Unutilized Commitment Fee Clause Samples
An Unutilized Commitment Fee clause requires a borrower to pay a fee on the portion of a loan facility that has been committed by the lender but not yet drawn down or used by the borrower. Typically, this fee is calculated as a percentage of the undrawn amount and is charged periodically, such as quarterly or annually, for as long as the funds remain available but unused. The core function of this clause is to compensate the lender for reserving capital and to incentivize the borrower to utilize the committed funds efficiently, thereby addressing the risk of idle capital for the lender.
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Unutilized Commitment Fee. From and after the Closing Date and until the Maturity Date, Borrower shall pay to the Administrative Agent for the account of the Revolving Lenders, in accordance with their Pro Rata Shares, an unutilized commitment fee (the “Unutilized Commitment Fee”), which shall accrue, at the Applicable Unutilized Commitment Fee Margin, on the daily average excess, if any, of the Total Revolving Commitment over the sum of the principal amount of all Revolving Loans and LC Exposure, which excess shall be calculated quarterly, and shall be payable in arrears on the first (1st) day of each quarter commencing October 1, 2010.
Unutilized Commitment Fee. (i) US Borrowers shall pay to Agent, for the account of US Lenders (other than a Defaulting Lender), quarterly an Unutilized Commitment Fee at a rate equal to the Applicable Margin for Unutilized Commitment Fee multiplied by the amount by which the Maximum Credit exceeds the average principal balance of the outstanding Revolving Advances (excluding Swingline Advances) to US Borrowers and US Letter of Credit Obligations during the immediately preceding quarter (or part thereof) while this Agreement is in effect and for so long thereafter as any of the Obligations are outstanding, which fee shall be payable in arrears on the first (1st) day of each calendar quarter, commencing January 1, 2012.
(ii) Canadian Borrowers shall pay to Agent, for the account of Canadian Lenders, quarterly an Unutilized Commitment Fee at a rate equal to the Applicable Margin for Unutilized Commitment Fee multiplied by the amount by which the Canadian Revolving Loan Maximum Amount exceeds the average principal balance of the outstanding Revolving Advances (excluding Swingline Advances) to Canadian Borrowers and Canadian Letter of Credit Obligations during the immediately preceding quarter (or part thereof) while this Agreement is in effect and for so long thereafter as any of the Obligations are outstanding, which fee shall be payable in arrears on the first (1st) day of each calendar quarter, commencing January 1, 2012.
Unutilized Commitment Fee. For the account of the Incremental Revolving Facility Lender, an amount equal to 0.375% per annum multiplied by the actual daily amount by which the Incremental Revolving Facility Commitments exceeds the Outstanding Amount of Other Revolving Loans made pursuant to the First ABL Incremental Agreement; payable at the times and in the manner as otherwise specified with respect to other Revolving Facility Loans in Section 2.12(a) of the ABL Credit Agreement