Michigan 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. Michigan Credit Agreement between Southwest Royalties, Inc. and Bank One Texas The Michigan Credit Agreement is an important legal contract that establishes a financial partnership between Southwest Royalties, Inc. and Bank One Texas. This agreement outlines the terms and conditions under which Bank One Texas provides credit facilities to Southwest Royalties, Inc., a company engaged in the exploration and production of natural resources in Michigan. The Michigan Credit Agreement is designed to meet the unique needs of Southwest Royalties, Inc. by providing financial flexibility and support for their ongoing operations in Michigan. It ensures that the company stays financially stable and has access to the necessary funds required for exploration, drilling, and production activities. Key terms and provisions of the Michigan Credit Agreement include: 1. Credit Facility: The agreement defines the credit facility granted by Bank One Texas to Southwest Royalties, Inc. This includes the maximum amount of credit available, which may vary depending on the specific needs and financial stability of the company. 2. Purpose: The agreement specifies that the credit facility is to be used exclusively for funding Southwest Royalties, Inc.'s operations in Michigan, including but not limited to exploration, drilling, equipment purchases, and related expenses. 3. Interest Rates: The Michigan Credit Agreement outlines the interest rates applicable to the credit facility. These rates may be variable or fixed, depending on the agreement between the parties and prevailing market conditions. 4. Repayment Terms: The agreement provides details on the repayment terms, including the duration of the credit facility and the repayment schedule. It may outline specific milestones or conditions that trigger repayment obligations. 5. Collateral: In order to secure the credit facility, Southwest Royalties, Inc. may be required to provide certain assets or properties as collateral. This ensures that Bank One Texas has recourse in case of default. The specific collateral requirements are defined in the agreement. 6. Covenants: The Michigan Credit Agreement may impose certain covenants on Southwest Royalties, Inc., which are financial and operational conditions that they must comply with throughout the duration of the agreement. These covenants may include maintaining a certain debt-to-equity ratio, achieving specified production targets, or providing regular financial statements to Bank One Texas. 7. Events of Default: The agreement outlines the circumstances that would constitute an event of default. This may include non-payment, violation of covenants, bankruptcy, or material misrepresentation by Southwest Royalties, Inc. in its dealings with Bank One Texas. Types of Michigan Credit Agreement between Southwest Royalties, Inc. and Bank One Texas: 1. Term Loan: A term loan agreement provides Southwest Royalties, Inc. with a fixed amount of credit for a specific term. This type of agreement is suitable for funding long-term projects or capital expenditures. 2. Revolving Credit Facility: A revolving credit facility offers Southwest Royalties, Inc. with a predetermined credit limit that can be used, repaid, and borrowed again as needed. It provides a flexible source of financing for short-term operational expenses. 3. Asset-Based Loan: An asset-based loan agreement allows Southwest Royalties, Inc. to borrow against their accounts receivable, inventory, or other eligible assets. This type of agreement provides more liquidity for the company based on the market value of its assets. In conclusion, the Michigan Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a crucial agreement that enables financial support for Southwest Royalties, Inc.'s operations in Michigan. This agreement provides a framework for managing credit facilities, interest rates, repayment terms, collateral requirements, financial covenants, and events of default. Different types of Michigan Credit Agreements include term loans, revolving credit facilities, and asset-based loans, depending on the specific financial needs of Southwest Royalties, Inc.

Michigan Credit Agreement between Southwest Royalties, Inc. and Bank One Texas The Michigan Credit Agreement is an important legal contract that establishes a financial partnership between Southwest Royalties, Inc. and Bank One Texas. This agreement outlines the terms and conditions under which Bank One Texas provides credit facilities to Southwest Royalties, Inc., a company engaged in the exploration and production of natural resources in Michigan. The Michigan Credit Agreement is designed to meet the unique needs of Southwest Royalties, Inc. by providing financial flexibility and support for their ongoing operations in Michigan. It ensures that the company stays financially stable and has access to the necessary funds required for exploration, drilling, and production activities. Key terms and provisions of the Michigan Credit Agreement include: 1. Credit Facility: The agreement defines the credit facility granted by Bank One Texas to Southwest Royalties, Inc. This includes the maximum amount of credit available, which may vary depending on the specific needs and financial stability of the company. 2. Purpose: The agreement specifies that the credit facility is to be used exclusively for funding Southwest Royalties, Inc.'s operations in Michigan, including but not limited to exploration, drilling, equipment purchases, and related expenses. 3. Interest Rates: The Michigan Credit Agreement outlines the interest rates applicable to the credit facility. These rates may be variable or fixed, depending on the agreement between the parties and prevailing market conditions. 4. Repayment Terms: The agreement provides details on the repayment terms, including the duration of the credit facility and the repayment schedule. It may outline specific milestones or conditions that trigger repayment obligations. 5. Collateral: In order to secure the credit facility, Southwest Royalties, Inc. may be required to provide certain assets or properties as collateral. This ensures that Bank One Texas has recourse in case of default. The specific collateral requirements are defined in the agreement. 6. Covenants: The Michigan Credit Agreement may impose certain covenants on Southwest Royalties, Inc., which are financial and operational conditions that they must comply with throughout the duration of the agreement. These covenants may include maintaining a certain debt-to-equity ratio, achieving specified production targets, or providing regular financial statements to Bank One Texas. 7. Events of Default: The agreement outlines the circumstances that would constitute an event of default. This may include non-payment, violation of covenants, bankruptcy, or material misrepresentation by Southwest Royalties, Inc. in its dealings with Bank One Texas. Types of Michigan Credit Agreement between Southwest Royalties, Inc. and Bank One Texas: 1. Term Loan: A term loan agreement provides Southwest Royalties, Inc. with a fixed amount of credit for a specific term. This type of agreement is suitable for funding long-term projects or capital expenditures. 2. Revolving Credit Facility: A revolving credit facility offers Southwest Royalties, Inc. with a predetermined credit limit that can be used, repaid, and borrowed again as needed. It provides a flexible source of financing for short-term operational expenses. 3. Asset-Based Loan: An asset-based loan agreement allows Southwest Royalties, Inc. to borrow against their accounts receivable, inventory, or other eligible assets. This type of agreement provides more liquidity for the company based on the market value of its assets. In conclusion, the Michigan Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a crucial agreement that enables financial support for Southwest Royalties, Inc.'s operations in Michigan. This agreement provides a framework for managing credit facilities, interest rates, repayment terms, collateral requirements, financial covenants, and events of default. Different types of Michigan Credit Agreements include term loans, revolving credit facilities, and asset-based loans, depending on the specific financial needs of Southwest Royalties, Inc.