FAQ – Drawing on Line of Credit

Can I still draw on my line of credit?

Obviously the conditions to borrowing set forth in your loan agreement will control, but generally you will need to certify that no “default” or “unmatured default” has occurred and is existing and that all of your representations and warranties are true and correct on the borrowing date. Whether you can certify to these will require a careful reading of the loan agreement, but generally a future anticipated breach will not prevent a borrower from drawing on its line of credit.