No commitment fee or ticking fee Clause Samples
The 'No commitment fee or ticking fee' clause specifies that the borrower is not required to pay any fees for the lender's commitment to provide funds or for the passage of time before the loan is drawn. In practice, this means that even if the lender sets aside funds or keeps a credit facility available for the borrower, the borrower will not incur periodic charges or upfront fees typically associated with such arrangements. This clause primarily benefits the borrower by reducing the overall cost of the financing and ensures that they are not penalized for delays or for not utilizing the facility immediately.
No commitment fee or ticking fee. No commitment fee is payable to the Facility Agent (for the account of a Lender) on any undrawn, uncancelled amount of any Commitment of that Lender for any day on which that Lender is a Defaulting Lender.