Houston Texas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas

• Category: Corporations - Public - Credit
• State: Multi-State
• City: Houston
• Control #: US-EG-9032
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. Title: Houston Texas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: Houston Texas, credit agreement, Southwest Royalties, Bank One Texas Introduction: The Houston Texas Credit Agreement serves as a legally binding contract between Southwest Royalties, Inc. and Bank One Texas, outlining the terms and conditions associated with credit facilities provided by the bank to the company. This detailed description provides an overview of the agreement while highlighting potential types of credit agreements that may exist. Types of Credit Agreements in Houston Texas between Southwest Royalties, Inc. and Bank One Texas: 1. Revolving Credit Agreement: A revolving credit agreement is a flexible financing option wherein Bank One Texas grants Southwest Royalties, Inc. a predetermined credit limit. This allows the company to borrow funds as needed within the approved limit, repay them, and borrow again throughout the term of the agreement. Interest is charged only on the outstanding balance. 2. Term Loan Agreement: Under a term loan agreement, Southwest Royalties, Inc. receives a specific sum of money from Bank One Texas, which is repaid over a fixed period with predetermined interest rates. This type of agreement is ideal for capital investments, acquisitions, or expansion projects undertaken by the company. 3. Standby Credit Facility: A standby credit facility provides Southwest Royalties, Inc. with access to funds in case of unforeseen financial circumstances or emergencies. Bank One Texas guarantees the availability of a predetermined amount to be drawn down only when needed, offering peace of mind to the company. 4. Asset-Based Loan Agreement: An asset-based loan agreement allows Southwest Royalties, Inc. to pledge its assets (e.g., accounts receivable, inventory, etc.) as collateral to secure credit from Bank One Texas. This type of agreement is often beneficial for companies with significant tangible assets but may have variable cash flows. Details of the Houston Texas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas: This agreement encompasses several crucial aspects, including but not limited to: 1. Loan Terms: The credit agreement specifies the duration, interest rates, and payment terms associated with any borrowed funds. It outlines the repayment schedule and any penalties or fees for late payments, ensuring clarity for both parties involved. 2. Collateral: If applicable, the credit agreement outlines the assets pledged as collateral to secure the credit facility provided by Bank One Texas. It defines the valuation methodology and monitoring mechanisms to protect the bank's interests. 3. Financial Covenants: To mitigate risks, credit agreements often include financial covenants that Southwest Royalties, Inc. must adhere to. These covenants define certain financial ratios or operational requirements that must be maintained throughout the term of the agreement. 4. Default and Remedies: The credit agreement establishes the conditions under which Southwest Royalties, Inc. would be considered in default and the subsequent remedies available to Bank One Texas. These may include acceleration of payment, penalties, or even legal action. Conclusion: The Houston Texas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas plays an essential role in shaping the financial relationship between the two entities. By outlining the various types of credit agreements that may exist, along with key components within these agreements, this description provides an overview of the intricate details involved in fostering a successful financial partnership.

Title: Houston Texas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas Keywords: Houston Texas, credit agreement, Southwest Royalties, Bank One Texas Introduction: The Houston Texas Credit Agreement serves as a legally binding contract between Southwest Royalties, Inc. and Bank One Texas, outlining the terms and conditions associated with credit facilities provided by the bank to the company. This detailed description provides an overview of the agreement while highlighting potential types of credit agreements that may exist. Types of Credit Agreements in Houston Texas between Southwest Royalties, Inc. and Bank One Texas: 1. Revolving Credit Agreement: A revolving credit agreement is a flexible financing option wherein Bank One Texas grants Southwest Royalties, Inc. a predetermined credit limit. This allows the company to borrow funds as needed within the approved limit, repay them, and borrow again throughout the term of the agreement. Interest is charged only on the outstanding balance. 2. Term Loan Agreement: Under a term loan agreement, Southwest Royalties, Inc. receives a specific sum of money from Bank One Texas, which is repaid over a fixed period with predetermined interest rates. This type of agreement is ideal for capital investments, acquisitions, or expansion projects undertaken by the company. 3. Standby Credit Facility: A standby credit facility provides Southwest Royalties, Inc. with access to funds in case of unforeseen financial circumstances or emergencies. Bank One Texas guarantees the availability of a predetermined amount to be drawn down only when needed, offering peace of mind to the company. 4. Asset-Based Loan Agreement: An asset-based loan agreement allows Southwest Royalties, Inc. to pledge its assets (e.g., accounts receivable, inventory, etc.) as collateral to secure credit from Bank One Texas. This type of agreement is often beneficial for companies with significant tangible assets but may have variable cash flows. Details of the Houston Texas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas: This agreement encompasses several crucial aspects, including but not limited to: 1. Loan Terms: The credit agreement specifies the duration, interest rates, and payment terms associated with any borrowed funds. It outlines the repayment schedule and any penalties or fees for late payments, ensuring clarity for both parties involved. 2. Collateral: If applicable, the credit agreement outlines the assets pledged as collateral to secure the credit facility provided by Bank One Texas. It defines the valuation methodology and monitoring mechanisms to protect the bank's interests. 3. Financial Covenants: To mitigate risks, credit agreements often include financial covenants that Southwest Royalties, Inc. must adhere to. These covenants define certain financial ratios or operational requirements that must be maintained throughout the term of the agreement. 4. Default and Remedies: The credit agreement establishes the conditions under which Southwest Royalties, Inc. would be considered in default and the subsequent remedies available to Bank One Texas. These may include acceleration of payment, penalties, or even legal action. Conclusion: The Houston Texas Credit Agreement between Southwest Royalties, Inc. and Bank One Texas plays an essential role in shaping the financial relationship between the two entities. By outlining the various types of credit agreements that may exist, along with key components within these agreements, this description provides an overview of the intricate details involved in fostering a successful financial partnership.