Washington 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 Washington Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: Washington Credit Agreement, Southwest Royalties, Inc., Bank One Texas, detailed description, types Introduction: The Washington Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a significant financial arrangement that enables Southwest Royalties, Inc. to obtain credit facilities from Bank One Texas. This detailed description aims to shed light on the nature of this agreement, its purpose, key terms, and possible types or variations. 1. Overview of the Washington Credit Agreement: The Washington Credit Agreement serves as a legally binding contract between Southwest Royalties, Inc. and Bank One Texas, governing the terms under which credit will be provided. It outlines the rights and obligations of both parties to ensure smooth financing operations. 2. Purpose and Benefits: The primary purpose of the Washington Credit Agreement is to extend credit facilities to Southwest Royalties, Inc. This allows the company to secure funds for various purposes, such as expanding operations, funding capital expenditures, or managing ongoing business activities. It also provides Bank One Texas an opportunity to generate interest income while managing credit risk. 3. Key Terms and Conditions: The Washington Credit Agreement covers several essential terms and conditions that both Southwest Royalties, Inc. and Bank One Texas must adhere to. These may include: a) Credit Limit: The maximum amount of credit Southwest Royalties, Inc. can access under the agreement. b) Interest Rates: The interest rates applicable to the credit provided, which may be fixed or variable. c) Repayment Terms: Specifies the length of the loan period, installment amounts, and any relevant payment schedules. d) Collateral: Any assets pledged by Southwest Royalties, Inc. as security for the credit provided. e) Default Clause: Specifies the conditions under which a default by Southwest Royalties, Inc. could occur and the consequences that arise from such default. 4. Types of Washington Credit Agreement: While specific types of Washington Credit Agreements may vary based on the preferences and circumstances of the involved parties, some common variations might include: a) Term Credit Agreement: A fixed-term agreement where credit is extended for a specified duration, typically with regular repayments over the term. b) Revolving Credit Agreement: A more flexible agreement that allows Southwest Royalties, Inc. to access funds up to a predetermined limit. Repayments and borrowings can be made as needed, typically over a defined period. c) Standby Letter of Credit Agreement: A specialized credit agreement where Bank One Texas guarantees payment to third parties in case Southwest Royalties, Inc. fails to fulfill its obligations. Conclusion: The Washington Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a crucial financial arrangement that provides Southwest Royalties, Inc. with the necessary credit facilities to support ongoing operations and business growth. The agreement's terms and conditions, including credit limits, interest rates, and repayment terms, are designed to ensure a mutually beneficial relationship while managing risk. Different types of Washington Credit Agreements can be tailored to the specific needs and preferences of the parties involved, such as term agreements, revolving credit agreements, or standby letter of credit agreements.

Title: Understanding the Washington Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: Washington Credit Agreement, Southwest Royalties, Inc., Bank One Texas, detailed description, types Introduction: The Washington Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a significant financial arrangement that enables Southwest Royalties, Inc. to obtain credit facilities from Bank One Texas. This detailed description aims to shed light on the nature of this agreement, its purpose, key terms, and possible types or variations. 1. Overview of the Washington Credit Agreement: The Washington Credit Agreement serves as a legally binding contract between Southwest Royalties, Inc. and Bank One Texas, governing the terms under which credit will be provided. It outlines the rights and obligations of both parties to ensure smooth financing operations. 2. Purpose and Benefits: The primary purpose of the Washington Credit Agreement is to extend credit facilities to Southwest Royalties, Inc. This allows the company to secure funds for various purposes, such as expanding operations, funding capital expenditures, or managing ongoing business activities. It also provides Bank One Texas an opportunity to generate interest income while managing credit risk. 3. Key Terms and Conditions: The Washington Credit Agreement covers several essential terms and conditions that both Southwest Royalties, Inc. and Bank One Texas must adhere to. These may include: a) Credit Limit: The maximum amount of credit Southwest Royalties, Inc. can access under the agreement. b) Interest Rates: The interest rates applicable to the credit provided, which may be fixed or variable. c) Repayment Terms: Specifies the length of the loan period, installment amounts, and any relevant payment schedules. d) Collateral: Any assets pledged by Southwest Royalties, Inc. as security for the credit provided. e) Default Clause: Specifies the conditions under which a default by Southwest Royalties, Inc. could occur and the consequences that arise from such default. 4. Types of Washington Credit Agreement: While specific types of Washington Credit Agreements may vary based on the preferences and circumstances of the involved parties, some common variations might include: a) Term Credit Agreement: A fixed-term agreement where credit is extended for a specified duration, typically with regular repayments over the term. b) Revolving Credit Agreement: A more flexible agreement that allows Southwest Royalties, Inc. to access funds up to a predetermined limit. Repayments and borrowings can be made as needed, typically over a defined period. c) Standby Letter of Credit Agreement: A specialized credit agreement where Bank One Texas guarantees payment to third parties in case Southwest Royalties, Inc. fails to fulfill its obligations. Conclusion: The Washington Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a crucial financial arrangement that provides Southwest Royalties, Inc. with the necessary credit facilities to support ongoing operations and business growth. The agreement's terms and conditions, including credit limits, interest rates, and repayment terms, are designed to ensure a mutually beneficial relationship while managing risk. Different types of Washington Credit Agreements can be tailored to the specific needs and preferences of the parties involved, such as term agreements, revolving credit agreements, or standby letter of credit agreements.