Requesting a Borrowing Clause Samples
The "Requesting a Borrowing" clause defines the process by which a borrower formally asks to draw funds under a loan agreement. Typically, this clause outlines the required notice period, the information that must be included in the borrowing request (such as the amount, date, and type of loan), and any conditions that must be satisfied before the lender will disburse funds. Its core practical function is to ensure that both parties have a clear, standardized procedure for initiating a loan drawdown, thereby reducing misunderstandings and administrative errors.
Requesting a Borrowing. To request a Borrowing the Borrower shall notify the Administrative Agent of such request in writing substantially in the form of Exhibit A (each, a “Borrowing Request”) (a) in the case of a LIBO Rate Borrowing, not later than 11:00 a.m. (Vancouver time) three Business Days before the date of the proposed Borrowing, or (b) in the case of a Base Rate Borrowing, not later than 11:00 a.m. (Vancouver time), one Business Day before the date of the proposed Borrowing; provided that any such notice of a Base Rate Borrowing to finance a Reimbursement Obligation shall not be given later than 1:00 p.m. (Vancouver time) on the date of the proposed Borrowing. Each Borrowing Request shall be irrevocable. The Administrative Agent and each Lender are entitled to rely and act upon any Borrowing Request given or purportedly given by the Borrower, and the Borrower hereby waives the right to dispute the authenticity and validity of any such request or resulting transaction once the Administrative Agent or any Lender has advanced funds based on such Borrowing Request. Each Borrowing Request shall specify the following information:
(i) the aggregate amount of each requested Borrowing;
(ii) the date of such Borrowing, which shall be a Business Day;
(iii) whether such Borrowing is to be a Base Rate Borrowing, a LIBO Rate Borrowing or a Letter of Credit;
(iv) in the case of a LIBO Rate Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and
(v) the location and number of the Borrower’s account to which funds are to be disbursed.