The LSTA's Complete Credit Agreement Guide, Second Edition, 2nd Edition

CHAPTER 5

Conditions Precedent

5.1 EFFECTIVENESS CONDITIONS

The conditions precedent in a credit agreement are, in essence, a simplified closing list, although given the tendency to detail in more recent credit agreements, they are often neither short nor simple. The conditions specify what documents the borrower must deliver to the lenders (or the administrative agent), what actions it must take, and what other circumstances must exist in order for credit to be available. Customarily, the conditions are broken out into two types: those to be satisfied at closing and those to be satisfied both at closing and at each borrowing or other extension of credit or other extension of credit thereafter (the latter are the so-called “ongoing conditions”). ...