Common use of Committed Amount Clause in Contracts

Committed Amount. If at any time, the sum of the aggregate principal amount of outstanding Loans plus LOC Obligations outstanding shall exceed the lesser of (I) the Committed Amount and (II) the Borrowing Base, the Borrower promises to prepay immediately the outstanding principal balance on the Loans and (after all Loans have been repaid) cash collateralize the LOC Obligations (in a manner satisfactory to the Agent) in an amount sufficient to eliminate such excess (to be applied as set forth in Section 3.3(c) below). Without limiting the foregoing, each Credit Party acknowledges and agrees that the Committed Amount will be automatically reduced on the dates and in the amounts set forth in Section 3.4(b), and that a mandatory prepayment will be required on each such date to the extent necessary to cause the sum of the aggregate principal amount of outstanding Loans plus LOC Obligations outstanding not to exceed the lesser of (I) the reduced Committed Amount as of such date and (II) the Borrowing Base.