Utilisation Conditions for the Facility Sample Clauses
The Utilisation Conditions for the Facility clause defines the specific requirements and procedures that must be met before a borrower can draw funds from a loan facility. Typically, this includes submitting a formal drawdown request, providing necessary documentation, and ensuring that all preconditions—such as compliance with covenants or the absence of default—are satisfied. By setting these conditions, the clause ensures that the lender maintains control over disbursements and that the borrower meets agreed standards before accessing funds, thereby reducing the lender’s risk and promoting responsible borrowing.
Utilisation Conditions for the Facility. 3.2.1 Save as otherwise provided herein, the Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:
(a) no later than 10.00 a.m. three Business Days before the proposed Utilisation Date, the Agent has received a duly completed Utilisation Request from the Borrower;
(b) the proposed Utilisation Date is a Business Day falling within the Availability Period;
(c) on and as of the proposed Utilisation Date:
(i) no Default is continuing or would result from the proposed Loan; and
(ii) the Representations are true in all material respects; and
(d) the currency and amount of the Utilisation comply with Clause 3.4 (Currency and Amount).
3.2.2 The Banks will not be obliged to satisfy the Utilisation Request unless the Fixed Rate has been agreed hereunder.
Utilisation Conditions for the Facility. Save as otherwise provided herein, a Letter of Credit will be issued at the request of a Borrower if:
3.1.1 no less than three Business Days before the proposed Utilisation Date, the Agent has received a completed Utilisation Request from such Borrower;
3.1.2 the proposed Utilisation Date is a Business Day falling within the Availability Period;
3.1.3 the first day of the Term of the Letter of Credit is a Business Day falling within the Availability Period;
3.1.4 the proposed Expiry Date of the Letter of Credit shall be:
(a) in the case of any Letter of Credit providing Funds at Lloyd’s for the 2012 and prior open underwriting years of account of the Managed Syndicate only, 31 December 2015; and
(b) in the case of any Letter of Credit providing Funds at Lloyd’s for the 2013 and prior open underwriting years of account of the Managed Syndicate only, 31 December 2016;
3.1.5 the Letter of Credit is substantially in the form set out in Schedule 6 (Form of Letter of Credit);
3.1.6 the beneficiary of such Letter of Credit is Lloyd’s; and
3.1.7 the conditions set out in Clause 3.2 (Currency and amount) are satisfied, provided that no Letter of Credit shall be issued for the account of the Account Party at any time when the Outstandings exceed (or would after the issuance of such Letter of Credit exceed) the Borrowing Base of the Account Party at such time.
Utilisation Conditions for the Facility. Save as otherwise provided herein, a Letter of Credit will be issued at the request of the Account Party on behalf of an Applicant if:
3.1.1 no later than 10.00 a.m. two Business Days before the proposed Utilisation Date, the Agent has received a duly completed Utilisation Request from the Account Party;
3.1.2 the proposed Utilisation Date is a Business Day falling within the Availability Period;
3.1.3 the proposed Original Sterling Amount of such Letter of Credit is less than or equal to the Available Facility;
3.1.4 the Letter of Credit is substantially in the form set out in Schedule 5 (Form of Letter of Credit) or in such other form requested by the Account Party which is approved by the Banks (such approval not to be unreasonably withheld or delayed);
3.1.5 the beneficiary of such Letter of Credit is Lloyd’s;
3.1.6 on and as of the proposed Utilisation Date:
(a) no Event of Default or Potential Event of Default has occurred and is continuing; and
(b) the Representations are true in all material respects; and
3.1.7 the Agent has received evidence acceptable to it that the Charged Portfolio has been delivered to the Custodian and the amount of the Charged Portfolio is at least equal to the Required Value.