Under what condition can an emergency advance be made under a line of credit?

An emergency advance under a line of credit can be made when there is an imminent loss unless the advance is made. This condition emphasizes the urgency and necessity of providing financial assistance to the borrower to prevent significant loss or damage. The key aspect is that the situation must be critical enough that delaying the advance would lead to adverse consequences, such as financial ruin or the inability to maintain essential operations.

This provision is designed to ensure that the lender can respond swiftly in situations where time-sensitive decisions are required to mitigate losses, reflecting the lender's role in supporting farmers in crisis situations. The focus here is on the urgency and potential risk to the borrower, making it clear that the advance is not just a matter of convenience, but rather a necessary measure to avoid imminent financial hardship.