The "Future Advances" clause in a contract specifies that the lender agrees to provide additional funds to the borrower at a later date, under predetermined conditions. It outlines the terms and conditions for these subsequent loans, ensuring they are legally tied to the original contract.
Future Advances. Upon request of Borrower, the original holder of the Note may make Future Advances to Borrower, prior to cancellation of this Deed to Secure Debt. Such Future Advances, with interest thereon, shall be secured by this Deed to Secure Debt when evidenced by promissory notes stating that said notes are secured hereby.
The Term Lending Agreement provides for asset purchases and future advances by the Administrative Agent on behalf of the Buyer of up to $900,000,000 (the “Facility”) for certain pre-identified assets. The Facility will be partially drawn on the Closing Date and, upon the satisfaction of certain conditions, on the dates of any future advances and future purchases.
The Agreement provides for the ability of the Company to request additional loan amounts up to $211,000 (the “Future Advances”), inclusive of the outstanding balances of certain credit cards (the “Cards”) used exclusively by the Company of which are issued in the name of the Executive. The portion of the principal amount of the Agreement (the “Principal Amount”) comprised of the Initial Principal Amount and the Future Advances (and excluding the outstanding balances on the Cards), accrues interest at an annual rate of 12%, or 18% in the event of default.
Future Advances. This Mortgage is given to secure not only existing indebtedness, but also future advances (whether such advances are obligatory or are to be made at the option of Agent or Lenders, or otherwise) made by Agent or Lenders under the Credit Agreement, to the same extent as if such future advances were made on the date of the execution of this Mortgage. The total amount of indebtedness that may be so secured may decrease or increase from time to time, but the maximum principal amount of all indebtedness secured hereby shall, in no event, exceed $150,000,000, exclusive of interest thereon, and other costs, amounts and disbursements as provided herein and in the other Loan Documents. THE PARTIES AGREE THAT THIS MORTGAGE CONSTITUTES A COLLATERAL REAL ESTATE MORTGAGE PURSUANT TO SDCL 44-8-26, AND IS SUBJECT TO THE PROVISIONS OF SDCL 44-8-26.
The loan includes an initial advance of $29.0 million dollars and future advances of up to $5.3 million dollars for tenant improvements, leasing commissions and capital expenditures.
Future Advances. The parties hereby agree that Section 2.1 of the Loan Agreement is hereby revised to provide that any payments on the Loan by Borrower shall reduce the Loan Commitment Amount to the then-outstanding principal balance of the Loan after taking into account the amount of such payments, and thereafter, Borrower shall not be entitled to any future Advances without the prior written consent of Lender.
FUTURE ADVANCES. In addition to the Note, this Mortgage secures all future advances made by Lender to Borrower or Grantor whether or not the advances are made pursuant to a commitment. Specifically, without limitation, this Mortgage secures, in addition to the amounts specified in the Note, all future amounts Lender in its discretion may loan to Borrower or Grantor, together with all interest thereon; however, in no event shall such future advances (excluding interest) exceed in the aggregate $5,642,000.00.
Any Future Advance shall be made in connection with the Addition of Additional Mortgaged Properties; provided, however, Borrower may request that a Future Advance made pursuant to Section 2.02(c)(2)(A) (Future Advances) above be made without the Addition of Additional Mortgaged Property based on compliance with the terms of the Future Advance Schedule and the Underwriting and Servicing Requirements subject to the terms of this Section 2.02(c)(2) (Future Advances) and Section 2.02(b) (Limitations on Executions). Such Future Advance shall be made during the period beginning on the First Anniversary and ending on December 31, 2024, but not more than once per year.”
Future Advances; Rhode Island Open-End Mortgage. This Mortgage permits and secures any and all current and future advances to Mortgagor evidenced by (or pursuant to) any one or more of the following: the Note, the Loan Agreement, and the other Loan Documents, such other note or notes as may be signed by Mortgagor payable to Lender and such other agreement(s) as may be entered into by Mortgagor with Lender, and signed by Borrower. The unpaid principal balance of indebtedness outstanding under this Mortgage shall at no time exceed Thirty-Two Million Five Hundred Thousand and 00/100 Dollars ($32,500,000.00). Borrower will accept notices pursuant to R.I.G.L. §34-25-10(B) and §34-25-11 at the address and in the manner specified in Section 8.8 of this Mortgage.
Future Advances. (a) Lender may make multiple advances (each, an “Advance” and collectively, the “Advances”) to Borrower under this Note up to the amount of the Maximum Credit. (b) Borrower shall notify Lender in writing when it wishes to draw upon this Note, by not less than three (3) Business Days’ notice prior to the date of the Advance, which notice shall specify the date of the Advance and the principal amount thereof. Lender shall be under no obligation to make a particular Advance. However, if Lender elects to make a particular Advance, Lender shall advance the requested funds on the date specified in such notice. Notwithstanding the foregoing, in no event will an Advance be made if an Event of Default shall have occurred and be continuing under this Note. The ability of Borrower to request or Lender to make any Advances hereunder shall terminate on December 1, 2023, unless this Note is earlier terminated as provided for herein (in either event, the “Termination Date”).
In addition, pursuant to the terms and conditions of the Indenture and Credit Agreement, Goldman has agreed to provide $3.6 million of additional future advances (the "Committed Advances"), and may provide up to $11.6 million of additional future discretionary advances, in connection with certain outstanding funding commitments under mortgage assets owned by the Issuer and financed under the Indenture and Credit Agreement (the "Mortgage Assets").
Future Advances. This Mortgage is given to secure not only existing indebtedness, but also such future advances, whether such advances are obligatory or are to be made at the option of the Mortgagee, or otherwise, as are made within twenty (20) years from the date hereof, to the same extent as if such future advances were made on the date of the execution of this Mortgage. The total amount of indebtedness that may be so secured may decrease or increase from time to time, but the total unpaid principal balance so secured at one time shall not exceed $13,000,000.00, plus interest thereon, and any disbursements made for the payment of taxes, levies, insurance or other liens on the Mortgaged Property, plus interest on such disbursements. The provisions of this paragraph shall not be construed to imply any obligation on Mortgagee to make any future advances to Mortgagor, it being the intention of the parties that any future advances shall be solely at the discretion and option of the Mortgagee in accordance with the terms of the Loan Documents.
Future Advances. The total amount that may be secured hereunder may decrease or increase from time to time, within twenty (20) years from the date hereof, but the total unpaid balance so secured at one time shall not exceed [______________] Dollars ([______________]), plus interest thereon, plus any disbursements made for the payment of taxes, levies or insurance on the Land, with interest on such disbursements at the default rate provided in the Promissory Note, plus charges and Future Advances.
Consolidation of Future Advances. Any future advances made to the Mortgagor prior to the origination of the Mortgage Loan have been or will be consolidated with the outstanding principal amount secured by the Mortgage and evidenced by the Note, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term. Except with respect to Second Lien Mortgage Loans, the lien of the Mortgage securing the consolidated principal amount is expressly insured as having first lien priority with respect to each Mortgage Loan, by a title insurance policy, an endorsement to the policy insuring the Mortgagee’s consolidated interest or by other title evidence acceptable to Fannie Mae and Freddie Mac. The consolidated principal amount does not exceed the original principal amount of the Mortgage Loan.
Future advances refer to additional funds that a lender has agreed to provide in the future under predefined terms within a lending agreement. This term is commonly found in the context of revolving credit facilities, mortgages, and other lending agreements, where the borrower may access further funds after the initial loan amount has been disbursed.
You should consider using future advances when you anticipate needing additional funds beyond the initial loan amount without having to undergo a new application process each time. This provides flexibility and usually accommodates situations where the borrower has ongoing funding needs, such as in construction projects, business expansions, or when dealing with adjustable lines of credit.
When writing about future advances in a contract or agreement, clearly specify:
Example:
“Borrower may access future advances of up to $50,000, subject to the lender’s approval and compliance with the financial covenants outlined in Section 5. Advances are to be repaid in equal installments over the remaining term of the loan at an interest rate of 5% per annum.”
Future advances are typically found in:
Including clear clauses related to future advances ensures all parties understand the terms and conditions under which additional funds may be accessed, providing valuable flexibility and financial management options.
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
A future consideration clause refers to an agreement within a contract where the parties commit to provide a benefit or fulfillment of obligations at a later date rather than immediately. This type of clause allows for flexibility and adaptation to evolving circumstances or additional negotiations as the contract progresses.
The "General Compliance with Laws" clause mandates that all parties to the contract adhere to applicable local, state, national, and international laws and regulations throughout the duration of their agreement. This clause ensures that all contractual activities are conducted legally and ethically, mitigating the risk of legal disputes and penalties.
A general indemnity clause is a contractual provision in which one party agrees to reimburse the other for any losses, damages, or liabilities incurred due to specified events or actions, regardless of fault. This clause is designed to allocate risk and protect the indemnified party from financial harm resulting from certain events or misconduct.
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