{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "close-of-business", "type": "clause", "offset": [7, 24]}, {"key": "termination-date", "type": "clause", "offset": [32, 48]}, {"key": "aggregate-commitments", "type": "definition", "offset": [54, 75]}, {"key": "pro-rata-basis", "type": "definition", "offset": [129, 143]}, {"key": "equal-to", "type": "definition", "offset": [158, 166]}, {"key": "prior-to", "type": "clause", "offset": [225, 233]}, {"key": "unpaid-principal-amount", "type": "definition", "offset": [287, 310]}, {"key": "the-committed-advances", "type": "clause", "offset": [314, 336]}], "snippet": "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.", 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"label": "Credit Agreement (La Quinta Inns Inc)", "score": 18.0, "published": true}, {"hash": "avQumv6vIbK", "uri": "/contracts/avQumv6vIbK#mandatory-reduction", "label": "Credit Agreement (La Quinta Inns Inc)", "score": 18.0, "published": true}], "size": 9, "hash": "aec5278b78e5c6d4a0772c023d825ecd", "id": 4}, {"snippet_links": [{"key": "at-any-time", "type": "clause", "offset": [3, 14]}, {"key": "excess-proceeds", "type": "definition", "offset": [26, 41]}, {"key": "prepayment-in-full", "type": "definition", "offset": [61, 79]}, {"key": "term-loans", "type": "definition", "offset": [83, 93]}, {"key": "pursuant-to-section", "type": "clause", "offset": [94, 113]}, {"key": "the-revolving-credit-commitment", "type": "clause", "offset": [122, 153]}, {"key": "date-of", "type": "clause", "offset": [190, 197]}, {"key": "required-prepayment", "type": "definition", "offset": [202, 221]}, {"key": "equal-to", "type": "definition", "offset": [256, 264]}], "snippet": "If at any time proceeds (\"Excess Proceeds\") remain after the prepayment in full of Term Loans pursuant to Section 4.4(b), the Revolving Credit Commitment shall be permanently reduced on the date of the required prepayment under Section 4.4(b) by an amount equal to the amount of such Excess Proceeds.", "samples": [{"hash": "j3CKYiscVtZ", "uri": "/contracts/j3CKYiscVtZ#mandatory-reduction", "label": "Credit Agreement (Jack in the Box Inc /New/)", "score": 18.0, "published": true}, {"hash": "aoZ6HmFq3em", "uri": "/contracts/aoZ6HmFq3em#mandatory-reduction", "label": "Credit Agreement (Jack in the Box Inc /New/)", "score": 18.0, "published": true}], "size": 9, "hash": "e84d613b35ce541432ccf17cdf675e0f", "id": 5}, {"snippet_links": [{"key": "revolving-commitment-maturity-date", "type": "definition", "offset": [7, 41]}, {"key": "the-revolving-credit-commitment", "type": "clause", "offset": [43, 74]}, {"key": "to-zero", "type": "definition", "offset": [102, 109]}], "snippet": "On the Revolving Commitment Maturity 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Commitment Maturity Date, the Revolving Credit Commitment shall automatically reduce to zero. In addition, the Revolving Credit Commitment shall be permanently reduced by the amount of any prepayment of Revolving Credit Advances pursuant to Sections 2.5(e) and (f) hereof.", "samples": [{"hash": "7MMkEahMaYu", "uri": "/contracts/7MMkEahMaYu#mandatory-reduction", "label": "Credit Agreement (Kevco Inc)", "score": 18.0, "published": true}], "size": 6, "hash": "785236fae0ed05caa2b90fbd305784d8", "id": 7}, {"snippet_links": [{"key": "the-commitments", "type": "clause", "offset": [0, 15]}, {"key": "on-the-maturity-date", "type": "clause", "offset": [42, 62]}], "snippet": "The Commitments hereunder shall terminate on the Maturity Date.", "samples": [{"hash": "eoKH6A9ppr3", "uri": "/contracts/eoKH6A9ppr3#mandatory-reduction", "label": "364 Day Credit Agreement (Dial Corp /New/)", "score": 18.0, "published": true}, {"hash": "4nbpasCeImd", "uri": "/contracts/4nbpasCeImd#mandatory-reduction", "label": "Credit Agreement (Dycom Industries Inc)", "score": 18.0, "published": true}, {"hash": "3XCrucd2aaf", "uri": "/contracts/3XCrucd2aaf#mandatory-reduction", "label": "364 Day Credit Agreement (Dial Corp /New/)", "score": 18.0, "published": true}], "size": 5, "hash": "0f6fbc34bb47289a9ad52b39c12ef5f0", "id": 8}, {"snippet_links": [{"key": "the-revolving-credit-commitment", "type": "clause", "offset": [0, 31]}, {"key": "date-of", "type": "clause", "offset": [68, 75]}, {"key": "required-prepayment", "type": "definition", "offset": [80, 99]}, {"key": "equal-to", "type": "definition", "offset": [139, 147]}, {"key": "excess-proceeds", "type": "definition", "offset": [167, 182]}, {"key": "to-the-extent", "type": "clause", "offset": [184, 197]}, {"key": "made-pursuant-to", "type": "clause", "offset": [229, 245]}], "snippet": "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).", "samples": [{"hash": "d5bNbsPnnLE", "uri": "/contracts/d5bNbsPnnLE#mandatory-reduction", "label": "Credit Agreement (Paravant Inc)", "score": 18.0, "published": true}, {"hash": "29D0aPRNu4Z", "uri": "/contracts/29D0aPRNu4Z#mandatory-reduction", "label": "Credit Agreement (Paravant Inc)", "score": 18.0, "published": true}, {"hash": "1MAYMoasxSm", "uri": "/contracts/1MAYMoasxSm#mandatory-reduction", "label": "Credit Agreement (DRS Technologies Inc)", "score": 18.0, "published": true}], "size": 5, "hash": "4efd1b78edc0cbe97a504d72dedf23a0", "id": 9}, {"snippet_links": [{"key": "unused-amount", "type": "definition", "offset": [4, 17]}, {"key": "the-commitment", "type": "definition", "offset": [21, 35]}, {"key": "to-zero", "type": "definition", "offset": [67, 74]}, {"key": "on-the-maturity-date", "type": "clause", "offset": [75, 95]}], "snippet": "The unused amount of the Commitment shall be automatically reduced to zero on the Maturity Date.", "samples": [{"hash": "hTjHa63MLgm", "uri": "/contracts/hTjHa63MLgm#mandatory-reduction", "label": "Credit Agreement (Next Level Communications Inc)", "score": 18.0, "published": true}], "size": 5, "hash": "d5480bee3b384e32c7d366fbcd394f0a", "id": 10}], "next_curs": "ClwSVmoVc35sYXdpbnNpZGVyY29udHJhY3RzcjgLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhxtYW5kYXRvcnktcmVkdWN0aW9uIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"parents": [["termination-and-reduction-of-commitments", "Termination and Reduction of Commitments"], ["reduction-of-the-commitments", "Reduction of the Commitments"], ["amounts-and-terms-of-the-advances", "AMOUNTS AND TERMS OF THE ADVANCES"], ["permanent-reduction-of-the-revolving-credit-commitment", "Permanent Reduction of the Revolving Credit Commitment"], ["revolving-credit-facility", "Revolving Credit Facility"]], "children": [["asset-dispositions", "Asset Dispositions"], ["", ""], ["debt-issuances", "Debt Issuances"], ["insurance-or-condemnation-events", "Insurance or Condemnation Events"], ["repayment-on-maturity-date", "Repayment on Maturity Date"]], "title": "Mandatory Reduction", "size": 291, "id": "mandatory-reduction", "related": [["mandatory-reductions", "Mandatory Reductions", "<strong>Mandatory Reductions</strong>"], ["mandatory-reduction-of-commitments", "Mandatory Reduction of Commitments", "<strong>Mandatory Reduction</strong> of Commitments"], ["voluntary-reduction", "Voluntary Reduction", "Voluntary Reduction"], ["voluntary-reductions", "Voluntary Reductions", "Voluntary Reductions"], ["mandatory-repayments", "Mandatory Repayments", "Mandatory Repayments"]], "related_snippets": [], "updated": "2026-02-20T05:50:57+00:00", "also_ask": [], "drafting_tip": null, "explanation": "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."}, "json": true, "cursor": ""}}