Monthly Commitment Reduction Clause Samples
The Monthly Commitment Reduction clause allows a party to decrease the minimum amount of goods, services, or payments they are contractually obligated to each month. Typically, this clause outlines the process for requesting a reduction, such as providing advance written notice or meeting certain conditions, and may specify limits on how much the commitment can be reduced or how often reductions can occur. Its core function is to provide flexibility for parties whose needs or capacities may change over time, helping to prevent over-commitment and reduce financial or operational risk.
Monthly Commitment Reduction. The Borrowing Base and the Revolving Commitment shall be reduced as of the first day of each month by an amount determined by the Banks pursuant to Section 7(b) hereof (the "Monthly Commitment Reduction"). The Monthly Commitment Reduction shall be $0 beginning on May 1, 1998, with like reductions continuing on the first day of each month thereafter until redetermined pursuant to Section 7(b) hereof. If as a result of any such Monthly Commitment Reduction, the Total Outstandings ever exceed the Revolving Commitment then in effect, the Borrower shall make the mandatory prepayment of principal required pursuant to Section 9(b) hereof.
Monthly Commitment Reduction. The Borrowing Base shall be reduced as of the last day of each month after the Effective Date by an amount determined by the Banks pursuant to Section 7(b) hereof (the "Monthly Commitment Reduction"). Beginning June 1, 2001, the Monthly Commitment Reduction shall be $0 per month until redetermined pursuant to Section 7(b) hereof.
Monthly Commitment Reduction. The Borrowing Base and the Commitment shall be reduced as of the first day of each month by $1,000,000 (the "Monthly Commitment Reduction") per month beginning on December 1, 1999 with like reductions continuing on the first day of each month thereafter through April 1, 2000. If as a result of any such Monthly Commitment Reduction, the Total Outstandings ever exceed the Commitment then in effect, the Borrower shall make the mandatory prepayment of principal required pursuant to Section 9(b) hereof.
Monthly Commitment Reduction. The Revolving Commitment shall be reduced as of the first day of each month beginning on the first day of the first month after the Closing Date by an amount determined by the Bank pursuant to Section 7(b) hereof (the "Monthly Commitment Reduction"). The Monthly Commitment Reduction shall be $0 per month until redetermined pursuant to Section 7(b) hereof. If, as a result of the Monthly Commitment Reduction required pursuant to this Section 2(f), the Total Outstandings ever exceed the Borrowing Base, Borrower shall within five (5) days of receipt of notice thereof, prepay, without penalty or premium, the principal amount of the Note in an amount at least equal to such excess plus interest thereon to the date of such prepayment.
Monthly Commitment Reduction. The term "Monthly Commitment ---------------------------- Reduction" is used herein, as defined in Section 2(g) hereof.
Monthly Commitment Reduction. The Revolving Commitment shall be ---------------------------- reduced as of the first day of each month beginning on the first day of the first month after the Effective Date by an amount determined by the Banks pursuant to Section 7(b) hereof (the "Monthly Commitment Reduction"). The Monthly Commitment Reduction shall be $240,000 on March 1, 1997, and thereafter, beginning April 1, 1997, $475,000.00 per month until redetermined pursuant to Section 7(b) hereof.
Monthly Commitment Reduction. The Borrowing Base and the ---------------------------- Revolving Commitment shall be reduced as of the first day of each month beginning February 1, 1998 by an amount determined by the Banks pursuant to Section 7(b) hereof (the "Monthly Commitment Reduction"). The Monthly Commitment Reduction shall be $2,000,000 beginning on February 1, 1998, with like reductions continuing on the first day of each month thereafter until redetermined pursuant to Section 7(b) hereof. If as a result of any such Monthly Commitment Reduction, the Total Outstandings ever exceed the Revolving Commitment then in effect, the Borrowers shall make the mandatory prepayment of principal required pursuant to Section 9(b) hereof.