Loans and Reserves Clause Samples
The 'Loans and Reserves' clause defines the rules and conditions governing the extension of loans and the maintenance of financial reserves by a party, typically in a financial or commercial agreement. It outlines how loans are to be issued, the requirements for maintaining adequate reserve funds, and may specify thresholds or ratios that must be met. For example, it might require a borrower to keep a certain percentage of funds in reserve to ensure repayment ability. This clause serves to protect the lender by ensuring that the borrower remains financially stable and capable of meeting their obligations, thereby reducing the risk of default.
Loans and Reserves. Lender agrees, for so long as no Default or Event of Default exists, to make Revolving Credit Loans to Borrower from time to time, as requested by Borrower in the manner set forth in subsection 3.1.1 hereof, up to a maximum principal amount at any time outstanding equal to the Borrowing Base at such time minus the LC Amount and reserves, if any. Lender shall have the right to establish reserves in such amounts, and with respect to such matters, as Lender shall deem necessary or appropriate, against the amount of Revolving Credit Loans which Borrower may otherwise request under this subsection 1.1.1, including, without limitation, with respect to (i) price adjustments, damages, unearned discounts, returned products or other matters for which credit memoranda are issued in the ordinary course of Borrower’s business; (ii) shrinkage, spoilage and obsolescence of Inventory; (iii) slow moving Inventory; (iv) other sums chargeable against Borrower’s Loan Account as Revolving Credit Loans under any section of this Agreement; (v) amounts owing by Borrower to any Person to the extent secured by a Lien on, or trust over, any Property of Borrower; and (vi) such other matters, events, conditions or contingencies as to which Lender, in its reasonable credit judgment, determines reserves should be established from time to time hereunder. The Revolving Credit Loans shall be further evidenced by the Revolving Credit Note and shall be secured by all of the Collateral.
Loans and Reserves. The aggregate amount of the Revolving Credit Loans to be made by each Lender (such Lender's "Revolving Credit Loan Commitment"), pursuant to the terms hereof, shall be the amount set below such Lender's name on the signature pages hereof. The aggregate principal amount of the Revolving Credit Loan Commitments is Fifty-Five Million Dollars ($55,000,000). The percentage equal to the quotient of (x) each Lender's Revolving Credit Loan Commitment, divided by (y) the aggregate of all Revolving Credit Loan Commitments, is that Lender's "Revolving Credit Percentage". Subject to all of the terms and conditions of this Agreement, each Lender agrees, for so long as no Default or Event of Default exists, to make Revolving Credit Loans to Borrower from time to time, as requested by Borrower in accordance with the terms of Section 3.1 hereof, up to a maximum principal amount at any time outstanding equal to the product of (A) the Borrowing Base at such time multiplied by (B) such Lender's Revolving Credit Percentage. It is expressly understood and agreed that Agent and Lenders may use the Borrowing Base as a maximum ceiling on Revolving Credit Loans outstanding to Borrower at any time. If the unpaid balance of the Revolving Credit Loans should exceed the ceiling so determined or any other limitation set forth in this Agreement, such Revolving Credit Loans shall nevertheless constitute Obligations that are secured by the Collateral and entitled to all the benefits thereof. In no event shall Lenders be required to make a Revolving Credit Loan at any time that there exists a Default or an Event of Default. Agent shall have the right to establish reserves in such amounts, and with respect to such matters, as Agent shall deem necessary or appropriate in the reasonable exercise of Agent's credit judgment, against the amount of Revolving Credit Loans which Borrower may otherwise request under this Section 1.1.1., including, without limitation, with respect to (i) price adjustments, damages, unearned discounts, returned products or other matters for which credit memoranda are issued in the ordinary course of Borrower's business; (ii) shrinkage, spoilage and obsolescence of Inventory; (iii) slow moving Inventory; (iv) other sums chargeable against Borrower's Loan Account as Revolving Credit Loans under any section of this Agreement; (v) amounts owing by Borrower to any Person to the extent secured by a Lien on, or trust over, any Property of Borrower; and (vi) such other matter...
Loans and Reserves. Lender agrees, for so long as no Default or Event of Default exists and subject to the satisfaction of the applicable conditions precedent set forth in Sections 9 and 9A, to make Revolving Credit Loans to Borrower from time to time, as requested by Borrower in the manner set forth in subsection 3.1.1 hereof, up to a maximum principal amount at any time outstanding equal to the lesser of (a) the Maximum Amount minus the LC Amount, or (b) the Borrowing Base at such time minus the LC Amount, and reserves, if any. Lender shall have the right to establish reserves in such amounts, and with respect to such matters, as Lender shall in good fait▇ ▇▇▇▇ ▇▇▇essary or appropriate, against the amount of Revolving Credit Loans which Borrower may otherwise request under this subsection 1.1.1, including, without limitation, with respect to (i) price adjustments, damages, unearned discounts, returned products or other matters for which credit memoranda are issued in the ordinary course of Borrower's business; (ii) shrinkage, spoilage and obsolescence of Inventory; (iii) slow moving Inventory;
Loans and Reserves. Use of Proceeds......................................................................... 1 --------------- 1.
Loans and Reserves. 1 1.1.2. Use of Proceeds.......................................................................................1 1.2. LETTERS OF CREDIT; LC GUARANTIES............................................................................2 1.2.1. Request for Letter of Credit..........................................................................2
Loans and Reserves. The aggregate amount of the Revolving Credit Loans to be made by each Lender (such Lender's "Revolving Credit Loan Commitment"), pursuant to the terms hereof, shall be the amount set below such Lender's name on the signature pages hereof. The aggregate principal amount of the Revolving Credit Loan Commitments is Fifty Million Dollars ($50,000,000). The percentage equal to the quotient of (x) each Lender's Revolving Credit Loan Commitment, divided by (y) the aggregate of all Revolving Credit Loan Commitments, is that Lender's "Revolving Credit Percentage". Subject to all of the terms and conditions of this Agreement, each Lender agrees, for so long as no Default or Event of Default exists, to make Revolving Credit Loans to Borrower from time to time, as requested by Borrower in the manner set forth in subsection 3.1.1 hereof, up to a maximum principal amount at any time outstanding equal to the product of (A) the Borrowing Base at such time minus the LC Amount and reserves, if any, multiplied by (B) such Lender's Revolving Credit Percentage. Agent shall have the right to establish reserves in such amounts, and with respect to such matters, as Agent shall deem necessary or appropriate, against the amount of Revolving Credit Loans which Borrower may otherwise request under this subsection 1.1.1, including, without limitation, with respect to: (i) price adjustments, rebates, damages, unearned discounts, returned products or other matters for which credit memoranda are issued in the ordinary course of Borrower's business; (ii) shrinkage, spoilage and obsolescence of Inventory; (iii) slow moving Inventory;
Loans and Reserves. Each Lender severally and not jointly agrees, for so long as no Default or Event of Default exists, to make Revolving Credit Loans to Borrower from time to time, as requested by Borrower in the manner set forth in subsections 3.1.1 and 3.1.4 hereof, up to a maximum principal amount at any time outstanding equal to such Lender's Commitment Percentage of the Borrowing Base. Notwithstanding the foregoing, Agent shall have the right to establish reserves in such amounts and with respect to such matters, as Agent shall deem necessary or appropriate in the exercise of its commercially reasonable judgment, against the amount of Revolving Credit Loans which Borrower may otherwise request hereunder (any such sums, the "Reserves"
Loans and Reserves. Subject to all of the terms and conditions of this Agreement, between the Seventh Amendment Effective Date and March 14, 2006, each Lender agrees, for so long as no Event of Default exists and is continuing, to make, upon request of Borrower, additional Revolving Credit Loans to Borrower at a time when the unpaid balance of Revolving Credit Loans exceeds, or would exceed with the making of any such Revolving Credit Loan, the Maximum Revolving Loan Borrowing Base (any such Loan or Loans being herein referred to individually as an "Overline" and collectively as "Overlines"). The maximum amount of Overlines any Lender shall be required to make shall not exceed such Lender's Overline Commitment and the total amount of all such Overline Commitments is $5,000,000. Agent shall enter such Overlines as debits in the Loan Account. At no time shall the sum of the aggregate amount of outstanding Revolving Credit Loans (excluding Overlines) plus outstanding Overlines plus the LC Amount exceed the Collateral Borrowing Base. In the event any such excess exists, Borrower shall immediately repay the amount thereof. All Overlines shall be repaid on March 14, 2006 or upon demand after the occurrence of and during the continuation of an Event of Default, shall be secured by the Collateral, shall bear interest as provided in this Agreement for Revolving Credit Loans generally and shall be deemed Revolving Credit Loans for all other purposes of this Agreement and the other Loan Documents; provided that any repayment of the Revolving Credit Loans or any payment of interest thereon made while Overlines are outstanding shall be applied first to outstanding Overlines and interest thereon in accordance with each Lender's Overline Percentages. Any Overline to be made by Lenders pursuant to the terms hereof shall be made by Lenders ratably in accordance with their Overline Percentages."
Loans and Reserves. Each Lender agrees severally, for so long as no Default or Event of Default exists, to make Revolving Credit Loans to Borrowers from time to time, as requested by Borrowers in the manner set forth in subsection 3.1.1 hereof, up to a maximum principal amount at any time outstanding equal to such Lender's Pro Rata Percentage of the Borrowing Base at such time less reserves, if any. No Lender's portion of the Loans shall at any time exceed its respective Pro Rata Share. Agent shall have the right to establish reserves in such amounts, and with respect to such matters, as Agent shall deem necessary or appropriate, against the amount of Revolving Credit Loans which Borrowers may otherwise request under this subsection 1.1.1, including, without limitation, with respect to: (i) price adjustments, damages, unearned discounts, returned products or other matters for which credit memoranda are issued in the ordinary course of Borrowers' business; (ii) shrinkage, spoilage and obsolescence of Inventory; (iii) slow moving Inventory;
Loans and Reserves. Lender agrees, for so long as no ------------------ Default or Event of Default exists, to make Revolving Credit Loans to Borrowers from time to time, as requested by Borrowers in the manner set forth in Section -------
3.1.1 up to a maximum principal amount at any time outstanding equal to the ----- lesser of (A) the Borrowing Base at such time, or (B) the Revolving Credit