Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas

• Category: Corporations - Public - Credit
• State: Multi-State
• Control #: US-EG-9032
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. Title: Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas: A Comprehensive Overview Introduction: The Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a formal financial arrangement that governs the credit services provided by Bank One Texas to Southwest Royalties, Inc. This detailed description aims to shed light on various aspects of this agreement, including its types, key provisions, and the relationship between the parties involved. 1. Types of Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas: a) Revolving Line of Credit Agreement: This type of agreement allows Southwest Royalties, Inc. to borrow funds up to a predetermined credit limit as needed, thereby providing flexibility in managing their cash flow. b) Term Loan Agreement: Under this arrangement, Bank One Texas provides a specific loan amount to Southwest Royalties, Inc. for a given term, with fixed repayment schedules and interest rates. c) Secured Credit Agreement: In certain cases, Southwest Royalties, Inc. may provide collateral (such as accounts receivable or inventory) to secure the credit facility offered by Bank One Texas, ensuring lender protection against default. 2. Key Provisions and Terms: a) Credit Facility: The agreement outlines the maximum amount of credit available to Southwest Royalties, Inc. and establishes the conditions under which this credit can be accessed. b) Interest Rates: The agreement specifies the applicable interest rates for borrowing, ensuring clarity and predictability in managing interest expenses. c) Repayment Terms: The terms and conditions for repayment, including installment schedules, grace periods, and any applicable penalties for late payment or default, are defined in the agreement. d) Fee Structure: The agreement may include provisions detailing any fees associated with the credit facility, such as origination fees or annual maintenance charges. e) Events of Default: The agreement outlines the circumstances under which a default will be deemed to have occurred, enabling Bank One Texas to take appropriate actions to protect its interests. 3. Relationship between Southwest Royalties, Inc. and Bank One Texas: The Arkansas Credit Agreement establishes a legal relationship between Southwest Royalties, Inc. and Bank One Texas. Bank One Texas acts as the lender, providing credit services tailored to the specific needs of Southwest Royalties, Inc., an entity seeking financing for oil and gas-related activities in Arkansas. This agreement serves as a financial tool enabling Southwest Royalties, Inc. to access necessary funds while providing Bank One Texas with contractual assurances. Conclusion: The Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas plays a vital role in facilitating financial transactions and supporting the growth and operations of Southwest Royalties, Inc. Incorporated within this agreement are various types, provisions, and terms designed to outline the lending relationship and ensure the smooth functioning of borrowing activities. By understanding the details and intricacies of this agreement, both parties can enter into a business partnership built on trust, transparency, and financial stability.

Title: Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas: A Comprehensive Overview Introduction: The Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a formal financial arrangement that governs the credit services provided by Bank One Texas to Southwest Royalties, Inc. This detailed description aims to shed light on various aspects of this agreement, including its types, key provisions, and the relationship between the parties involved. 1. Types of Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas: a) Revolving Line of Credit Agreement: This type of agreement allows Southwest Royalties, Inc. to borrow funds up to a predetermined credit limit as needed, thereby providing flexibility in managing their cash flow. b) Term Loan Agreement: Under this arrangement, Bank One Texas provides a specific loan amount to Southwest Royalties, Inc. for a given term, with fixed repayment schedules and interest rates. c) Secured Credit Agreement: In certain cases, Southwest Royalties, Inc. may provide collateral (such as accounts receivable or inventory) to secure the credit facility offered by Bank One Texas, ensuring lender protection against default. 2. Key Provisions and Terms: a) Credit Facility: The agreement outlines the maximum amount of credit available to Southwest Royalties, Inc. and establishes the conditions under which this credit can be accessed. b) Interest Rates: The agreement specifies the applicable interest rates for borrowing, ensuring clarity and predictability in managing interest expenses. c) Repayment Terms: The terms and conditions for repayment, including installment schedules, grace periods, and any applicable penalties for late payment or default, are defined in the agreement. d) Fee Structure: The agreement may include provisions detailing any fees associated with the credit facility, such as origination fees or annual maintenance charges. e) Events of Default: The agreement outlines the circumstances under which a default will be deemed to have occurred, enabling Bank One Texas to take appropriate actions to protect its interests. 3. Relationship between Southwest Royalties, Inc. and Bank One Texas: The Arkansas Credit Agreement establishes a legal relationship between Southwest Royalties, Inc. and Bank One Texas. Bank One Texas acts as the lender, providing credit services tailored to the specific needs of Southwest Royalties, Inc., an entity seeking financing for oil and gas-related activities in Arkansas. This agreement serves as a financial tool enabling Southwest Royalties, Inc. to access necessary funds while providing Bank One Texas with contractual assurances. Conclusion: The Arkansas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas plays a vital role in facilitating financial transactions and supporting the growth and operations of Southwest Royalties, Inc. Incorporated within this agreement are various types, provisions, and terms designed to outline the lending relationship and ensure the smooth functioning of borrowing activities. By understanding the details and intricacies of this agreement, both parties can enter into a business partnership built on trust, transparency, and financial stability.