Lenders do not approve Sample Clauses
The "Lenders do not approve" clause defines the consequences if a lender fails to approve a loan or financing necessary for a transaction. Typically, this clause outlines the steps parties must take if financing is not secured, such as allowing either party to terminate the agreement without penalty or requiring notification within a certain timeframe. Its core function is to protect both parties from being obligated to proceed with a transaction when essential financing cannot be obtained, thereby allocating risk and providing a clear exit mechanism in the event of lender non-approval.
Lenders do not approve. (a) Other than in the case of a Hedging Desktop Banking Case if the Majority Lenders (acting reasonably) (x) do not approve of any Assumption (the “rejected Assumption”) used in any draft Banking Case or (y) any Baobab FPSO Renovation Desktop Assumption used in any draft Baobab FPSO Renovation Desktop Banking Case (the “rejected Baobab FPSO Renovation Desktop Assumption”), then:
(i) the Obligors’ Agent and the Majority Lenders (through the Technical Bank) shall seek to agree:
(A) the Assumption(s) to be used for the purposes of the relevant Banking Case instead of the rejected Assumption(s); and/or
(B) the Baobab FPSO Renovation Desktop Assumption(s) to be used for the purposes of the relevant Baobab FPSO Renovation Desktop Banking Case instead of the rejected Baobab FPSO Renovation Desktop Assumption(s);
(ii) if the Majority Lenders (through the Technical Bank) and the Obligors’ Agent have not been able to reach agreement on the relevant Assumption(s) and/or Baobab FPSO Renovation Desktop Assumption (as applicable) to be used in the preparation of the relevant Banking Case instead of the rejected Assumption and/or rejected Baobab FPSO Renovation Desktop Assumption (as applicable) by the date falling five Business Days before the Redetermination Date on which the Banking Case is due to be adopted then the relevant Assumption(s) and/or Baobab FPSO Renovation Desktop Assumption(s) (as applicable) shall be determined by the Majority Lenders (acting reasonably) and in relation to any Assumption in line with market practice for equivalent financings; and
(iii) the Modelling Bank (in consultation with the Technical Bank and the Obligors’ Agent) shall promptly upon the relevant Assumption(s) and/or Baobab FPSO Renovation Desktop Assumption (as applicable) being agreed between the Majority Lenders and the Obligors’ Agent or being determined pursuant to Clause 6.8(a)(ii):
(A) prepare a revised draft Banking Case using the Assumption(s) and/or Baobab FPSO Renovation Desktop Assumption (as applicable) so agreed or determined instead of the rejected Assumption(s) and/or Baobab FPSO Renovation Desktop Assumption (as applicable); and
(B) deliver (through the Agent) a copy of such revised draft Banking Case to the Obligors’ Agent, the Technical Bank and the Lenders (and such draft Banking Case shall be adopted as the current draft Banking Case in accordance with Clause 6.9 (Adoption of Banking Cases)).
(b) If the Majority Lenders:
(i) do not approve the designation of an...
Lenders do not approve. 7.8.1 If Majority Lenders do not approve, or are not deemed to have so approved, any of the Assumptions referred to the Lenders for approval pursuant to Clause 7.6 (Consideration by Lenders), such Assumptions will be determined by the Majority Lenders (acting reasonably). Promptly upon the unapproved Assumptions being determined by the Majority Lenders, the Technical Bank shall revise the draft Projection to reflect each such Assumption that has been so determined.
7.8.2 If the Majority Lenders (i) do not approve, or are not deemed to have approved, the designation of any Petroleum Asset as a Borrowing Base Asset or (ii) require conditions which (a) are more onerous than the CPs relating thereto in order for such designation to be effected and (b) are not acceptable to the Borrower, then the Technical Bank will promptly prepare a new draft Projection:
(A) based on the Assumptions that have been agreed, approved or determined in accordance with the preceding provisions of this Clause 7 (Projections); and
(B) that does not take account of the proposed Petroleum Asset as a Borrowing Base Asset.
7.8.3 If the Majority Lenders do not approve, or are not deemed to have approved, of an existing Borrowing Base Asset ceasing to be so designated or (ii) require conditions which (a) are more onerous than the CPs relating thereto in order for such designation to cease and (b) are not acceptable to the Borrower, then the Technical Bank will promptly prepare a new draft Projection:
(A) based on the Assumptions that have been agreed, approved or determined in accordance with the preceding provisions of this Clause 7 (Projections); and (B) that takes account of the relevant Borrowing Base Asset as a Borrowing Base Asset.