Overadvance Arrangements Sample Clauses
An Overadvance Arrangements clause defines the terms under which a lender may allow a borrower to access funds exceeding the standard borrowing base or credit limit. Typically, this clause outlines the conditions, approval process, and any additional fees or requirements associated with such overadvances, such as temporary increases to address short-term cash flow needs. Its core practical function is to provide flexibility in lending arrangements, enabling borrowers to meet urgent financial obligations while managing the lender's risk exposure.
Overadvance Arrangements. Comply (and cause its Subsidiaries to comply) with the following requirements in respect of the Overadvanced Acquisition Funds (to the extent any Overadvanced Acquisition Funds exist):
(a) on the Closing Date and the Acquisition Funding Date, deposit all Overadvanced Acquisition Funds received on such date into the Overadvance Account;
(b) Parent and its Subsidiaries shall not withdraw, or request the withdrawal, of any amounts in the Overadvance Account unless on the date of such proposed withdrawal (i) conditions precedent set forth in Section 4.04 (a) and (b) are satisfied (for such purposes treating such disbursement as a Certain Funds Credit Extension), (ii) such amount is required to finance a Certain Funds Purpose and (iii) the Purchaser shall have delivered an Overadvance Disbursement Request to the Collateral Agent; provided, that, any amounts withdrawn which are not so applied within five days such date to finance a Certain Funds Purpose shall be re-deposited in the Overadvance Account and permitted to be disbursed in accordance with the requirements above at a future time;
(c) upon the expiry of the Certain Funds Period, apply any amounts held in the Overadvance Account in accordance with Section 2.05(b)(v) and;
(d) upon (i) the delivery of an Overadvance Disbursement Request in accordance with the Overadvance Account Escrow Agreement and satisfaction of the other conditions set forth in clause (b) above and (ii) the expiration of the Certain Funds Period, the Collateral Agent shall authorize the Account Custodian (as defined in the Overadvance Account Escrow Agreement) to release from the Overadvance Account (x) in the case of immediately preceding clause (i), funds in the amount set forth in such Overadvance Disbursement Request to the account set forth therein and (ii) in the case of clause (ii) above, all of the funds held therein to the Administrative Agent for application in accordance with Section 2.05(b)(v), provided that nothing in this Agreement shall obligate such Account Custodian or the Collateral Agent to release any funds in excess of the amount held in the Overadvance Account from time to time.