Interest Holdback Clause Samples

An Interest Holdback clause defines the process by which a portion of accrued interest is withheld rather than paid out immediately. Typically, this clause applies in loan agreements where the lender retains a specified amount of interest from disbursements, often to cover future obligations or to ensure compliance with certain conditions. By holding back interest, the clause helps protect the lender against potential defaults or shortfalls, ensuring that sufficient funds are available to meet ongoing or final payment requirements.
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Interest Holdback. As of the date of the Ninth Amendment to Credit Agreement, the sum of $4,000,000.00, as the same may be reduced through use thereof or replenished as provided in this Agreement. The Interest Holdback may be used by Borrower only through and including November 1, 2021 or upon the occurrence of a Liquidity Trigger Event and solely to pay interest due under this Agreement.
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Interest Holdback. Ten Million Dollars ($10,000,000) of the Loan Amount (the “Interest Holdback”) shall be used for the purpose of paying interest on the Loan. Provided that no Event of Default then exists, the Interest Holdback shall be disbursed monthly in an amount equal to one half of the Monthly Debt Service Payment (calculated assuming an interest rate of twelve percent (12%) per annum, regardless of the actual Applicable Interest Rate or Minimum Funding Rate in effect from time to time) payable for such month; provided that no such disbursement shall be made until the Agent shall have received the Borrower’s portion of each Monthly Debt Service Payment. All disbursements from the Interest Holdback prior to the full funding of the Loan (exclusive of the Interest Holdback) shall only be made in conjunction with a Draw Request and upon satisfaction of all conditions precedent to such Draw Request. Disbursements from the Interest Holdback after the full funding of the Loan (exclusive of the Interest Holdback) shall only be made in conjunction with a special interest disbursement request in the form attached hereto as Exhibit J (a “Special Draw Request”), which shall be made simultaneously with a request for an advance by the Property Owner under the Senior Loan. Provided that no Event of Default shall then exist, the Agent shall make the disbursement requested in a Special Draw Request upon confirmation that the Senior Lender is simultaneously funding an advance under the Senior Loan (or is advancing interest to itself for such month if no draw request has been made by the Property Owner) and upon the Agent’s receipt of the Borrower’s portion of the applicable Monthly Debt Service Payment. In the event that no amounts are advanced by the Senior Lender in any month when the Borrower has submitted a Special Draw Request, the Agent shall independently determine whether the conditions precedent applicable to an interest only Advance have been satisfied. The Borrower hereby directs the Agent to make such disbursement directly to the Lenders as a payment in respect of the Monthly Debt Service Payment due for such month. No portion of the Interest Holdback may be disbursed after the Initial Maturity Date. The Commitments of the Lenders hereunder automatically shall be reduced, pro rata, by the amount of the Interest Holdback not disbursed prior to the Initial Maturity Date.
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Interest Holdback. See definition of “Value Add Property Availability.” Interest Payment Date. With respect to (a) any Base Rate Loan and any Swing Loan, the last Business Day of each calendar quarter, commencing on the first such date to occur after the Closing Date and the final maturity date of such Base Rate Loan or Swing Loan; and (b) any LIBOR Rate Loan, the last day of each Interest Period applicable to such Loan; provided, in the case of each Interest Period of longer than three (3) months, “Interest Payment Date” shall also include each date that is three (3) months, or an integral thereof, after the commencement of such Interest Period.
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Interest Holdback. The term “Interest Holdback” shall mean the Holdback for Interest as defined in a Note.
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Interest Holdback. See §9(a).
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Interest Holdback. Lender shall hold back the sum equal to One Million Two Hundred Thousand and No/100 Dollars ($1,200,000.00) from the Loan to be made available and allocated as an interest shortfall reserve (“Interest Holdback”). The Interest Holdback shall be disbursed monthly directly to Lender for the payment of interest which accrues and becomes due under the Note in strict accordance with the quarterly schedule (including the quarterly disbursement limitation) set forth on Exhibit I attached hereto; provided, however, that to the extent an amount less than the applicable quarterly disbursement limit is funded by Lender from the Interest Holdback during a particular quarter, the underfunded amount shall roll over to the next quarter and the quarterly disbursement limitation for that next quarter shall be automatically increased by the applicable underfunded amount being so rolled over. Such sums shall bear interest from the date applied by Lender in accordance with the Note. Lender is hereby authorized to charge the Loan directly for such interest payments when due. Lender shall provide Borrower with a monthly interest statement. Depletion of the Interest Holdback (or the Interest Reserve Account, if applicable) shall not release Borrower from any of Borrower’s obligations under the Loan Documents including, without limitation, payment of all accrued and due interest from other sources. Notwithstanding the foregoing, any disbursements from the Interest Holdback shall be subject to the provisions of Article X of this Agreement which require that available Gross Income be first applied for the purposes specified therein, including to the payment of accrued interest under the Note, before Borrower shall be entitled to any disbursements from the Interest Holdback (or the Interest Reserve Account).
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Related to Interest Holdback

  • Holdback In consideration for the Company agreeing to its obligations under this Agreement, each Shareholder agrees in connection with any registration of the Company’s securities (whether or not such Shareholder is participating in such registration) upon the request of the Company and the underwriters managing any underwritten offering of the Company’s securities, not to effect (other than pursuant to such registration) any public sale or distribution of Registrable Securities, including, but not limited to, any sale pursuant to Rule 144 or Rule 144A, or make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any Registrable Securities, any other equity securities of the Company or any securities convertible into or exchangeable or exercisable for any equity securities of the Company without the prior written consent of the Company or such underwriters, as the case may be, during the Holdback Period, provided that nothing herein will prevent any Shareholder that is a partnership or corporation from making a distribution of Registrable Securities to the partners or shareholders thereof or a transfer to an Affiliate that is otherwise in compliance with applicable securities laws, so long as such distributees agree to be so bound. With respect to such underwritten offering of Registrable Securities covered by a registration pursuant to Sections 2.1 or 2.2, the Company further agrees not to effect (other than pursuant to such registration or pursuant to a Special Registration) any public sale or distribution, or to file any Registration Statement (other than such registration or a Special Registration) covering any, of its equity securities, or any securities convertible into or exchangeable or exercisable for such securities, during the Holdback Period with respect to such underwritten offering, if required by the managing underwriter, provided that notwithstanding anything to the contrary herein, the Company’s obligations under this Section 2.7 shall not apply during any twelve-month period for more than an aggregate of ninety days.

  • Escrow Amount At the Closing, Seller and Buyer shall enter into an escrow agreement in the form attached hereto as Exhibit A (the “Escrow Agreement”), pursuant to which Seller shall deposit Three Hundred Forty-Seven Thousand Two Hundred Ninety-Nine Dollars ($347,299) (the “Escrow Amount”) with the Escrow Agent, which shall be held by the Escrow Agent in a segregated account as security for Seller’s indemnification obligations under Section 15 hereof. All interest accruing on the Escrow Amount shall be for the benefit of Seller. In the event Buyer makes a written claim or demand for indemnification under Section 15 hereof (an “Indemnification Claim”), and Seller does not dispute such Indemnification Claim, or is determined to be liable for and in respect of such Indemnification Claim by a court of competent jurisdiction, then the Escrow Agent promptly thereafter shall pay such Indemnification Claim in full to Buyer, all as more particularly provided in the Escrow Agreement. On the date which is six (6) months after the Closing Date (as defined in Section 1.06 hereof), fifty percent (50%) of the Escrow Amount then remaining in escrow under the Escrow Agreement and not then subject to an outstanding Indemnification Claim shall be paid by the Escrow Agent to Seller. The Escrow Agreement shall expire upon the termination of the Survival Period (as defined in Section 15.01 hereof), and immediately thereafter the Escrow Agent shall pay the portion, if any, of the then remaining Escrow Amount not in dispute to Seller; provided, however, that if prior to the expiration of the Survival Period, Buyer shall have made an Indemnification Claim or commenced litigation or any other proceeding on account of any such claim, the term of the Escrow Agreement shall be extended, and the Escrow Agent shall continue to hold in escrow the portion of the then Escrow Amount in dispute, in each case until the final resolution of such Indemnification Claim or litigation or proceeding relating thereto, all as more particularly provided in the Escrow Agreement.

  • No Holdback The proceeds of each Mortgage Loan have been fully disbursed (except in those cases where the full amount of the Mortgage Loan has been disbursed but a portion thereof is being held in escrow or reserve accounts pending the satisfaction of certain conditions relating to leasing, repairs or other matters with respect to the related Mortgaged Property), and there is no obligation for future advances with respect thereto.

  • Escrow Fund (a) At the Closing, Acquiror will deposit with the Escrow Agent an amount equal to the sum of (a) Three Million Dollars ($3,000,000) (the “Stakeholders’ Agent Escrow Amount”), plus (b) Fifty Five Million Dollars ($55,000,000) (the “Indemnity Escrow Amount” and collectively with the Stakeholders’ Agent Escrow Amount, the “Escrow Fund”). The Escrow Fund will be governed by the terms set forth in the Escrow Agreement. The Indemnity Escrow Amount will be available (i) to indemnify Acquiror pursuant to the indemnification provisions set forth in this Section 9, and (ii) to make any payment on behalf of the Former Stakeholders to Acquiror pursuant to Section 2.13. The Stakeholders’ Agent Escrow Amount will be available, without the requirement of any consent or approval by Acquiror, to indemnify and hold the Stakeholders’ Agent harmless against any liability, loss, damage, penalty, fine, cost or expense incurred by the Stakeholders’ Agent without gross negligence or willful misconduct on the part of the Stakeholders’ Agent and arising out of or in connection with the acceptance or administration of its duties under this Agreement and the Escrow Agreement, and in no event will any of such liabilities, losses, damages, penalties, fines, costs or expenses payable to the Stakeholders’ Agent be paid from the Indemnity Escrow Amount. (b) On the first Business Day following the Initial Claim Termination Date, Acquiror and the Stakeholders’ Agent will be obligated to instruct the Escrow Agent to pay to each Former Stakeholder, in immediately available funds from the Indemnity Escrow Amount of the Escrow Fund, a dollar amount equal to each such Former Stakeholder’s Pro Rata Portion of the difference between (i) the aggregate amount then held in the Indemnity Escrow Amount of the Escrow Fund and (ii) the sum of (A) Twenty Three Million Dollars ($23,000,000) (the “Three Year Escrow Amount”) and (B) a reserve amount equal to the estimate of Damages set forth in the Claims Notices relating to all pending and unresolved Claims. On the first Business Day following the Final Claim Termination Date, Acquiror and the Stakeholders’ Agent will be obligated to instruct the Escrow Agent to pay to each Former Stakeholder, in immediately available funds from the Indemnity Escrow Amount of the Escrow Fund, a dollar amount equal to each such Former Stakeholders’ Pro Rata Portion of the difference between (i) the aggregate amount then held in the Indemnity Escrow Amount of the Escrow Fund and (ii) a reserve amount equal to the estimate of Damages set forth in the Claims Notices relating to all pending and unresolved Claims. Any reserve amounts held in the Indemnity Escrow Amount of the Escrow Fund following the Final Claim Termination Date that are not expended in resolving a Claim shall be disbursed to the Former Stakeholders upon final resolution of the Claim to which it relates or if a reasonable person familiar with such matters would determine that such claim has been fully and finally abandoned or waived by the Third Party asserting the claim. Following the resolution of all Claims, the Stakeholders’ Agent Amount shall be disbursed to the Former Stakeholders as set forth in the Escrow Agreement.

  • Escrow Deposit Concurrently with the execution and delivery of this Agreement, the Holder will deliver [the sum of ____________________ Dollars ($_____________) in lawful money of the United States of America by wire transfer of immediately available funds] [and] [[ ] Class A Trust Certificates] [and] [[ ] Class B Trust Certificates] in accordance with Section 14 of the Series Supplement] (the "Escrow Deposit"), to Escrow Agent to be held by Escrow Agent in escrow on the terms and conditions hereinafter provided. Escrow Agent hereby acknowledges receipt of the Escrow Deposit. Any cash amounts in the Escrow Deposit may be increased or decreased in accordance with the terms of Section 2.02(i)(vi) of the Warrant Agreement and the terms of this agreement will apply with equal force and effect to any such increased or decreased cash amounts in the Escrow Deposit.