Additional Advance Agreement

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• In the mortgage, there is a contractual obligation to make further advances. Therefore, if an initial facility agreement allows for the renewal of the facility, be sure to set the amount of the renewal fee and other renewal conditions to avoid possible disputes by subsequent royalty holders over priority. A future advance can be a consideration for a large number of credit products. In general, the concept of revolving credit lines is based on the expectation of funds available for term advances. Future advance clauses can also be incorporated into non-revolving loans, allowing borrowers to separate funds that have been authorized to them in order to reduce interest costs and manage cash flows. The Court decided that an extension was not a new replacement advance (i.e. .

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