Optional Increase in Aggregate Commitments Clause Samples
The "Optional Increase in Aggregate Commitments" clause allows the borrower to request an increase in the total amount of credit available under a loan agreement, subject to lender approval. Typically, this clause outlines the process for requesting additional commitments, such as notice requirements and conditions that must be met, and may specify limits on the maximum increase or the number of times increases can be requested. Its core function is to provide flexibility for the borrower to access additional funds as needed without renegotiating the entire agreement, thereby streamlining the process of expanding credit and accommodating future financing needs.
Optional Increase in Aggregate Commitments. (i) Subject to the conditions set forth in Section 2.06(c)(ii), the Borrower may increase the Aggregate Revolving Commitments and/or the Aggregate Term Commitments then in effect with the prior consent of the Administrative Agent by increasing the Revolving Commitment and/or Term Commitment of a Lender or by causing a Person that at such time is not a Lender to become a Lender (an “Additional Lender”).
(ii) Any increase in the Aggregate Revolving Commitments and/or the Aggregate Term Commitments shall be subject to the following additional conditions:
(A) such increase shall not be less than $25,000,000 and shall be in a whole multiple of $5,000,000 in excess thereof unless the Administrative Agent otherwise consents, and no such increase shall be permitted if after giving effect thereto the cumulative increases of the Aggregate Commitments pursuant to this Section 2.06(c) would exceed $225,000,000;
(B) no Default shall have occurred and be continuing at the effective date of such increase;
(C) on the effective date of such increase, no Eurodollar Borrowings shall be outstanding or if any Eurodollar Borrowings are outstanding, then the effective date of such increase shall be the last day of the Interest Period in respect of such Eurodollar Borrowings unless the Borrower pays compensation required by Section 5.02;
(D) no Lender’s Revolving Commitment and/or Term Commitment may be increased without the consent of such Lender;
(E) if the Borrower elects to increase the Aggregate Revolving Commitments by increasing the Revolving Commitment of a Revolving Lender, the Borrower and such Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of Exhibit G-1 (a “Commitment Increase Certificate”), and, if requested, the Borrower shall deliver a new Note payable to the order of such Revolving Lender in a principal amount equal to its Revolving Commitment after giving effect to such increase, and otherwise duly completed; and
(F) If the Borrower elects to increase the Aggregate Revolving Commitments by causing an Additional Lender to become a party to this Agreement, then the Borrower and such Additional Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of Exhibit G-2 (an “Additional Lender Certificate”), together with an Administrative Questionnaire, and, if requested, the Borrower shall deliver a Note payable to the order of such Additional Lender in a principal amount e...
Optional Increase in Aggregate Commitments. Subject to the conditions set forth in Section 2.06(c) and with the prior consent of the Administrative Agent, but without the consent of any other Lender or any Issuing Bank, the Borrower may increase the Aggregate Commitments then in effect by increasing the Commitment of a Lender or by causing a Person that at such time is not a Lender to become a Lender (an “Additional Lender”). The exercise of the option granted in this Section 2.06(c) shall count as an Interim Redetermination for purposes of determining the number of Interim Redeterminations permitted by Section 2.07(b) and may not be exercised if an Interim Redetermination is not otherwise available to the Borrower pursuant to such Section.