Florida 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: Understanding the Florida Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Introduction: The Florida Credit Agreement signed between Southwest Royalties, Inc. and Bank One Texas is a legally binding contract that outlines the terms and conditions under which Southwest Royalties can obtain credit facilities from Bank One. This detailed description aims to provide an overview of this agreement, highlighting its key features, significance, and potential variations. Key Terms and Features: 1. Credit Line: The Florida Credit Agreement defines the maximum credit line that Bank One Texas is willing to extend to Southwest Royalties. The credit line acts as the upper limit of funds available for borrowing. 2. Interest Rates: The agreement outlines the interest rates applicable to any borrowed funds, specifying whether they are fixed or variable. Fixed rates remain constant throughout the agreement, while variable rates may fluctuate based on market conditions. 3. Repayment Terms: The agreement defines the repayment terms, including the repayment period, frequency of payments, and any prepayment penalties that may apply. It also clarifies the consequences of defaulting on payments. 4. Collateral: Southwest Royalties may be required to provide collateral to secure the credit line, such as property, assets, or accounts receivable. These assets act as security for Bank One Texas in the event of default. 5. Financial Covenants: The agreement may include financial covenants that Southwest Royalties must adhere to. These covenants typically relate to financial ratios (e.g., debt-to-equity ratio), liquidity requirements, or other financial performance indicators. 6. Reporting Requirements: To ensure transparency, the agreement may specify the reporting obligations that Southwest Royalties must meet, including providing regular financial statements, tax returns, or any other relevant documentation. Types of Florida Credit Agreements: While the focus is on the Florida Credit Agreement between Southwest Royalties, Inc. and Bank One Texas, it is essential to note that variations of this agreement can exist. These may include: 1. Secured Credit Agreement: This type requires Southwest Royalties to provide collateral as security. 2. Revolving Credit Agreement: It allows Southwest Royalties to borrow, repay, and re-borrow funds within the specified credit limit, usually over a longer-term period. 3. Term Loan Credit Agreement: Unlike revolving credit, this type provides a lump sum loan that Southwest Royalties must repay within a fixed term, usually with specific installment payments. 4. Construction Loan Credit Agreement: This agreement is specific to financing construction-related projects, establishing conditions for disbursement and repayment tied to construction progress. By carefully defining the terms and conditions, each type of Florida Credit Agreement offers flexibility and clarity for both parties involved, governing their financial relationship. Conclusion: The Florida Credit Agreement between Southwest Royalties, Inc. and Bank One Texas serves as a fundamental financial contract. It lays out the mutual expectations, rights, and obligations for both parties, ensuring a fair and transparent lending arrangement. Choosing the appropriate type of credit agreement depends on the financial needs and circumstances of Southwest Royalties, aligning the agreement's terms with their business objectives and plans.

Title: Understanding the Florida Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Introduction: The Florida Credit Agreement signed between Southwest Royalties, Inc. and Bank One Texas is a legally binding contract that outlines the terms and conditions under which Southwest Royalties can obtain credit facilities from Bank One. This detailed description aims to provide an overview of this agreement, highlighting its key features, significance, and potential variations. Key Terms and Features: 1. Credit Line: The Florida Credit Agreement defines the maximum credit line that Bank One Texas is willing to extend to Southwest Royalties. The credit line acts as the upper limit of funds available for borrowing. 2. Interest Rates: The agreement outlines the interest rates applicable to any borrowed funds, specifying whether they are fixed or variable. Fixed rates remain constant throughout the agreement, while variable rates may fluctuate based on market conditions. 3. Repayment Terms: The agreement defines the repayment terms, including the repayment period, frequency of payments, and any prepayment penalties that may apply. It also clarifies the consequences of defaulting on payments. 4. Collateral: Southwest Royalties may be required to provide collateral to secure the credit line, such as property, assets, or accounts receivable. These assets act as security for Bank One Texas in the event of default. 5. Financial Covenants: The agreement may include financial covenants that Southwest Royalties must adhere to. These covenants typically relate to financial ratios (e.g., debt-to-equity ratio), liquidity requirements, or other financial performance indicators. 6. Reporting Requirements: To ensure transparency, the agreement may specify the reporting obligations that Southwest Royalties must meet, including providing regular financial statements, tax returns, or any other relevant documentation. Types of Florida Credit Agreements: While the focus is on the Florida Credit Agreement between Southwest Royalties, Inc. and Bank One Texas, it is essential to note that variations of this agreement can exist. These may include: 1. Secured Credit Agreement: This type requires Southwest Royalties to provide collateral as security. 2. Revolving Credit Agreement: It allows Southwest Royalties to borrow, repay, and re-borrow funds within the specified credit limit, usually over a longer-term period. 3. Term Loan Credit Agreement: Unlike revolving credit, this type provides a lump sum loan that Southwest Royalties must repay within a fixed term, usually with specific installment payments. 4. Construction Loan Credit Agreement: This agreement is specific to financing construction-related projects, establishing conditions for disbursement and repayment tied to construction progress. By carefully defining the terms and conditions, each type of Florida Credit Agreement offers flexibility and clarity for both parties involved, governing their financial relationship. Conclusion: The Florida Credit Agreement between Southwest Royalties, Inc. and Bank One Texas serves as a fundamental financial contract. It lays out the mutual expectations, rights, and obligations for both parties, ensuring a fair and transparent lending arrangement. Choosing the appropriate type of credit agreement depends on the financial needs and circumstances of Southwest Royalties, aligning the agreement's terms with their business objectives and plans.