Nevada 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: Nevada Credit Agreement: A Comprehensive Overview of the Arrangement Between Southwest Royalties, Inc. and Bank One Texas Keywords: Nevada Credit Agreement, Southwest Royalties Inc., Bank One Texas, types, detailed description, financial arrangement, terms, conditions, contractual obligations Introduction: The Nevada Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a vital financial arrangement that facilitates various funding requirements for Southwest Royalties Inc. This comprehensive guide aims to provide a detailed description of the agreement, shedding light on its terms, conditions, and contractual obligations. Additionally, it will outline any potential variations or types of Nevada Credit Agreements that exist between the two entities. Overview of the Nevada Credit Agreement: The Nevada Credit Agreement represents a legally binding contract established between Southwest Royalties, Inc., a prominent exploration and production company operating in Nevada's energy sector, and Bank One Texas, a leading financial institution based in the state. This agreement outlines the terms and conditions under which Bank One Texas provides financial support and credit facilities to Southwest Royalties, Inc. for its operations, expansions, and working capital needs. Types of Nevada Credit Agreements: While there may be several variations of the Nevada Credit Agreement tailored to meet specific financing requirements, a few common types include: 1. Revolving Credit Agreement: A revolving credit agreement allows Southwest Royalties, Inc. to borrow funds up to a predetermined credit limit. The company has the flexibility to utilize these funds as needed, making repayments and redrawing as per the agreement's terms. 2. Term Loan Agreement: Under a term loan agreement, Bank One Texas provides Southwest Royalties, Inc. with a loan for a specified period. The loan is typically repaid in regular installments, which may include both principal and interest, over the loan's tenure. 3. Equipment Financing Agreement: An equipment financing agreement enables Southwest Royalties, Inc. to secure credit specifically for acquiring or leasing necessary equipment essential for its operations. This agreement often involves the equipment purchased or leased serving as collateral for the credit facility. Detailed Description of the Nevada Credit Agreement: The Nevada Credit Agreement encompasses several crucial aspects of the financial arrangement between Southwest Royalties, Inc. and Bank One Texas. These elements may include but are not limited to: 1. Loan Amount: The agreement specifies the maximum credit limit provided by Bank One Texas to Southwest Royalties, Inc. This ensures a predetermined amount of funds available for borrowing purposes. 2. Interest Rate: Details regarding the interest rate, whether fixed or variable, are outlined in the agreement. This ensures transparency and aids in understanding the financial obligations associated with borrowing. 3. Repayment Terms: The Nevada Credit Agreement typically defines the repayment schedule, installment frequency, and any additional requirements for repayment, such as prepayment penalties or late payment charges. 4. Purpose of Credit: The agreement should clearly state the purpose for which Southwest Royalties, Inc. may utilize the funds. This may include investment in exploration and production projects, facility expansions, working capital management, debt refinancing, or other specified purposes. 5. Reporting and Compliance: The agreement often contains provisions outlining reporting requirements, financial covenants, and compliance obligations that Southwest Royalties, Inc. must fulfill to remain in good standing with the credit arrangement. Conclusion: The Nevada Credit Agreement between Southwest Royalties, Inc. and Bank One Texas serves as a vital financial tool, providing flexibility and support to Southwest Royalties, Inc.'s operations and growth strategies. Understanding the different types of Nevada Credit Agreements, along with their detailed descriptions and specific terms, helps both parties establish a mutually beneficial and sustainable financial relationship.

Title: Nevada Credit Agreement: A Comprehensive Overview of the Arrangement Between Southwest Royalties, Inc. and Bank One Texas Keywords: Nevada Credit Agreement, Southwest Royalties Inc., Bank One Texas, types, detailed description, financial arrangement, terms, conditions, contractual obligations Introduction: The Nevada Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a vital financial arrangement that facilitates various funding requirements for Southwest Royalties Inc. This comprehensive guide aims to provide a detailed description of the agreement, shedding light on its terms, conditions, and contractual obligations. Additionally, it will outline any potential variations or types of Nevada Credit Agreements that exist between the two entities. Overview of the Nevada Credit Agreement: The Nevada Credit Agreement represents a legally binding contract established between Southwest Royalties, Inc., a prominent exploration and production company operating in Nevada's energy sector, and Bank One Texas, a leading financial institution based in the state. This agreement outlines the terms and conditions under which Bank One Texas provides financial support and credit facilities to Southwest Royalties, Inc. for its operations, expansions, and working capital needs. Types of Nevada Credit Agreements: While there may be several variations of the Nevada Credit Agreement tailored to meet specific financing requirements, a few common types include: 1. Revolving Credit Agreement: A revolving credit agreement allows Southwest Royalties, Inc. to borrow funds up to a predetermined credit limit. The company has the flexibility to utilize these funds as needed, making repayments and redrawing as per the agreement's terms. 2. Term Loan Agreement: Under a term loan agreement, Bank One Texas provides Southwest Royalties, Inc. with a loan for a specified period. The loan is typically repaid in regular installments, which may include both principal and interest, over the loan's tenure. 3. Equipment Financing Agreement: An equipment financing agreement enables Southwest Royalties, Inc. to secure credit specifically for acquiring or leasing necessary equipment essential for its operations. This agreement often involves the equipment purchased or leased serving as collateral for the credit facility. Detailed Description of the Nevada Credit Agreement: The Nevada Credit Agreement encompasses several crucial aspects of the financial arrangement between Southwest Royalties, Inc. and Bank One Texas. These elements may include but are not limited to: 1. Loan Amount: The agreement specifies the maximum credit limit provided by Bank One Texas to Southwest Royalties, Inc. This ensures a predetermined amount of funds available for borrowing purposes. 2. Interest Rate: Details regarding the interest rate, whether fixed or variable, are outlined in the agreement. This ensures transparency and aids in understanding the financial obligations associated with borrowing. 3. Repayment Terms: The Nevada Credit Agreement typically defines the repayment schedule, installment frequency, and any additional requirements for repayment, such as prepayment penalties or late payment charges. 4. Purpose of Credit: The agreement should clearly state the purpose for which Southwest Royalties, Inc. may utilize the funds. This may include investment in exploration and production projects, facility expansions, working capital management, debt refinancing, or other specified purposes. 5. Reporting and Compliance: The agreement often contains provisions outlining reporting requirements, financial covenants, and compliance obligations that Southwest Royalties, Inc. must fulfill to remain in good standing with the credit arrangement. Conclusion: The Nevada Credit Agreement between Southwest Royalties, Inc. and Bank One Texas serves as a vital financial tool, providing flexibility and support to Southwest Royalties, Inc.'s operations and growth strategies. Understanding the different types of Nevada Credit Agreements, along with their detailed descriptions and specific terms, helps both parties establish a mutually beneficial and sustainable financial relationship.