Line of Credit Commitments Clause Samples
The 'Line of Credit Commitments' clause defines the lender's obligation to provide a borrower with access to a specified amount of credit under agreed terms. This clause typically outlines the maximum borrowing limit, the conditions under which funds can be drawn, and any requirements the borrower must meet to access the credit, such as maintaining certain financial ratios or providing periodic financial statements. Its core practical function is to ensure both parties have a clear understanding of the available credit and the terms governing its use, thereby reducing uncertainty and managing financial risk for both lender and borrower.
Line of Credit Commitments. Subject to the terms and conditions set forth in this Agreement and so long as no Default or Event of Default has occurred and is continuing, during the Line of Credit Period, each Lender severally (and not jointly) agrees to lend to Borrower from time to time on a non-revolving basis (individually, a "Line of Credit Loan" and collectively, the "Line of Credit Loans") amounts not to exceed, in the aggregate at any one time outstanding, the lesser of: (a) such Lender's Line of Credit Commitment, or (b) such Lender's Pro Rata Share of the sum of the total Line of Credit Commitments of all of the Lenders minus the aggregate principal amount of all outstanding Letter of Credit Loans minus the aggregate undrawn face amount of all outstanding Letters of Credit minus the aggregate principal amount of all outstanding Line of Credit Loans; provided that, the Total Line of Credit Outstandings shall not at any one time exceed $60,000,000.00. The amount of the Line of Credit Commitments shall be reduced by the aggregate amount of principal payments made on the Line of Credit Loans and the Line of Credit Commitments shall terminate upon the making of any Term Loan. Loans under this Section 2.1 shall be made from the several Lenders ratably in proportion to their respective Pro Rata Shares. The failure of any Lender to make any Line of Credit Loan required under this Agreement shall not release any other Lender from its obligation to make Line of Credit Loans as provided herein. Each Line of Credit Loan shall bear interest on the outstanding principal amount thereof, for each day from the date such Loan is made until it becomes due, at a rate per annum equal to the LIBOR Rate. Such interest shall be payable on all such Line of Credit Loans monthly in arrears on the last day of each month (or the immediate subsequent Business Day if any such last day is not a Business Day) and at maturity. Any overdue principal of and, to the extent permitted by law, overdue interest on, any Line of Credit Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of three percent (3%) plus the rate otherwise in effect for such day.
Line of Credit Commitments. Prior to the Line of Credit Termination Date, each Lender severally and not jointly agrees, subject to the terms and conditions hereof, to make Line of Credit Loans (each individually a “Line of Credit Loan” and, collectively, the “Line of Credit Loans”) in Dollars to the Borrower from time to time up to the amount of such Lender’s Line of Credit Commitment in effect at such time; provided, however, the sum of the aggregate principal amount of Line of Credit Loans and L/C Obligations at any time outstanding shall not exceed the sum of all Line of Credit Commitments in effect at such time. Each Borrowing of Line of Credit Loans shall be made ratably by the Lenders in proportion to their respective Line of Credit Percentages. As provided in Section 2.5(a), and subject to the terms hereof, the Borrower may elect that each Borrowing of Line of Credit Loans be Base Rate Loans or Eurodollar Loans. Line of Credit Loans which are fully repaid in accordance with the terms of this Agreement may be reborrowed in accordance with the terms of this Agreement. Borrower acknowledges and agrees that, immediately prior to the effectiveness of this Agreement, the outstanding principal amount of the “Line of Credit Loans” under the Original Credit Agreement is $8,368,338.37, all of which hereby shall be deemed to have been, and hereby are, converted into a portion of the outstanding Term A Loan hereunder in like amount without constituting a novation.
Line of Credit Commitments. Subject to the terms and conditions hereof and relying upon the representations and warranties herein set forth, each Bank severally agrees to make Line of Credit Loans to the Borrowers at any time or from time to time on or after the date hereof and prior to the Line of Credit Expiration Date, provided that after giving effect to such Loan the aggregate amount of Line of -------- Credit Loans from such Bank shall not exceed (x) the lesser of (a) such Bank's Line of Credit Commitment or (b) such Bank's Ratable Share of the Borrowing Base less the portion of the Borrowing Base attributable to such Bank's Ratable Share of the Revolving Facility Usage. Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrowers may borrow, repay and reborrow pursuant to this Section 3.1.
Line of Credit Commitments