Cancellation and Reallocation Sample Clauses
The Cancellation and Reallocation clause defines the terms under which a party may cancel previously agreed-upon commitments and how those resources or obligations are reassigned. Typically, this clause outlines the process for notifying the other party of a cancellation, any applicable fees or penalties, and the method for reallocating the cancelled goods, services, or time slots to other parties or uses. Its core function is to provide a clear framework for managing changes in commitments, thereby minimizing disputes and ensuring efficient use of resources when cancellations occur.
Cancellation and Reallocation. If the Servicer and the Lender under the Credit and Security Agreement are the same entity, on purchase of the 20 - Exchange Note by the Servicer under Section 6.1(a), the Servicer may, on notice to the Borrowers, the Lender, the Collateral Agent and the Administrative Agent, direct that the 20 - Exchange Note be cancelled by the Lender and the Leases and related Leased Vehicles be reallocated to the Revolving Facility Pool by the Collateral Agent.