Loan Note Guaranty definition
Examples of Loan Note Guaranty in a sentence
Bank shall have received a USDA Conditional Commitment for a USDA Rural Development B & I Loan Note Guaranty of 80% for the Loan in form and substance acceptable to Bank.
Prior to closing, and within ten (10) days of each month thereafter until such time as USDA has issued the Loan Note Guaranty, Bank shall receive a current Balance Sheet, acceptable to Bank, and prepared in accordance with GAAP which shall reflect the assets and liabilities of Borrower (the “Post Closing Balance Sheet”).
Furthermore, if, at any time, the USDA requests a correction or modification to any of the Loan documents as a condition precedent to issuance of its Loan Note Guaranty or otherwise, Borrower and Guarantors, as the case may be, shall agree to such modification and execute the appropriate documents to effect such modification as requested by Bank or USDA.
If at any time, for any reason, USDA withdraws, terminates or cancels its Conditional Commitment or Loan Note Guaranty, Bank may cease making advances under the Note until such time as Bank receives a written acknowledgement from USDA that the Conditional Commitment or Loan Note Guaranty as they case may be, has been reinstated or affirmed upon terms and conditions satisfactory to Bank.
In the event such Loan Note Issuer fails to reimburse the Loan Note Guarantor for the full amount of any drawing under a Loan Note Guaranty by 10:00 a.m. on the Honor Date, the Loan Note Guarantor will promptly notify the Administrative Agent who will in turn promptly notify each Lender.
The issuance of the Loan Note Guaranty shall constitute usage of the Revolving Loan Commitment and the Revolving Loan Commitment Amount.
Any action taken or omitted to be taken by the Issuing Bank under or in connection with the Loan Note Guaranty, if taken or omitted in the absence of gross negligence or willful misconduct, shall be binding upon the Borrower and each Lender and shall not create or result in any liability of the Issuing Bank to the Borrower or any Lender.
For purposes of calculating the utilization fee, Bid Loans and Loan Note Guaranty Obligations (except to the extent such Loan Note Guaranty Obligations have been Cash Collateralized) shall be deemed usage of the Commitments by each Bank based on its Pro Rata Share.
The Borrowers shall pay to the Administrative Agent for the pro rata account of each Lender participating in the Loan Note Guaranty, a guaranty fee (the "Guaranty Fee") computed at a rate equal to the then Applicable Margin for LIBO Rate Loans multiplied by the amount of the Loan Note Guaranty, computed on a quarterly basis in arrears on each Quarterly Payment Date until payment and/or termination in full of all Loan Note Guaranty Obligations.
Each giving of a Notice of Revolving Borrowing or a Letter of Credit Notice (and the making of the request for the Borrowing of the Term Loans set forth in Section 2.2(b)), and the consummation of each Borrowing or issuance of a Letter of Credit or Loan Note Guaranty, shall be deemed to constitute a representation by the Borrower that the statements contained in subsections (b) and (c) above are true, both as of the date of such notice or request and as of the relevant Borrowing Date or date of issuance.