Common use of Commitment Reduction Clause in Contracts

Commitment Reduction. Upon at least three (3)Business Days prior written notice to Bank, Borrower may permanently reduce the Commitment Amount, in whole or part provided that: (a) each partial reduction of the Commitment Amount shall be in an amount of One Million Dollars ($1,000,000) or a greater integral multiple thereof; and (b) the Borrower shall prepay the Loan in the amount, if any, by which the aggregate amount of Loan then outstanding would otherwise exceed the Commitment Amount as reduced, together with interest thereon to the date of prepayment.