Feb 7, 2018 09:46
6 yrs ago
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English term
Spain
Financial and legal expert translations
Native in: Spanish 
Works in: English to Spanish, German to Spanish, Italian to Spanish
Drawdown (in this particular context)
English
Bus/Financial
Law: Contract(s)
Term loan agreement
Dear colleagues,
I know what "Drawdown" means in the context of a loan agreement, it is the utilisation/gradual accessing of part or all of the credit facility, and we could say "a drawdown" is each occasion on which the borrower uses the loan facility. Also, I am aware that borrowers send Drawdown Notices (or "utilisation requests") to lenders to let them know they wish to use the facility
But in the following sentence, due to the wording I believe the author is referring to a particular document regarding or relating to drawdown. What do you think?
The sentence reads:
"For the purpose of assisting the Lenders in their decision, the Agent is entitled to ask for the services of the Technical Advisor, expenses to be borne by the Borrowers, provided they have been agreed in Drawdown."
So, if it has already been agreed "IN DRADOWN" that such advisor expenses shall be borne by Borrowers, isn't the text referring to a particular "document" relating to drawdown, probably signed by both parties? Could it actually be (a) Drawdown Notice, or perhaps a drawdown plan or...?
Many thanks for your help and suggestions!
I know what "Drawdown" means in the context of a loan agreement, it is the utilisation/gradual accessing of part or all of the credit facility, and we could say "a drawdown" is each occasion on which the borrower uses the loan facility. Also, I am aware that borrowers send Drawdown Notices (or "utilisation requests") to lenders to let them know they wish to use the facility
But in the following sentence, due to the wording I believe the author is referring to a particular document regarding or relating to drawdown. What do you think?
The sentence reads:
"For the purpose of assisting the Lenders in their decision, the Agent is entitled to ask for the services of the Technical Advisor, expenses to be borne by the Borrowers, provided they have been agreed in Drawdown."
So, if it has already been agreed "IN DRADOWN" that such advisor expenses shall be borne by Borrowers, isn't the text referring to a particular "document" relating to drawdown, probably signed by both parties? Could it actually be (a) Drawdown Notice, or perhaps a drawdown plan or...?
Many thanks for your help and suggestions!
Responses
2 hrs
Yvonne Gallagher
Ireland
Ireland
Native in English
&
English
Works in field
Ireland
right word, right place. everytime
Native in: English (Variants: US, Canadian, Irish, UK) 
Works in: French to English, Spanish to English, English, and 1 more.
Related KudoZ points
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58
English term (edited):
drawdown
Selected
(all the contractual documents related to) drawdown
I don't really see why you think it has to refer to a particular document other than the contract? Surely this wording refers to the drawdown contract itself (note the lack of an article), i.e. what may happen or take place during the whole procedure and period of drawdown?
... provided they have been agreed (already) in Drawdown=as long as it has been agreed they can take place during the drawdown procedure/period or as long as they have been agreed in all the (contractual) documents related to drawdown...
So, these expenses shall be borne by the borrowers, IF such has already been agreed in the drawdown contract.
But why is it THE technical adviser, surely it should be "A". Is there really only one technical adviser?
https://www.investopedia.com/ask/answers/041415/what-differe...
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Note added at 5 hrs (2018-02-07 15:16:43 GMT)
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I think you misunderstood. I didn't say it wasn't a document? Because it has NO article I believe it can't be referring to the actual drawdown itself. That would be written as: "in THE Drawdown " OR "at the time of THE Drawdown" (and would be referring to the Drawdown Notice being effected).
Your heading says "term loan agreement". I don't understand why you don't have all the clauses and appendices in front of you? I think you are over complicating this.
Is the Agent working for the borrowers or the lenders? The financing facility/bank should have their own technical/legal advisor. But I'm sure it's already defined in a clause. (BTW I've translated quite a few of these contracts...)
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Note added at 1 day 4 hrs (2018-02-08 14:00:59 GMT) Post-grading
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glad to have helped
... provided they have been agreed (already) in Drawdown=as long as it has been agreed they can take place during the drawdown procedure/period or as long as they have been agreed in all the (contractual) documents related to drawdown...
So, these expenses shall be borne by the borrowers, IF such has already been agreed in the drawdown contract.
But why is it THE technical adviser, surely it should be "A". Is there really only one technical adviser?
https://www.investopedia.com/ask/answers/041415/what-differe...
--------------------------------------------------
Note added at 5 hrs (2018-02-07 15:16:43 GMT)
--------------------------------------------------
I think you misunderstood. I didn't say it wasn't a document? Because it has NO article I believe it can't be referring to the actual drawdown itself. That would be written as: "in THE Drawdown " OR "at the time of THE Drawdown" (and would be referring to the Drawdown Notice being effected).
Your heading says "term loan agreement". I don't understand why you don't have all the clauses and appendices in front of you? I think you are over complicating this.
Is the Agent working for the borrowers or the lenders? The financing facility/bank should have their own technical/legal advisor. But I'm sure it's already defined in a clause. (BTW I've translated quite a few of these contracts...)
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Note added at 1 day 4 hrs (2018-02-08 14:00:59 GMT) Post-grading
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glad to have helped
Note from asker:
| I think it is a document (or documents) because of the English wording "agreed IN Drawdown". Also because within the framework of a term loan agreement, there can be a drawdown schedule, but also individual drawdown requests/applications/notices which are forms (documents) that are filled in by the Borrowers and sent to the Lenders each time they wish to draw down on the loan, even if such drawdown was not "scheduled". |
| It seems to me that there is one technical advisor (this is often a legal counselor). I do not have the rest of the Agreement available, but it may be assumed that such advisor has been previously defined. |
Peer comment(s):
| neutral |
philgoddard
: I'm not sure about this, and I can see why Rebeca asked. I don't think the meaning is clear.
2 hrs
|
3 KudoZ points awarded for this answer.
Comment: "Thank you again!"
12 hrs
the loan agreement
I think it indirectly refers to the loan agreement under which drawdowns are to be made.
See "conditions precedent" in the link below:
"If the loan is uncommitted then, even after signing the loan agreement, the lender can decide (in its absolute discretion) whether or not to lend the money to the borrower. If the loan is committed then, once the loan agreement has been signed by both parties, in theory the lender must lend the Principal to the borrower. However, in practice, the lender will usually protect itself by insisting that various conditions are inserted in the loan agreement and only once these conditions have been satisfied does it have to advance the Principal. The conditions are known as conditions precedent, as the lender will only advance the Principal once they have been satisfied."
https://legalvision.com.au/part-1-key-clauses-loan-agreement...
See "conditions precedent" in the link below:
"If the loan is uncommitted then, even after signing the loan agreement, the lender can decide (in its absolute discretion) whether or not to lend the money to the borrower. If the loan is committed then, once the loan agreement has been signed by both parties, in theory the lender must lend the Principal to the borrower. However, in practice, the lender will usually protect itself by insisting that various conditions are inserted in the loan agreement and only once these conditions have been satisfied does it have to advance the Principal. The conditions are known as conditions precedent, as the lender will only advance the Principal once they have been satisfied."
https://legalvision.com.au/part-1-key-clauses-loan-agreement...
Note from asker:
| Yes, I imagine "Drawdown" is a schedule or similar which is considered part of the binding agreement. However the "conditions precedent" (a concept I am familiar with) is another thing. Thank you for your suggestion :-) |
Discussion