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This is a fee payable annual in arrears. If the organization desires it can also charge a fee for the first year at the closing. Commercial lending uses a fee payable in arrears as it works better in the event the Note is a Demand Note to be clear that the fee does not mean that the organization has extended any commitment to continue the loan for an additional annual period. If this option is selected, the following language is added to the Note:

In addition to all other amounts due and payable respecting this Note, the Borrower promises to pay to the organization on each anniversary date of this Note, in arrears, a non-refundable annual facility fee equal to an amount.

This is a fee where the organization charges the Borrower a fee to reimburse the organization for the effort required to review the Borrower’s credit worthiness each year. There is an open-end text field available in Document Data providing the organization with substantial control over the text to appear in this paragraph. Upon selecting this option, the following language appears in the Note without a demand feature:

The Borrower shall pay to organization, on or before each anniversary date of this Note, a non-refundable credit review fee in an amount of [Annual Credit Review description]. The Borrower acknowledges and understands that (a) this Annual Credit Review Fee will be assessed each year, for as long as the credit facility evidenced by this Note remains open, regardless of whether any advances have been made hereunder or any principal balance is then outstanding, and (b) payment of the Annual Credit Review Fee does not entitle the Borrower to any assurances that such credit facility will remain open, nor does it alter or compromise the discretionary nature of this credit facility.