Utah 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 Utah Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: Utah Credit Agreement, Southwest Royalties, Inc., Bank One Texas, detailed description, types of agreements Introduction: The Utah Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a legally binding document outlining the terms and conditions under which Bank One Texas provides credit to Southwest Royalties, Inc. This agreement serves as the cornerstone of the financial relationship between these two entities. Let's delve into the essential details of this agreement and explore any variations that may exist. 1. Overview of the Utah Credit Agreement: The Utah Credit Agreement is a financial contract between Southwest Royalties, Inc. and Bank One Texas, designed to regulate the extension of credit facilities to the former. It stipulates the rights, responsibilities, and obligations of both parties throughout the duration of the agreement. 2. Purpose and Scope: The primary objective of the Utah Credit Agreement is to provide Southwest Royalties, Inc. with necessary credit for various business needs. It could be used for funding acquisitions, working capital, expansion plans, exploration and production activities, debt refinancing, or other authorized purposes as specified in the agreement. 3. Key Terms and Conditions: a. Credit Limit: The agreement outlines the maximum credit limit that Bank One Texas extends to Southwest Royalties, Inc. This limit denotes the highest amount of credit that the company can utilize within a specified timeframe, subject to negotiation and adjustment based on the company's needs and creditworthiness. b. Interest Rates and Charges: The agreement defines the interest rates applicable to the credit facility, along with any associated charges. These rates may be fixed or variable, depending on the agreed terms. c. Repayment Terms: The agreement sets forth the repayment terms, including repayment schedule, interest payment frequency, grace periods, and any penalties or fees related to early or delayed repayment. d. Collateral and Guarantees: To secure the credit facility, Southwest Royalties, Inc. may be required to provide collateral, such as assets, land, or investments. Additionally, the agreement may stipulate personal or corporate guarantees to ensure repayment obligations are met. 4. Types of Utah Credit Agreements: While there may not be specific variations in the Utah Credit Agreement between Southwest Royalties, Inc. and Bank One Texas, there are different types or structures of credit agreements that can be customized based on the specific needs of both parties. These may include: — Revolving Line of Credit: Allows Southwest Royalties, Inc. to borrow up to the pre-approved limit as needed, and repay and redraw funds as necessary. — Term Loan Agreement: Provides a one-time lump sum credit disbursement to be repaid over a specified period and in agreed installments. Conclusion: The Utah Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a pivotal financial arrangement that facilitates credit provisions for Southwest Royalties' operational and growth requirements. By outlining the terms, conditions, and obligations clearly, this agreement fosters a mutually beneficial and transparent relationship between the two entities.

Title: Understanding the Utah Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: Utah Credit Agreement, Southwest Royalties, Inc., Bank One Texas, detailed description, types of agreements Introduction: The Utah Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a legally binding document outlining the terms and conditions under which Bank One Texas provides credit to Southwest Royalties, Inc. This agreement serves as the cornerstone of the financial relationship between these two entities. Let's delve into the essential details of this agreement and explore any variations that may exist. 1. Overview of the Utah Credit Agreement: The Utah Credit Agreement is a financial contract between Southwest Royalties, Inc. and Bank One Texas, designed to regulate the extension of credit facilities to the former. It stipulates the rights, responsibilities, and obligations of both parties throughout the duration of the agreement. 2. Purpose and Scope: The primary objective of the Utah Credit Agreement is to provide Southwest Royalties, Inc. with necessary credit for various business needs. It could be used for funding acquisitions, working capital, expansion plans, exploration and production activities, debt refinancing, or other authorized purposes as specified in the agreement. 3. Key Terms and Conditions: a. Credit Limit: The agreement outlines the maximum credit limit that Bank One Texas extends to Southwest Royalties, Inc. This limit denotes the highest amount of credit that the company can utilize within a specified timeframe, subject to negotiation and adjustment based on the company's needs and creditworthiness. b. Interest Rates and Charges: The agreement defines the interest rates applicable to the credit facility, along with any associated charges. These rates may be fixed or variable, depending on the agreed terms. c. Repayment Terms: The agreement sets forth the repayment terms, including repayment schedule, interest payment frequency, grace periods, and any penalties or fees related to early or delayed repayment. d. Collateral and Guarantees: To secure the credit facility, Southwest Royalties, Inc. may be required to provide collateral, such as assets, land, or investments. Additionally, the agreement may stipulate personal or corporate guarantees to ensure repayment obligations are met. 4. Types of Utah Credit Agreements: While there may not be specific variations in the Utah Credit Agreement between Southwest Royalties, Inc. and Bank One Texas, there are different types or structures of credit agreements that can be customized based on the specific needs of both parties. These may include: — Revolving Line of Credit: Allows Southwest Royalties, Inc. to borrow up to the pre-approved limit as needed, and repay and redraw funds as necessary. — Term Loan Agreement: Provides a one-time lump sum credit disbursement to be repaid over a specified period and in agreed installments. Conclusion: The Utah Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a pivotal financial arrangement that facilitates credit provisions for Southwest Royalties' operational and growth requirements. By outlining the terms, conditions, and obligations clearly, this agreement fosters a mutually beneficial and transparent relationship between the two entities.