Michigan Revolving Credit Loan and Security Agreement between Dixon Ticonderoga Co. and Dixon Ticonderoga, Inc.

• Category: Corporations - Public - Credit
• State: Multi-State
• Control #: US-EG-9009
• Format: Word; Rich Text

Description

3rd Mod. of Am./Rest. Revolving Credit Loan & Sec. Agr., Am. to Loan Docs./ Assign. btwn Dixon Ticonderga Co. & Dixon Ticonderga, Inc. dated Sep. 30, 1999. 17 pages Michigan Revolving Credit Loan and Security Agreement is a legal contract entered into between Dixon Ticonderoga Co. and Dixon Ticonderoga, Inc., two entities based in Michigan, to establish the terms and conditions of a revolving credit loan facility and to provide security for the loan. Under this agreement, Dixon Ticonderoga Co., as the lender, agrees to provide Dixon Ticonderoga, Inc., as the borrower, with a line of credit. This means that Dixon Ticonderoga, Inc. can borrow funds up to a specified limit, repay the borrowed amount, and then borrow again within the limit, as per its business needs. This type of loan provides flexibility and ongoing access to funds. The agreement contains various important provisions and clauses which outline the obligations and responsibilities of both parties. Some key elements typically covered in a Michigan Revolving Credit Loan and Security Agreement include: 1. Loan Amount and Repayment Terms: The agreement specifies the maximum loan amount available to Dixon Ticonderoga, Inc. and the duration of the loan facility. It also outlines the repayment terms, including the interest rate, installment schedule, and any penalties for late payments. 2. Security Interest: To secure the loan, Dixon Ticonderoga, Inc. provides collateral to Dixon Ticonderoga Co. This collateral could include assets such as accounts receivable, inventory, equipment, or any other valuable property. In case of default, Dixon Ticonderoga Co. can seize and sell these assets to recover the outstanding loan amount. 3. Conditions Precedent: The agreement may outline specific conditions that must be met by the borrower before accessing the credit facility, such as providing financial statements, maintaining certain ratios, or obtaining insurance coverage. 4. Events of Default: This section details the circumstances under which Dixon Ticonderoga Co. can declare a default, allowing them to terminate the loan and demand immediate repayment. Common events of default include non-payment, breach of covenants, bankruptcy, or material adverse changes in the borrower's financial condition. 5. Representations and Warranties: Both parties make various representations and warranties regarding their legal capacity, authority to enter into the agreement, absence of litigation, and accuracy of information provided. This ensures transparency and legal compliance. 6. Indemnification and Expenses: The agreement may include provisions for Dixon Ticonderoga, Inc. to indemnify Dixon Ticonderoga Co. against any losses, damages, or liabilities arising from the loan agreement. It may also specify which party is responsible for bearing certain fees and expenses related to the loan. It is important to note that while the general structure mentioned above is common, specific terms and provisions may vary between different Michigan Revolving Credit Loan and Security Agreements, depending on the circumstances and negotiations between the parties involved.

Michigan Revolving Credit Loan and Security Agreement is a legal contract entered into between Dixon Ticonderoga Co. and Dixon Ticonderoga, Inc., two entities based in Michigan, to establish the terms and conditions of a revolving credit loan facility and to provide security for the loan. Under this agreement, Dixon Ticonderoga Co., as the lender, agrees to provide Dixon Ticonderoga, Inc., as the borrower, with a line of credit. This means that Dixon Ticonderoga, Inc. can borrow funds up to a specified limit, repay the borrowed amount, and then borrow again within the limit, as per its business needs. This type of loan provides flexibility and ongoing access to funds. The agreement contains various important provisions and clauses which outline the obligations and responsibilities of both parties. Some key elements typically covered in a Michigan Revolving Credit Loan and Security Agreement include: 1. Loan Amount and Repayment Terms: The agreement specifies the maximum loan amount available to Dixon Ticonderoga, Inc. and the duration of the loan facility. It also outlines the repayment terms, including the interest rate, installment schedule, and any penalties for late payments. 2. Security Interest: To secure the loan, Dixon Ticonderoga, Inc. provides collateral to Dixon Ticonderoga Co. This collateral could include assets such as accounts receivable, inventory, equipment, or any other valuable property. In case of default, Dixon Ticonderoga Co. can seize and sell these assets to recover the outstanding loan amount. 3. Conditions Precedent: The agreement may outline specific conditions that must be met by the borrower before accessing the credit facility, such as providing financial statements, maintaining certain ratios, or obtaining insurance coverage. 4. Events of Default: This section details the circumstances under which Dixon Ticonderoga Co. can declare a default, allowing them to terminate the loan and demand immediate repayment. Common events of default include non-payment, breach of covenants, bankruptcy, or material adverse changes in the borrower's financial condition. 5. Representations and Warranties: Both parties make various representations and warranties regarding their legal capacity, authority to enter into the agreement, absence of litigation, and accuracy of information provided. This ensures transparency and legal compliance. 6. Indemnification and Expenses: The agreement may include provisions for Dixon Ticonderoga, Inc. to indemnify Dixon Ticonderoga Co. against any losses, damages, or liabilities arising from the loan agreement. It may also specify which party is responsible for bearing certain fees and expenses related to the loan. It is important to note that while the general structure mentioned above is common, specific terms and provisions may vary between different Michigan Revolving Credit Loan and Security Agreements, depending on the circumstances and negotiations between the parties involved.