Common use of Mandatory cancellation Clause in Contracts

Mandatory cancellation. If, prior to a Delivery: (a) the Building Contract is for any reason and by any method cancelled, terminated or rescinded; or (b) a competent court or arbitration panel decides that the Building Contract has been validly cancelled, terminated or rescinded; or (c) the Borrower disposes of its rights under the Building Contract (whether this be by way of assignment, novation or otherwise) or the Borrower wrongfully cancels, terminates or rescinds the Building Contract, then the Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrower with effect from the date ten Business Days after the giving of such notice (or such later date as may be approved in advance by the Majority Lenders) cancel the Total Commitments and the Total Commitments shall then be reduced to zero.