Initial Borrowing Tranche Clause Samples

The Initial Borrowing Tranche clause defines the first portion of funds that a borrower is permitted to draw under a loan agreement. Typically, this clause specifies the maximum amount available for the initial disbursement, any conditions precedent that must be satisfied before the funds are released, and the timing or process for making the initial draw. By clearly outlining the terms for the first borrowing, this clause ensures both parties understand the initial funding mechanics and helps prevent disputes regarding access to loan proceeds at the outset of the lending relationship.