Virginia 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 Virginia Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Introduction: The Virginia Credit Agreement plays a vital role in governing the financial relationship between Southwest Royalties, Inc. and Bank One Texas. This detailed description aims to shed light on the various aspects of this agreement while incorporating relevant keywords like Virginia Credit Agreement, Southwest Royalties, Inc., Bank One Texas, and different types of agreements. 1. Definition and Purpose: The Virginia Credit Agreement is a legally binding document that outlines the terms and conditions for the extension of credit from Bank One Texas to Southwest Royalties, Inc., a prominent company operating in Virginia. The purpose of this agreement is to establish the guidelines for lending funds, determining interest rates, repayment schedules, and other essential clauses that govern the credit relationship. 2. Important Clauses: a. Loan Amount and Purpose: The Virginia Credit Agreement specifies the maximum loan amount that Southwest Royalties, Inc. can borrow from Bank One Texas. It also clearly defines the purpose for which the funds can be utilized, ensuring they are in compliance with the agreement's provisions. b. Interest Rates and Fees: This section outlines the interest rates applicable to the credit facility provided by Bank One Texas. It details whether the rates are fixed or variable and emphasizes any associated fees, including origination fees or penalties for late payments or defaults. c. Repayment Terms: The agreement lays out the structure and timeline for reimbursing the borrowed amount. It addresses the frequency of payments, minimum installment amounts, any preferences for early repayment, and potential consequences for defaulting on payments. d. Collateral and Security: To secure the credit, Southwest Royalties, Inc. may pledge certain assets as collateral, ensuring protection for Bank One Texas in case of non-payment. The agreement clearly outlines the types of acceptable collateral and defines the rights and obligations of both parties regarding its usage. e. Conditions and Covenants: This section encompasses specific conditions that Southwest Royalties, Inc. must meet to maintain the credit facility. It may include restrictions on incurring additional indebtedness, financial reporting obligations, or guidelines for maintaining a certain debt-to-equity ratio. 3. Different types of Virginia Credit Agreement: a. Revolving Credit Agreement: This type allows Southwest Royalties, Inc. to borrow, repay, and re-borrow funds within a specified credit limit. The agreement typically renews automatically, providing flexibility in managing short-term financing needs. b. Term Loan Agreement: Often associated with long-term investments or large-scale projects, the term loan agreement provides Southwest Royalties, Inc. with a sizeable lump sum paid upfront. They then repay the loan, along with interest, over the agreed-upon term, which can extend from several months to several years. c. Standby Credit Facility: A standby credit agreement acts as a backup or emergency source of funds for Southwest Royalties, Inc. in times of financial distress. It remains unused until a specific triggering event occurs, such as a sudden cash flow shortfall. Conclusion: The Virginia Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a crucial instrument that establishes the guidelines for credit provision, repayment, and other essential terms. By emphasizing keywords such as Virginia Credit Agreement, Southwest Royalties, Inc., Bank One Texas, and types of agreements, it is possible to showcase a comprehensive understanding of this financial relationship.

Title: Understanding the Virginia Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Introduction: The Virginia Credit Agreement plays a vital role in governing the financial relationship between Southwest Royalties, Inc. and Bank One Texas. This detailed description aims to shed light on the various aspects of this agreement while incorporating relevant keywords like Virginia Credit Agreement, Southwest Royalties, Inc., Bank One Texas, and different types of agreements. 1. Definition and Purpose: The Virginia Credit Agreement is a legally binding document that outlines the terms and conditions for the extension of credit from Bank One Texas to Southwest Royalties, Inc., a prominent company operating in Virginia. The purpose of this agreement is to establish the guidelines for lending funds, determining interest rates, repayment schedules, and other essential clauses that govern the credit relationship. 2. Important Clauses: a. Loan Amount and Purpose: The Virginia Credit Agreement specifies the maximum loan amount that Southwest Royalties, Inc. can borrow from Bank One Texas. It also clearly defines the purpose for which the funds can be utilized, ensuring they are in compliance with the agreement's provisions. b. Interest Rates and Fees: This section outlines the interest rates applicable to the credit facility provided by Bank One Texas. It details whether the rates are fixed or variable and emphasizes any associated fees, including origination fees or penalties for late payments or defaults. c. Repayment Terms: The agreement lays out the structure and timeline for reimbursing the borrowed amount. It addresses the frequency of payments, minimum installment amounts, any preferences for early repayment, and potential consequences for defaulting on payments. d. Collateral and Security: To secure the credit, Southwest Royalties, Inc. may pledge certain assets as collateral, ensuring protection for Bank One Texas in case of non-payment. The agreement clearly outlines the types of acceptable collateral and defines the rights and obligations of both parties regarding its usage. e. Conditions and Covenants: This section encompasses specific conditions that Southwest Royalties, Inc. must meet to maintain the credit facility. It may include restrictions on incurring additional indebtedness, financial reporting obligations, or guidelines for maintaining a certain debt-to-equity ratio. 3. Different types of Virginia Credit Agreement: a. Revolving Credit Agreement: This type allows Southwest Royalties, Inc. to borrow, repay, and re-borrow funds within a specified credit limit. The agreement typically renews automatically, providing flexibility in managing short-term financing needs. b. Term Loan Agreement: Often associated with long-term investments or large-scale projects, the term loan agreement provides Southwest Royalties, Inc. with a sizeable lump sum paid upfront. They then repay the loan, along with interest, over the agreed-upon term, which can extend from several months to several years. c. Standby Credit Facility: A standby credit agreement acts as a backup or emergency source of funds for Southwest Royalties, Inc. in times of financial distress. It remains unused until a specific triggering event occurs, such as a sudden cash flow shortfall. Conclusion: The Virginia Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a crucial instrument that establishes the guidelines for credit provision, repayment, and other essential terms. By emphasizing keywords such as Virginia Credit Agreement, Southwest Royalties, Inc., Bank One Texas, and types of agreements, it is possible to showcase a comprehensive understanding of this financial relationship.