Monthly Commitment Reductions Sample Clauses
The Monthly Commitment Reductions clause allows for the adjustment of a party's minimum purchase or service obligations on a monthly basis. Typically, this clause outlines the process by which the committed amount can be reduced, such as by providing advance written notice or meeting certain conditions, and may specify limits on how much the commitment can decrease each month. Its core practical function is to provide flexibility for parties to adapt their contractual obligations in response to changing business needs, thereby reducing the risk of over-commitment and potential penalties.
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Monthly Commitment Reductions. Commencing on December 31, 2024, and occurring on the last day of each calendar month thereafter, the Revolver Commitment Amount shall be automatically reduced by $250,000.00 (the "MCR"). From time to time thereafter, the MCR will be subject to adjustment by the Bank in its discretion at each semi-annual Collateral Borrowing Base redetermination. To the extent the outstanding principal balance of the Revolver Note (including Letter of Credit Exposure) is in excess of the adjusted amount of the Revolver Commitment Amount, Borrowers shall make a mandatory principal prepayment on the Revolver Note in such amount as is necessary to reduce the outstanding principal balance of the Revolver Note (including Letter of Credit Exposure) to an amount less than or equal to the adjusted Revolver Commitment Amount, which such mandatory principal prepayment shall be made within five (5) days of the applicable MCR principal payment. Any such payments shall be in addition to the regularly scheduled interest payment.
Monthly Commitment Reductions. The Commitment shall be reduced as of the last day of each month commencing August 31, 2003, by an amount determined by the Lenders pursuant to Section 7 hereof (the "Monthly Commitment Reduction"). Subject to Lenders' right to redetermine the Monthly Commitment Reduction pursuant to Section 7 hereof, the Monthly Commitment Reduction on August -14- 31, 2003 and on the last day of each month thereafter, shall be in an amount equal to the amount of the Borrowing Base on the day immediately preceding the date of each such Monthly Commitment Reduction divided by the number of months then remaining prior to the Maturity Date. If as a result of any such Monthly Commitment Reduction, the Total Outstandings ever exceed the Commitment then in effect, Borrower shall make the mandatory prepayment of principal required pursuant to Section 9(b) hereof.
Monthly Commitment Reductions. During the Forbearance Period, the provisions of Section 2.8.2 of the Credit Agreement shall be suspended, and in lieu thereof the terms of this Section 2.7 shall apply. The Borrowing Base shall be automatically reduced as of each of the following dates in the amounts set forth opposite such dates: In addition, (i) if the Borrower satisfies its obligations under the third sentence of Section 2.5.2 of this Forbearance Agreement by payment of either the net proceeds of an Eagle Ford Oil and Gas Property sale or $1,000,000 to the Lender for application in accordance with Section 2.8, the Borrowing Base shall be automatically reduced on the date of such payment in an amount equal to the portion of such payment that is applied toward principal reduction of the Note, and (ii) if the Scheduled Maturity Date is extended to February 15, 2016 pursuant to Section 2.5.2 of this Forbearance Agreement, the Borrowing Base shall be automatically reduced as of February 1, 2016 in an amount equal to $150,000. The Borrower shall pay, on or before the date of each automatic Borrowing Base reduction pursuant to this Section 2.7, an amount sufficient to reduce the sum of the outstanding principal balance of the Note plus the Letter of Credit Exposure to an amount equal to or less than the Borrowing Base as so reduced.
Monthly Commitment Reductions. The Borrowing Base and the ----------------------------- Revolving Commitment shall be reduced as of the last day of each month (the "Monthly Commitment Reduction") during the period beginning May 31, 1999 and continuing thereafter until redetermined pursuant to Section 7(b) hereof by $0 per month. 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 Reductions. Section 2.12 of the Existing Loan Agreement shall be amended as follows:
Monthly Commitment Reductions. At the time of any Determination, Administrative Agent reserves the right to establish an equal Monthly Commitment Reduction. If a Borrowing Base Deficiency exists at any time solely because of a Monthly Commitment Reduction, Borrower shall promptly make a single lump sum payment in an amount at least equal to the Monthly Commitment Reduction to eliminate the Borrowing Base Deficiency. If a Borrowing Base Deficiency exists at any time because a new Determination of the Borrowing Base becomes effective (or due to a Borrowing Base Determination combined with a required Monthly Commitment Reduction), Borrower shall have the right to cure the Borrowing Base Deficiency as set forth in Section 2.7 above; provided, however, that if the Monthly Commitment Reduction was applicable before the Borrowing Base Determination, then the Monthly Commitment Reduction amount will be due in a lump sum and the Monthly Commitment Reduction will continue at the same amount or such other amount as determined by Administrative Agent.
Monthly Commitment Reductions. The Borrowing Base and the Commitment shall be reduced as of the first day of each month by an amount determined by the Lenders pursuant to Section 7(b) hereof (the “Monthly Commitment Reduction”). The Monthly Commitment Reduction shall be $0 until October 1, 2002, at which date the Monthly Commitment Reduction shall be $1,125,000 per month until redetermined pursuant to Section 7(b). 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.