Cash Management Mechanics - Future Funding
I am a bit confused on the mechanics of cash management where there is future funding available.
For example, say in month 22 of a loan term you go into cash management and the future funding window closes in month 24. However, the Lender can fund the remaining amount into an escrow account for the Borrower to draw upon later. 1) In month after 26 when the project leaves cash management, can Borrower just draw the remainder if it’sin the escrow? Assuming it passes the test… 2) For continued covenant tests while in cash management, do you just use the existing balance (not including escrow for future funding)? 3) Why would the lender approve of this?
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