Define: Drawing Power

How is Drawing Power defined in a legal contract?

• Drawing Power means the capacity of the borrower to withdraw funds periodically under each [facility] up to the [limit] but not exceeding the value of the [security interest] provided to the [bank] for such [facility], minus the corresponding [margin]. Seen in 7 SEC filings
• Drawing Power means the ability of the borrower to drawdown periodically under each of the facilities up to the [limit] but not exceeding the value of the current assets, if any, provided as security to the [bank] for such facilities less the corresponding [margin]. Seen in 3 SEC filings
• Drawing Power means the smallest amount out of (i) the sanctioned limit for that individual [facility], (ii) the value of the security provided for that individual facilities less margin. Seen in 3 SEC filings
• Drawing Power means the amount eligible for loan after reduction of [security margin] on the security shares and such margin may be set by the lender at its sole discretion, depending on the prevailing situation in the capital market. Seen in 2 SEC filings
• Drawing Power means the threshold limit(s) assessed by the lender, in its sole discretion periodically which shall be within the overall sanctioned limit and shall determine the amount. Seen in 2 SEC filings
• Drawing Power means the aggregate value arrived at by reducing the market value of each security after applying the [security margin] in respect of such security. Seen in 1 SEC filing

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of drawing power' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Use Cases For Definition 1

Drawing Power means the borrower's ability to periodically withdraw funds, not exceeding the value of the [security], less the [margin].

Relevant Contract Types

• Loan Agreement
• Credit Facility Agreement
• Futures and Options Contract

Relevant Circumstances

• Circumstances where a business or individual requires financial liquidity.
• Situations where the value of an asset fluctuates, thereby impacting the borrowing capacity.

Relevant Sectors

• Banking
• Financial Services
• Real Estate

Use Cases For Definition 2

Drawing Power means the predetermined threshold within the sanctioned limit, dictated by the lender's assessment.

Relevant Contract Types

• Banking Facility Agreement
• Commercial Loan Agreement

Relevant Circumstances

• Instances where lenders assess borrower’s repayment capacity and set the loan limit accordingly.
• Where creditworthiness and repayment capacity of a borrower are considered for sanctioning loans.

Relevant Sectors

• Banking
• Commercial Lending

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