Increased Commitment; Additional Banks Sample Clauses
The "Increased Commitment; Additional Banks" clause allows for the expansion of the total loan commitment under a credit agreement by permitting existing lenders to increase their commitments or by bringing new lenders into the lending group. In practice, this clause outlines the procedures for requesting additional funds, the conditions under which new banks may join, and the approvals required from both the borrower and existing lenders. Its core function is to provide flexibility for the borrower to access more financing as needed, while ensuring that the process for increasing commitments is orderly and transparent.
Increased Commitment; Additional Banks. (a) On a single occasion during each year subsequent to the Closing Date, the Company may, upon at least thirty (30) days’ notice to the Administrative Agent (which shall promptly provide a copy of such notice to the Banks), propose to increase the amount of the Commitment in an aggregate minimum amount of $10,000,000 and an aggregate maximum amount not to exceed $500,000,000 (the amount of any such increase, the “Increased Commitment”); provided that the conditions set forth in Section 2.8(c) are satisfied. Each Bank party to this Agreement at such time shall have the right (but no obligation), for a period of fifteen (15) days following receipt of such notice, to elect by notice to the Company and the Administrative Agent to increase its Pro Rata Share of the Commitment by a principal amount which bears the same ratio to the Increased Commitment as its then Pro Rata Share of the Commitment bears to the Commitment then existing.
(b) If any Bank party to this Agreement shall not elect to increase its Pro Rata Share of the Commitment pursuant to subsection (a) of this Section 2.8, the Company may designate another bank or other banks (which may be, but need not be, one or more of the existing Banks, but which shall be an Eligible Assignee), which at the time agree to (i) in the case of any such Bank that is an existing Bank, increase its Pro Rata Share of the Commitment and (ii) in the case of any other such Bank (an “Additional Bank”), become a party to this Agreement, provided that the Pro Rata Share of the Commitment of each Additional Bank equals or exceeds $10,000,000. The sum of the increases in the Pro Rata Shares of the Commitment of the existing Banks pursuant to this subsection (b) plus the Pro Rata Shares of the Commitment of the Additional Banks shall not in the aggregate exceed the unsubscribed amount of the Increased Commitments.
(c) An increase in the aggregate amount of the Commitment pursuant to this Section 2.8 shall become effective on the date (the “Increase Date”) on which the Administrative Agent receives an agreement in form and substance satisfactory to the Administrative Agent signed by the Company, by each Additional Bank and by each other Bank whose Pro Rata Share of the Commitment is to be increased, setting forth the new Pro Rata Shares of the Commitment of such Banks and setting forth the agreement of each Additional Bank to become a party to this Agreement and to be bound by all the terms and provisions hereof, together with (...