Oklahoma 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 Oklahoma Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Introduction: In the oil and gas industry, companies often rely on credit agreements to finance their operations and achieve their business goals. One notable credit agreement is the Oklahoma Credit Agreement between Southwest Royalties, Inc. and Bank One Texas. This comprehensive agreement allows Southwest Royalties, Inc. to secure financing from Bank One Texas, assisting them in expanding their operations in the Oklahoma region. This article provides a detailed description of the agreement, highlighting its key components and potential types. Keywords: — Oklahoma CrediAgreementen— - Southwest Royalties, Inc. — Bank OnTextxa— - Oil and gas industry - Financing — Operation— - Expansion - Key components — Types 1. Overview of the Oklahoma Credit Agreement: The Oklahoma Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a legal and financial contract. It provides Southwest Royalties, Inc. with access to funds provided by Bank One Texas for use in their operations within the state of Oklahoma. The agreement defines the terms and conditions under which the funding is provided, outlining the obligations and responsibilities of both parties involved. 2. Key Components of the Agreement: a. Loan Amount and Purpose: The agreement states the loan amount extended by Bank One Texas to Southwest Royalties, Inc. for their operations in Oklahoma. It also clarifies that the funding is intended to finance specific aspects of Southwest Royalties, Inc.'s operations, like exploration, development, or acquisitions in the Oklahoma region. b. Interest Rates and Loan Repayment: The agreement outlines the interest rates applicable to the loan, which can be fixed or variable based on market conditions. It further outlines the repayment terms, including the duration of the loan and any grace periods or scheduled installments. c. Guarantees and Collateral: Bank One Texas may require Southwest Royalties, Inc. to provide guarantees or collateral to secure the loan. Guarantees may involve personal assets or additional corporate guarantees, while collateral could include oil and gas reserves or other valuable assets owned by Southwest Royalties, Inc. d. Events of Default and Remedies: The agreement will define certain events that, if triggered, could be considered as the borrower's default. These events may include failure to meet repayment obligations, violation of covenants, or insolvency. It also outlines the potential remedies available to Bank One Texas in such circumstances. e. Termination and Amendment: The agreement may specify conditions under which it can be terminated, such as advanced repayment or expiration of its term. Additionally, it may outline provisions to allow for amendments or modifications to the agreement as required by both parties. 3. Potential Types of Oklahoma Credit Agreements: a. Revolving Credit Agreement: This type of credit agreement provides a predetermined credit limit, enabling Southwest Royalties, Inc. to borrow and repay funds within the given limit as needed. Interest is typically charged only on the borrowed amount, making it a flexible financing option. b. Term Loan Agreement: A term loan agreement involves a specific loan amount provided to Southwest Royalties, Inc. for a fixed period. Repayment is usually structured through scheduled installments over the loan term, including interest payments, allowing for easier budgeting and planning. Conclusion: The Oklahoma Credit Agreement between Southwest Royalties, Inc. and Bank One Texas plays a crucial role in supporting Southwest Royalties, Inc.'s oil and gas operations in the Oklahoma region. By understanding the agreement's key components and potential types, both parties can establish a mutually beneficial financial arrangement. This cooperative effort ultimately contributes to the growth and success of the oil and gas industry in Oklahoma.

Title: Understanding the Oklahoma Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Introduction: In the oil and gas industry, companies often rely on credit agreements to finance their operations and achieve their business goals. One notable credit agreement is the Oklahoma Credit Agreement between Southwest Royalties, Inc. and Bank One Texas. This comprehensive agreement allows Southwest Royalties, Inc. to secure financing from Bank One Texas, assisting them in expanding their operations in the Oklahoma region. This article provides a detailed description of the agreement, highlighting its key components and potential types. Keywords: — Oklahoma CrediAgreementen— - Southwest Royalties, Inc. — Bank OnTextxa— - Oil and gas industry - Financing — Operation— - Expansion - Key components — Types 1. Overview of the Oklahoma Credit Agreement: The Oklahoma Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a legal and financial contract. It provides Southwest Royalties, Inc. with access to funds provided by Bank One Texas for use in their operations within the state of Oklahoma. The agreement defines the terms and conditions under which the funding is provided, outlining the obligations and responsibilities of both parties involved. 2. Key Components of the Agreement: a. Loan Amount and Purpose: The agreement states the loan amount extended by Bank One Texas to Southwest Royalties, Inc. for their operations in Oklahoma. It also clarifies that the funding is intended to finance specific aspects of Southwest Royalties, Inc.'s operations, like exploration, development, or acquisitions in the Oklahoma region. b. Interest Rates and Loan Repayment: The agreement outlines the interest rates applicable to the loan, which can be fixed or variable based on market conditions. It further outlines the repayment terms, including the duration of the loan and any grace periods or scheduled installments. c. Guarantees and Collateral: Bank One Texas may require Southwest Royalties, Inc. to provide guarantees or collateral to secure the loan. Guarantees may involve personal assets or additional corporate guarantees, while collateral could include oil and gas reserves or other valuable assets owned by Southwest Royalties, Inc. d. Events of Default and Remedies: The agreement will define certain events that, if triggered, could be considered as the borrower's default. These events may include failure to meet repayment obligations, violation of covenants, or insolvency. It also outlines the potential remedies available to Bank One Texas in such circumstances. e. Termination and Amendment: The agreement may specify conditions under which it can be terminated, such as advanced repayment or expiration of its term. Additionally, it may outline provisions to allow for amendments or modifications to the agreement as required by both parties. 3. Potential Types of Oklahoma Credit Agreements: a. Revolving Credit Agreement: This type of credit agreement provides a predetermined credit limit, enabling Southwest Royalties, Inc. to borrow and repay funds within the given limit as needed. Interest is typically charged only on the borrowed amount, making it a flexible financing option. b. Term Loan Agreement: A term loan agreement involves a specific loan amount provided to Southwest Royalties, Inc. for a fixed period. Repayment is usually structured through scheduled installments over the loan term, including interest payments, allowing for easier budgeting and planning. Conclusion: The Oklahoma Credit Agreement between Southwest Royalties, Inc. and Bank One Texas plays a crucial role in supporting Southwest Royalties, Inc.'s oil and gas operations in the Oklahoma region. By understanding the agreement's key components and potential types, both parties can establish a mutually beneficial financial arrangement. This cooperative effort ultimately contributes to the growth and success of the oil and gas industry in Oklahoma.