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.
This is a fluid and rapidly changing situation and these resources are current only as of the date of publication. We recommend that you contact your local Quarles & Brady attorney regarding the most up-to-date information or with any other questions regarding this subject matter, or contact Anthony Marino: (414) 277-5365 / [email protected].