Clean Down Period Sample Clauses
A Clean Down Period clause requires a borrower to reduce their outstanding loan balance to a specified lower level, or even to zero, for a defined minimum period within a set timeframe, such as annually. In practice, this means that if a company has a revolving credit facility, it must fully repay or significantly reduce the amount borrowed for a certain number of consecutive days each year. The core function of this clause is to ensure that the borrower is not using the facility as permanent long-term debt, but rather as short-term working capital, thereby managing lender risk and encouraging prudent financial management.
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Clean Down Period. During each calendar year during the term of this Agreement, there shall be a period of fifteen (15) consecutive days (the “Clean Down Period”) during which (a) there are no Distribution Loans outstanding, and (b) no Distribution Loans will be made.
Clean Down Period. The Borrower will cause the aggregate outstanding principal balance of Distribution Loans to be zero for a period of at least fifteen (15) consecutive days during each twelve month period.
Clean Down Period. Fail to reduce the aggregate Outstanding Amount of all Loans to $2,000,000 or less for at least 30 consecutive days in any fiscal quarter of the Borrower.
Clean Down Period. Prior to the Revolver Maturity Date, there shall be a period of fifteen (15) consecutive days (the “Clean Down Period”) during which (a) there are no Distribution Loans outstanding, and (b) no Distribution Loans will be made.
Clean Down Period. During each fiscal year in which Distribution Loans are made, there shall be a period of fifteen (15) consecutive days (the "Clean Down Period") during which (a) there are no Distribution Loans outstanding, and (b) no Distribution Loans will be made. The Clean Down Period for a fiscal year may begin on any date that is after the first Distribution Loan is made in such fiscal year.
Clean Down Period. During each calendar year, there shall be a period of fifteen (15) consecutive days (the "CLEAN DOWN PERIOD") during which (a) there are no Loans outstanding under the Working Capital/Distribution Subfacility, and (b) no Loans will be made under the Working Capital/Distribution Subfacility.
Clean Down Period. During the Clean-down Period for each fiscal year of the Borrower, the aggregate unpaid principal amount of outstanding Revolving Loans and Supplemental Revolving Loans, plus outstanding Letters of Credit Usage (which are not cash collateralized in a manner satisfactory to the Administrative Agent) shall not exceed the Clean-down Amount.
Clean Down Period. The Borrower shall on the first day of the Clean Down Period, repay in full all Advances outstanding on such day. No borrowings may be made under Section 4, during the Clean Down Period.”
(g) Section 7.C of the Loan Agreement is deleted in its entirety.
(h) In Section 11 of the Loan Agreement, the words “Controlled Collateral Account” are hereby deleted and replaced with the words “Deposit Account.”
(i) Section 13 of the Loan Agreement, the words “Controlled Collateral Account” are hereby deleted and replaced with the words “Deposit Account.”.
(j) Section 16 of the Loan Agreement is deleted in its entirety and replaced with “Reserved.”
(k) A new Section 19.M is added to the Loan Agreement as follows:
Clean Down Period. The Borrower will cause the aggregate outstanding principal balance of the Revolver B Loans to be zero for a period of at least fifteen (15) consecutive days during each twelve month period.
Clean Down Period. The Borrower, for a period of thirty consecutive days during each Fiscal Year, will make a repayment of the aggregate outstanding principal amount of all Working Capital Loans, if any, in an amount sufficient so as to cause such aggregate outstanding principal amount not to exceed $10,000,000.