multiples of One Million Dollars ($1,000,000; provided that a Comerica Prime Rate Loan or a Floor Plan Loan resulting from a Draft may be in any amount) and shall consist of Floor Plan Loans of the same Type made ratably by the Banks in accordance with their respective Floor Plan Loan Commitments;
Floor Plan Loans. Subject to the provisions of paragraph (f) below and the other provisions of this Section 5.3, each Eurodollar Loan that is a Floor Plan Loan shall bear interest at a rate per annum (computed on the basis of the actual number of days elapsed over a year of 360 days) equal to the lesser of (i) the LIBO Rate for the Interest Period in effect for such Loan plus: (A) 1.10% if such Loan is to finance any Motor Vehicle other than Used Motor Vehicles or Program Cars (such Floor Plan Loans hereinafter referred to as “New Vehicle Floor Plan Loans”) or (B) 1.40% if such Loan is to finance Used Motor Vehicles or Program Cars (such Floor Plan Loans hereinafter referred to as “Used Vehicle Floor Plan Loans”) and (ii) the Highest Lawful Rate.