New Mexico 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: Exploring the New Mexico Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: New Mexico Credit Agreement, Southwest Royalties, Bank One Texas, detailed description, types Introduction: The New Mexico Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is an important financial arrangement that enables Southwest Royalties to access credit facilities provided by Bank One Texas. This detailed description will shed light on the agreement, its key components, and any potential variations or types that may exist within this agreement framework. Overview of the Agreement: The New Mexico Credit Agreement encapsulates the terms and conditions under which Southwest Royalties, a prominent New Mexico company involved in the oil and gas industry, can obtain credit from Bank One Texas. This agreement establishes a legally binding contract between the two parties, outlining the borrowing limits, interest rates, repayment terms, and any associated fees or penalties. Key Components: 1. Borrowing Limits: The credit agreement specifies the maximum credit amount that Southwest Royalties can borrow from Bank One Texas, which depends on the company's creditworthiness, financial stability, and collateral provided. 2. Interest Rates: The agreement stipulates the applicable interest rates for borrowed funds. These rates might be fixed or variable, depending on the financial market conditions or any specific agreement between the two parties. 3. Repayment Terms: The credit agreement outlines the repayment schedule, including the duration and frequency of payments. It may also cover any grace periods, early repayment options, and penalties for non-compliance with repayment obligations. 4. Collateral: In certain cases, the credit agreement may require Southwest Royalties to provide collateral to secure the borrowed funds. Collateral can include tangible assets such as property, equipment, or inventory. This collateral serves as a guarantee for Bank One Texas in case of default. 5. Covenants: The agreement may encompass various financial covenants, such as maintaining specific financial ratios, solvency levels, or restrictions on certain business activities. These covenants ensure that Southwest Royalties maintains a robust financial position throughout the credit facility term. Types of New Mexico Credit Agreements: While specific types of New Mexico Credit Agreements between Southwest Royalties, Inc. and Bank One Texas are not explicitly mentioned, it is important to note that credit agreements can vary based on the unique needs and circumstances of each borrower. Possible variations or types of credit agreements that may exist between Southwest Royalties and Bank One Texas include: 1. Revolving Credit Agreement: This type allows Southwest Royalties to borrow funds up to their approved credit limit for specific periods and repay, re-borrow, and repay again without requiring new agreements. 2. Term Loan Agreement: In this type, Southwest Royalties borrows a lump sum amount for a specific term, with regular fixed payments made over the agreed-upon schedule. 3. Secured Credit Agreement: If Southwest Royalties provides collateral to secure the borrowed funds, such an agreement is known as a secured credit agreement. The collateral may be liquidated to recover the outstanding debt in the event of default. Conclusion: The New Mexico Credit Agreement between Southwest Royalties, Inc. and Bank One Texas plays a crucial role in providing Southwest Royalties with essential financial resources to support their operations and growth. By understanding the key components and potential types of credit agreements, both parties can ensure a mutually beneficial financial relationship based on trust, transparency, and responsible lending practices.

Title: Exploring the New Mexico Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: New Mexico Credit Agreement, Southwest Royalties, Bank One Texas, detailed description, types Introduction: The New Mexico Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is an important financial arrangement that enables Southwest Royalties to access credit facilities provided by Bank One Texas. This detailed description will shed light on the agreement, its key components, and any potential variations or types that may exist within this agreement framework. Overview of the Agreement: The New Mexico Credit Agreement encapsulates the terms and conditions under which Southwest Royalties, a prominent New Mexico company involved in the oil and gas industry, can obtain credit from Bank One Texas. This agreement establishes a legally binding contract between the two parties, outlining the borrowing limits, interest rates, repayment terms, and any associated fees or penalties. Key Components: 1. Borrowing Limits: The credit agreement specifies the maximum credit amount that Southwest Royalties can borrow from Bank One Texas, which depends on the company's creditworthiness, financial stability, and collateral provided. 2. Interest Rates: The agreement stipulates the applicable interest rates for borrowed funds. These rates might be fixed or variable, depending on the financial market conditions or any specific agreement between the two parties. 3. Repayment Terms: The credit agreement outlines the repayment schedule, including the duration and frequency of payments. It may also cover any grace periods, early repayment options, and penalties for non-compliance with repayment obligations. 4. Collateral: In certain cases, the credit agreement may require Southwest Royalties to provide collateral to secure the borrowed funds. Collateral can include tangible assets such as property, equipment, or inventory. This collateral serves as a guarantee for Bank One Texas in case of default. 5. Covenants: The agreement may encompass various financial covenants, such as maintaining specific financial ratios, solvency levels, or restrictions on certain business activities. These covenants ensure that Southwest Royalties maintains a robust financial position throughout the credit facility term. Types of New Mexico Credit Agreements: While specific types of New Mexico Credit Agreements between Southwest Royalties, Inc. and Bank One Texas are not explicitly mentioned, it is important to note that credit agreements can vary based on the unique needs and circumstances of each borrower. Possible variations or types of credit agreements that may exist between Southwest Royalties and Bank One Texas include: 1. Revolving Credit Agreement: This type allows Southwest Royalties to borrow funds up to their approved credit limit for specific periods and repay, re-borrow, and repay again without requiring new agreements. 2. Term Loan Agreement: In this type, Southwest Royalties borrows a lump sum amount for a specific term, with regular fixed payments made over the agreed-upon schedule. 3. Secured Credit Agreement: If Southwest Royalties provides collateral to secure the borrowed funds, such an agreement is known as a secured credit agreement. The collateral may be liquidated to recover the outstanding debt in the event of default. Conclusion: The New Mexico Credit Agreement between Southwest Royalties, Inc. and Bank One Texas plays a crucial role in providing Southwest Royalties with essential financial resources to support their operations and growth. By understanding the key components and potential types of credit agreements, both parties can ensure a mutually beneficial financial relationship based on trust, transparency, and responsible lending practices.