Tennessee 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 Tennessee Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: Tennessee Credit Agreement, Southwest Royalties, Inc., Bank One Texas, detailed description, types Introduction: The Tennessee Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a legally binding document that outlines the terms and conditions of borrowing credit extended to Southwest Royalties, Inc. by Bank One Texas. This agreement serves as a crucial tool in facilitating financial arrangements and ensuring a smooth business relationship between the two entities. In this article, we will provide a detailed description of this credit agreement, outlining its various types and key features. Types of Tennessee Credit Agreement: 1. Revolving Line of Credit Agreement: This type of Tennessee Credit Agreement offers Southwest Royalties, Inc. a predetermined maximum credit limit, which they can borrow from and repay as per their requirement. The company can access funds repeatedly, making it a flexible financing solution. Interest is charged only on the amount borrowed, providing Southwest Royalties, Inc. with greater control over their working capital. 2. Term Loan Credit Agreement: Under this type of agreement, Southwest Royalties, Inc. receives a lump sum loan with a fixed repayment schedule. The loan amount is disbursed upfront, allowing the company to make planned investments, expansion, or other business-related expenses. Interest is charged on the entire loan amount, and the agreement specifies the repayment term, including interest calculations, installments, and any applicable fees. Key Features of the Tennessee Credit Agreement: 1. Loan Purpose and Amount: The credit agreement specifies the purpose(s) for which the credit will be used, whether for general working capital, capital expenditures, debt refinancing, or other business-related needs. The agreement also states the maximum credit limit or loan amount available to Southwest Royalties, Inc. based on their financial profile and creditworthiness. 2. Interest Rates and Payment Terms: The agreement outlines the interest rate applicable to the borrowed funds, which may be fixed or variable based on prevailing market rates. It also details the payment terms, including the frequency (monthly, quarterly, or annually) and the methods for interest and principal repayment. The document may mention any potential penalties or fees associated with late or missed payments. 3. Collateral and Guarantees: To secure the credit facility, the agreement may require Southwest Royalties, Inc. to provide collateral, such as property, equipment, or receivables. Additionally, the agreement may include personal or corporate guarantees from the company's principals or shareholders, providing the bank with additional security in case of default. 4. Conditions and Financial Covenants: The credit agreement outlines the conditions precedent to borrowing, such as providing audited financial statements, maintaining certain financial ratios, and adhering to performance targets. It may also include affirmative and negative financial covenants, restricting specific actions that could impact Southwest Royalties, Inc.'s ability to repay the credit. Conclusion: The Tennessee Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is an essential document governing the borrowing relationship between the two entities. Offering various types of credit facilities, such as revolving lines of credit and term loans, this agreement provides Southwest Royalties, Inc. with financial flexibility and supports their business growth. Understanding the terms and features mentioned in the credit agreement is crucial for both parties to ensure a successful partnership and cooperative financial management.

Title: Understanding the Tennessee Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: Tennessee Credit Agreement, Southwest Royalties, Inc., Bank One Texas, detailed description, types Introduction: The Tennessee Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a legally binding document that outlines the terms and conditions of borrowing credit extended to Southwest Royalties, Inc. by Bank One Texas. This agreement serves as a crucial tool in facilitating financial arrangements and ensuring a smooth business relationship between the two entities. In this article, we will provide a detailed description of this credit agreement, outlining its various types and key features. Types of Tennessee Credit Agreement: 1. Revolving Line of Credit Agreement: This type of Tennessee Credit Agreement offers Southwest Royalties, Inc. a predetermined maximum credit limit, which they can borrow from and repay as per their requirement. The company can access funds repeatedly, making it a flexible financing solution. Interest is charged only on the amount borrowed, providing Southwest Royalties, Inc. with greater control over their working capital. 2. Term Loan Credit Agreement: Under this type of agreement, Southwest Royalties, Inc. receives a lump sum loan with a fixed repayment schedule. The loan amount is disbursed upfront, allowing the company to make planned investments, expansion, or other business-related expenses. Interest is charged on the entire loan amount, and the agreement specifies the repayment term, including interest calculations, installments, and any applicable fees. Key Features of the Tennessee Credit Agreement: 1. Loan Purpose and Amount: The credit agreement specifies the purpose(s) for which the credit will be used, whether for general working capital, capital expenditures, debt refinancing, or other business-related needs. The agreement also states the maximum credit limit or loan amount available to Southwest Royalties, Inc. based on their financial profile and creditworthiness. 2. Interest Rates and Payment Terms: The agreement outlines the interest rate applicable to the borrowed funds, which may be fixed or variable based on prevailing market rates. It also details the payment terms, including the frequency (monthly, quarterly, or annually) and the methods for interest and principal repayment. The document may mention any potential penalties or fees associated with late or missed payments. 3. Collateral and Guarantees: To secure the credit facility, the agreement may require Southwest Royalties, Inc. to provide collateral, such as property, equipment, or receivables. Additionally, the agreement may include personal or corporate guarantees from the company's principals or shareholders, providing the bank with additional security in case of default. 4. Conditions and Financial Covenants: The credit agreement outlines the conditions precedent to borrowing, such as providing audited financial statements, maintaining certain financial ratios, and adhering to performance targets. It may also include affirmative and negative financial covenants, restricting specific actions that could impact Southwest Royalties, Inc.'s ability to repay the credit. Conclusion: The Tennessee Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is an essential document governing the borrowing relationship between the two entities. Offering various types of credit facilities, such as revolving lines of credit and term loans, this agreement provides Southwest Royalties, Inc. with financial flexibility and supports their business growth. Understanding the terms and features mentioned in the credit agreement is crucial for both parties to ensure a successful partnership and cooperative financial management.