Non-recoverable draw Sample Clauses

A Non-recoverable Draw clause establishes that any funds advanced or drawn under a financial agreement cannot be reclaimed by the lender, regardless of subsequent events. In practice, this means that once a borrower receives a drawdown—such as a loan disbursement or an advance on a credit facility—the lender cannot demand repayment of that specific amount except as scheduled under the agreement, even if the underlying transaction is later canceled or altered. This clause provides certainty to the borrower regarding the finality of received funds and protects them from unexpected repayment demands, thereby ensuring financial predictability and stability in the arrangement.