Mandatory Reduction Sample Clauses
A Mandatory Reduction clause requires a party to reduce a specified amount, obligation, or exposure under certain conditions outlined in the agreement. Typically, this clause applies to financial arrangements, such as loan agreements, where the borrower must make early repayments if specific triggers occur, like asset sales or excess cash flow. Its core function is to protect the lender or counterparty by ensuring that outstanding amounts are reduced proactively, thereby managing risk and maintaining financial discipline.
Mandatory Reduction. At the close of business on the Termination Date, the aggregate Commitments shall be automatically and permanently reduced, on a pro rata basis, by an amount equal to the amount by which the aggregate Commitments immediately prior to giving effect to such reduction exceed the aggregate unpaid principal amount of the Committed Advances then outstanding.
Mandatory Reduction. The Commitments hereunder shall terminate on the Termination Date.
Mandatory Reduction. The Revolving Commitment, the LOC Commitment and the Swingline Commitment shall automatically terminate on the Maturity Date.
Mandatory Reduction. On the Maturity Date, the Commitment shall automatically reduce to zero.
Mandatory Reduction. If at any time excess proceeds remain after the prepayment of the Term Loan pursuant to Sections 4.4(b)(iii) and/or (iv), the Revolving Credit Commitment shall be permanently reduced on the date of the required prepayment under Sections 4.4(b)(iii) and/or (iv) by an amount equal to the amount of such excess proceeds.
Mandatory Reduction. Cash Collateralization of Letters of -------------------------------------------------------- Credit. ------
(a) If on any day (i) the LC Obligations exceed the combined - Commitments on such day or (ii) the LC Obligations exceed the Borrowing Base on -- such day, the Borrower shall immediately deposit, or cause MRDS to deposit, into the applicable Custody Account Eligible Investments or reduce the LC Obligations, or do a combination of the foregoing, in an amount sufficient to eliminate such excess. If, at any time, the sum of the Fair Market Value or Net Asset Value, as applicable, of each Alternative Investment carried in the applicable Custody Account exceeds the Fair Market Value of the Shares at the time pledged pursuant to the Pledge Agreement, then, to the extent, if any, that it is necessary for Alternative Investments having a Fair Market Value or Net Asset Value, as applicable, equal to such excess to be taken into account in order to support the Borrowing Base required at such time pursuant to this Agreement, the Borrower shall promptly pledge such additional number of Shares pursuant to the Pledge Agreement as shall be necessary to eliminate such excess.
(b) On the Final Maturity Date or, if earlier, the date the Obligations are accelerated pursuant to Section 7.2, and until the final ----------- expiration date of any Letter of Credit and thereafter so long as any Obligations are payable hereunder, the Borrower shall immediately cash collateralize such Letters of Credit with Cash and Cash Equivalents in an amount equal to 102% of the outstanding LC Obligations and such Collateral shall be placed in a special collateral account pursuant to arrangements satisfactory to the Administrative Agent (the "LC Collateral Account") at the Administrative --------------------- Agent's office in the name of the Borrower but under the sole dominion and control of the Administrative Agent, for the benefit of the Fronting Bank and the Lenders and the Borrower shall have no interest therein except as set forth in Section 7.
Mandatory Reduction. The Revolving Credit Commitment shall be permanently reduced by the amount of Revolving Credit Advances required to be prepaid pursuant to Section 2.5(b)(ii) hereof. On the Revolving Credit Commitment Maturity Date, the Revolving Credit Commitment shall be automatically reduced to zero.
Mandatory Reduction. The Revolving Credit Commitment shall be permanently reduced on the date of the required prepayment under Section 4.4(b)(vii) by an amount equal to the amount of such Excess Proceeds, to the extent a corresponding prepayment was made pursuant to 4.4(b)(iii).
Mandatory Reduction. The Commitments shall terminate automatically on the Revolving Maturity Date.
Mandatory Reduction. On the Revolving Commitment Maturity Date, the Revolving Credit Commitment shall automatically reduce to zero.