Los Angeles California Credit Agreement between Southwest Royalties, Inc. and Bank One Texas

• Category: Corporations - Public - Credit
• State: Multi-State
• County: Los Angeles
• Control #: US-EG-9032
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. A Los Angeles California Credit Agreement is a legal document that outlines the terms and conditions of a financial arrangement between Southwest Royalties, Inc. and Bank One Texas, which is based in Los Angeles, California. This agreement serves as a contract between the two parties, establishing the various obligations, rights, and responsibilities of each party regarding credit facilities provided by Bank One Texas to Southwest Royalties, Inc. The agreement specifies the principal amount of credit granted to Southwest Royalties, Inc., the interest rate applicable to the credit facility, and the repayment terms. It also outlines any collateral or security that Southwest Royalties, Inc. may need to provide to Bank One Texas to secure the credit, such as real estate assets, equipment, or inventory. Additionally, it may mention any financial covenants that Southwest Royalties, Inc. needs to adhere to, such as maintaining a certain debt-to-equity ratio or meeting specific financial performance targets. Furthermore, the Los Angeles California Credit Agreement may include provisions on events of default, outlining the conditions under which Southwest Royalties, Inc. would be considered in breach of the agreement. These may involve failure to make timely payments, violation of financial covenants, or other specified breaches. The agreement may specify the remedies available to Bank One Texas if a default occurs, potentially including acceleration of the loan, imposition of penalties or additional fees, or initiation of legal proceedings. Different types of Los Angeles California Credit Agreements between Southwest Royalties, Inc. and Bank One Texas may include: 1. Term Loan Agreement: This type of credit agreement establishes a fixed-term credit facility where Southwest Royalties, Inc. borrows a specific amount of money and repays it over a predefined period, typically with regular scheduled payments of principal and interest. 2. Revolving Credit Agreement: In this case, the credit facility granted by Bank One Texas to Southwest Royalties, Inc. is revolving, allowing Southwest Royalties, Inc. to borrow funds up to a certain limit and repay them as needed within the agreement's term. This revolving credit can be drawn and repaid multiple times. 3. Construction Loan Agreement: If Southwest Royalties, Inc. requires financing for construction purposes, a construction loan agreement can be established. This type of credit agreement typically has unique provisions tailored to the construction process, such as disbursement schedules linked to construction milestones or requirements for monitoring the progress and quality of the construction project. 4. Syndicated Loan Agreement: In some cases, Bank One Texas may choose to syndicate the credit facility, involving multiple lenders participating in providing credit to Southwest Royalties, Inc. Each lender enters into a separate credit agreement, but the terms and conditions are generally consistent. This type of agreement offers the advantage of pooling resources from various financial institutions to provide a larger credit facility. Overall, a Los Angeles California Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a crucial legal document that sets out the framework for the credit relationship between the two parties. It ensures that both parties understand their rights and obligations, providing a basis for a transparent and mutually beneficial financial arrangement.

A Los Angeles California Credit Agreement is a legal document that outlines the terms and conditions of a financial arrangement between Southwest Royalties, Inc. and Bank One Texas, which is based in Los Angeles, California. This agreement serves as a contract between the two parties, establishing the various obligations, rights, and responsibilities of each party regarding credit facilities provided by Bank One Texas to Southwest Royalties, Inc. The agreement specifies the principal amount of credit granted to Southwest Royalties, Inc., the interest rate applicable to the credit facility, and the repayment terms. It also outlines any collateral or security that Southwest Royalties, Inc. may need to provide to Bank One Texas to secure the credit, such as real estate assets, equipment, or inventory. Additionally, it may mention any financial covenants that Southwest Royalties, Inc. needs to adhere to, such as maintaining a certain debt-to-equity ratio or meeting specific financial performance targets. Furthermore, the Los Angeles California Credit Agreement may include provisions on events of default, outlining the conditions under which Southwest Royalties, Inc. would be considered in breach of the agreement. These may involve failure to make timely payments, violation of financial covenants, or other specified breaches. The agreement may specify the remedies available to Bank One Texas if a default occurs, potentially including acceleration of the loan, imposition of penalties or additional fees, or initiation of legal proceedings. Different types of Los Angeles California Credit Agreements between Southwest Royalties, Inc. and Bank One Texas may include: 1. Term Loan Agreement: This type of credit agreement establishes a fixed-term credit facility where Southwest Royalties, Inc. borrows a specific amount of money and repays it over a predefined period, typically with regular scheduled payments of principal and interest. 2. Revolving Credit Agreement: In this case, the credit facility granted by Bank One Texas to Southwest Royalties, Inc. is revolving, allowing Southwest Royalties, Inc. to borrow funds up to a certain limit and repay them as needed within the agreement's term. This revolving credit can be drawn and repaid multiple times. 3. Construction Loan Agreement: If Southwest Royalties, Inc. requires financing for construction purposes, a construction loan agreement can be established. This type of credit agreement typically has unique provisions tailored to the construction process, such as disbursement schedules linked to construction milestones or requirements for monitoring the progress and quality of the construction project. 4. Syndicated Loan Agreement: In some cases, Bank One Texas may choose to syndicate the credit facility, involving multiple lenders participating in providing credit to Southwest Royalties, Inc. Each lender enters into a separate credit agreement, but the terms and conditions are generally consistent. This type of agreement offers the advantage of pooling resources from various financial institutions to provide a larger credit facility. Overall, a Los Angeles California Credit Agreement between Southwest Royalties, Inc. and Bank One Texas is a crucial legal document that sets out the framework for the credit relationship between the two parties. It ensures that both parties understand their rights and obligations, providing a basis for a transparent and mutually beneficial financial arrangement.