Facility Reductions Clause Samples
The Facility Reductions clause defines the conditions and procedures under which the total amount or availability of a financial facility, such as a loan or credit line, can be decreased. Typically, this clause outlines the triggers for reduction, such as changes in the borrower's financial status, regulatory requirements, or at the lender's discretion, and specifies the notice period and method for implementing such reductions. Its core practical function is to provide a clear mechanism for adjusting the facility size, thereby managing risk for the lender and ensuring both parties understand how and when the facility may be reduced.
Facility Reductions. On the Effective Date, the committed amounts of the Covered Facilities shall be reduced and certain amounts reallocated as described in Schedule 7.1 (which Schedule will specify in detail the allocations to be made in respect of each Covered Facility). To the extent the aggregate outstanding credit extensions under any Covered Facility exceed the aggregate commitments thereunder (as so reduced), such credit extensions constituting loans shall be prepaid by depositing sufficient funds with the Administrative Agent in the Administrative Agent's Account on the Effective Date in the amount of such excess, and the Administrative Agent will distribute such funds to the Lender Parties not later than the next succeeding Business Day thereafter.
Facility Reductions. Borrower may, by not fewer than two Business Days prior notice to Agent, permanently reduce the amount of the Facility, and by a percentage corresponding to the percentage reduction of the Facility, each Commitment. In no event shall the Facility or the Commitment be reduced below the outstanding amount of the Loans, after giving effect to any voluntary prepayments.
Facility Reductions. The Commitment in respect of each Facility shall be reduced by the amount of each repayment required to be made or applied to the Relevant Facility under this Section 3.7 and under Section 3.8 at the time when such repayment is required to be made or applied. At any time when there is no longer any Outstanding Amount under the Term Facilities, the Commitments in respect of the Canadian Revolving Facility and the U.S. Revolving Facility shall be reduced on a pro rata basis (and to the extent necessary as a result of such reduction repayments shall be made on a pro rata basis in respect of such Facilities) by an amount equal to the amount of any repayment which would have been required to be made under this Section 3.7 or Section 3.8 if there had been an Outstanding Amount under the Term Facilities equal to the amount of such repayment.
Facility Reductions. 53 SECTION 7.2 Extension Fee........................................................................54
Facility Reductions. The Commitment in respect of each Facility shall be reduced by the amount of each repayment required to be made or applied to the Relevant Facility under this Section 3.7 and under Section 3.8 at the time when such repayment is required to be made or applied.