Loan and Collateral Sample Clauses
Loan and Collateral. (a) In conjunct on with the execution of this Agreement, Borrower will execute and deliver to Lender a Promissory Note dated as of the date of this Agreement in the maximum principal amount of $500,000.00 payable to Lender in substantially the form attached hereto as Exhibit “A” (which Promissory Note along with any renewals, extensions and amendments thereto is hereinafter referred to as the “Note”). Borrower shall be entitled to an initial advance of $350,000.00 in principal amount under the Note at Closing, and subsequent advances (each, an “Advance”) after Closing up to an aggregate principal amour{ together with the initial advance of $500,000.00, as follows: (i) each Advance must be at least $20,000.00, (ii) Borrower shall provide Lender with a written request for each Advance at least five (5) days prior to funding of such Advance, which must set forth a proper use of proceeds (as provided in Section 8(i) hereof), (iii) no default or Event of Default shall have occurred under this Agreement or any other Loan Document, (iv) each Advance is subject to and contingent upon Lender determining, in its discretion, that Borrower is creditworthy, and (v) Borrower and its affiliates and related parties shall not be in default of any obligations owed to Lender. No Advances will be made after the expiration of six (6) months from the date of this Agreement.
(b) In consideration of the extension of credit under the Note and to secure all amounts owing under the Note and any other indebtedness now or hereafter owed by Borrower to Lender (collectively, the “Indebtedness”), Guarantor shall execute and deliver to Lender a guaranty of the Indebtedness (the “Guaranty”) and Borrower will execute and deliver to Lender (i) a Subordinated Deed of Trust covering al] of Borrower’s oil and gas properties (the “Mortgaged Properties”), and (ii) a Security Agreement covering all of the non-real property assets of Borrower other than those assets located on the Mortgaged Properties (the “Pledged Assets”) (said Deed of Trust and Security Agreement are referred to collectively herein as the “Security Documents”). The Note, this Agreement, the Security Documents, the Guaranty and all other documents or instruments related thereto. are referred to herein as the “Loan Documents”.
Loan and Collateral. (a) In conjunction with the execution of this Agreement, Borrower will execute and deliver to Lender (i) Promissory Note No. 1 dated as of the date of this Agreement in the original principal amount of $325,000.00 payable to Lender in substantially the form attached hereto as Exhibit “A”, and (ii) Promissory Note No. 2 dated as of the date of this Agreement in the original principal amount of $175,000.00 payable to Lender in substantially the form attached hereto as Exhibit “B” (which Promissory Notes along with any renewals, extensions and amendments thereto are hereinafter referred to as the “Notes”). Borrower shall only be entitled to a single advance of the entire original principal amount under each of the Notes at Closing.
(b) In consideration of the advancement of credit under the Notes and to secure all amounts owing under the Notes and any other indebtedness now or hereafter owed by Borrower to Lender (collectively, the “Indebtedness”), Guarantor will execute and deliver to Lender a guaranty of the Indebtedness (the “Guaranty”). The Notes, this Agreement, the Guaranty and all other documents or instruments related thereto, are referred to herein as the “Loan Documents”.
Loan and Collateral