Optional Commitment Reduction Sample Clauses

The Optional Commitment Reduction clause allows a party, typically the borrower in a financing agreement, to voluntarily reduce the amount of unused credit or commitment available under the contract. In practice, this means the borrower can notify the lender to decrease the total amount they are entitled to borrow, often without penalty, and the reduction becomes effective after a specified notice period. This clause provides flexibility for the borrower to manage their financing needs and helps avoid unnecessary commitment fees on unused credit, ultimately ensuring efficient use of available credit and reducing costs.
Optional Commitment Reduction. Either Borrower may, upon at least two Business Days' notice to the Bank, terminate the Commitment at any time or reduce the amount of the Commitment from time to time during the period from the date hereof to and including the Termination Date, PROVIDED that each such reduction shall be in an amount equal to $100,000 or an integral multiple thereof, and the amount of the Commitment after any reduction shall be greater than or equal to the aggregate principal amount of all Loans then outstanding.
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Optional Commitment Reduction. The Borrower shall have the right, upon not less than three Business Days' notice to the Administrative Agent (which will promptly notify the Lenders thereof), to terminate the Total Commitment or, from time to time, to reduce the amount of the Total Commitment; provided that no such termination or reduction of the Total Commitment shall be permitted if, after giving effect thereto and to any prepayments of the Loans made on the effective date thereof, the Total Extensions of Credit then in effect would exceed the Total Commitment as reduced. Any such reduction shall be in a minimum amount of $10,000,000 or increments of $1,000,000 in excess thereof and shall reduce permanently the Total Commitment then in effect.
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Optional Commitment Reduction. The Borrower may, upon irrevocable written notice to the Notice Parties, terminate or permanently reduce the unused Commitments in each case without premium or penalty; provided that such reduction or termination shall be accompanied by the payment of any accrued Unused Commitment Fees; provided, further the Lender will cause a reduction of the commitment under the NOK Facility by an amount equal to the amount of such Commitment reduction hereunder.
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Optional Commitment Reduction. The Company may upon not less than five (5) Business Days’ prior notice to the Bank, permanently reduce the Commitment by an aggregate minimum amount of $5,000,000 or any multiple of $1,000,000 in excess thereof; provided that no such reduction shall be permitted if, after giving effect thereto, the then Outstanding Amount would exceed the amount of the Commitment then in effect and, provided further, that once reduced in accordance with this Section, the Commitment may not thereafter be increased.
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Optional Commitment Reduction. The Borrower may, upon notice to the Administrative Agent, terminate the Aggregate Commitments, or permanently reduce the Aggregate Commitments to an amount not less than the then Outstanding Amount of all Loans and L/C Obligations; provided that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. (New York Time), three Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $10,000,000 or any whole multiple of $1,000,000 in excess thereof, and (iii) the Borrower shall pay any amounts required by Section 3.05. The Administrative Agent shall promptly notify the Lenders of any such notice of reduction or termination of the Aggregate Commitments. Once reduced in accordance with this subsection, the Commitments may not be increased.
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Optional Commitment Reduction. The Borrower may, upon at least three business days' notice, terminate in whole or reduce ratably in part, the unused portion of the Revolving Facility; PROVIDED, HOWEVER, that each partial reduction shall be in amounts and integral multiples to be determined.
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Optional Commitment Reduction. Either Borrower may, upon at least two Business Days' notice to the Bank, terminate the Revolving B Commitment at any time or reduce the amount of the Revolving B Commitment from time to time during the period from the date hereof to and including the Termination Date, PROVIDED that each such reduction shall be in an amount equal to $100,000 or an integral multiple thereof, and the amount of the Revolving B Commitment after any reduction shall be greater than or equal to the sum of the aggregate principal amount of all Revolving B Loans then outstanding plus the L/C Outstandings.
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Optional Commitment Reduction. At the option of the Lessee, from time to time during the Commitment Period, exercisable by written notice to the Administrative Agent (the "Commitment Reduction Notice"), the Lessee may request the Administrative Agent to reduce the Aggregate Available Commitment and Aggregate Commitment Amount, and the Administrative Agent shall notify the Participants of such request and the Participants shall each reduce the unused portion of their respective Commitments, subject, in the case of clauses (iii) and (iv) below, to the reasonable satisfaction of Administrative Agent of the following provisions: (i) such notice from the Lessee shall specify the aggregate amount of such reduction for all Participants, which amount shall be either (x) $10,000,000 or an integral multiple of $1,000,000 in excess thereof, or (y) the remaining unfunded amount of the Available Commitments; (ii) such notice shall specify the effective date of such reduction, such effective date to be a Payment Date not earlier than fifteen (15) Business Days after the date of such notice or such earlier date as may be acceptable to the Administrative Agent; (iii) such notice shall specify if such notice is being given in connection with a purchase of Assets pursuant to Section 18.1(b) or (c) of the Lease; (iv) in such notice, Lessee shall certify to the Lessor, each Participant and Administrative Agent: (A) that, after giving effect to such reduction, the remaining Available Commitments will equal or exceed the Unfunded Future Payment Amounts as of the effective date of such reduction and after giving effect to the purchase of Assets, if any, pursuant to Sections 18.1(b) or (c) of the Lease, (B) that the remaining Contingency Reserves, after such reduction of the Commitments are sufficient for reasonably foreseeable contingencies which might occur during the remaining course of Construction and Acquisition of the Equipment, including Break Costs and Default Completion Costs, if any, which may be incurred based on events occurring on or prior to the date of reduction, (C) the anticipated date on which the Construction and Acquisition of the Equipment and Facilities will be completed, and (D) that Lessee has satisfied all conditions specified in Article XVIII of the Lease to the purchase, if any, of Assets pursuant to Section 18.1(b) or (c) of the Lease, and such certificate shall be accompanied by such information and documentation as Administrative Agent may reasonably request to demonstrate the ac...
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Related to Optional Commitment Reduction

  • Commitment Reduction The Borrower shall have the right, upon at least two Business Days’ notice to the Administrative Agent, to terminate in whole or, upon same day notice, from time to time to permanently reduce ratably in part the unused portion of the Commitments; provided that each partial reduction shall be in the aggregate amount of $5,000,000 or in an integral multiple of $1,000,000 in excess thereof; provided, further, that the Commitments may not be reduced to an amount that is less than the aggregate Stated Amount of outstanding Letters of Credit. Subject to the foregoing, any reduction of the Commitments to an amount below $100,000,000 shall also result in a reduction of the L/C Commitment Amount to the extent of such deficit (with automatic reductions in the amount of each L/C Fronting Bank Commitment ratably in proportion to the amount of such reduction of the L/C Commitment Amount). Each such notice of termination or reduction shall be irrevocable. Without limiting subsection (b) below, any Commitment reduced or terminated pursuant to this subsection (a) may not be reinstated.

  • Commitment Reductions Any reduction of the Revolving Loan Commitments required or permitted hereunder shall reduce the Revolving Loan Commitment of each Lender having a Revolving Loan Commitment on a pro rata basis based on the Commitment Ratio of such Lender for the Revolving Loan Commitment.

  • Voluntary Commitment Reductions (i) Borrower may, upon not less than three Business Days’ prior written or telephonic notice promptly confirmed by delivery of written notice thereof to Administrative Agent (which original written or telephonic notice Administrative Agent will promptly transmit by telefacsimile or telephone to each applicable Lender), at any time and from time to time terminate in whole or permanently reduce in part, without premium or penalty, the Revolving Commitments in an amount up to the amount by which the Revolving Commitments exceed the Total Utilization of Revolving Commitments at the time of such proposed termination or reduction; provided that any such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount. (ii) Borrower’s notice to Administrative Agent shall designate the date (which shall be a Business Day) of such termination or reduction and the amount of any partial reduction, and such termination or reduction of the Revolving Commitments shall be effective on the date specified in Borrower’s notice and shall reduce the Revolving Commitment of each Lender proportionately to its Pro Rata Share thereof; provided that a notice of termination or partial reduction may state that such notice is conditional upon the effectiveness of other credit facilities or the receipt of the proceeds from the issuance of other Indebtedness or upon the closing of an acquisition transaction, in which case such notice of termination or partial reduction may be revoked by Borrower (by notice to the Administrative Agent on or prior to the specified date) if such condition is not satisfied.

  • Application of Commitment Reductions; Payment of Fees The Administrative Agent will promptly notify the Appropriate Lenders of any termination or reduction of unused portions of the Letter of Credit Sublimit or the Swing Line Sublimit or the unused Commitments of any Class under this Section 2.06. Upon any reduction of unused Commitments of any Class, the Commitment of each Lender of such Class shall be reduced by such Lender’s Pro Rata Share of the amount by which such Commitments are reduced (other than the termination of the Commitment of any Lender as provided in Section 3.07). All commitment fees accrued until the effective date of any termination of the Aggregate Commitments shall be paid on the effective date of such termination.

  • Mandatory Prepayments and Commitment Reductions (a) If any Capital Stock shall be issued by the US Borrower (other than as set forth below with respect to Excluded Proceeds) or (ii) if any Indebtedness shall be incurred by any Group Member, excluding any Indebtedness incurred in accordance with Section 7.2 as in effect on the Closing Date (except Indebtedness incurred pursuant to Section 7.2(g)(i)(x)), then on the date of such issuance or incurrence, the Term Loans shall be prepaid, and/or the Revolving Credit Loans shall be repaid, by an amount equal to, in the case of an issuance of Capital Stock, 50% of the Net Cash Proceeds thereof, or in the case of Indebtedness, 100% of the Net Cash Proceeds, other than any Excluded Proceeds, of such issuance or incurrence, as set forth in Section 2.13(d). The provisions of this Section do not constitute a consent to the issuance of any equity securities by any entity whose equity securities are pledged pursuant to the Guarantee and US Collateral Agreement or the Canadian Collateral Agreement, or a consent to the incurrence of any Indebtedness by any Group Member. (b) If on any date any Group Member shall receive Net Cash Proceeds from any Asset Sale, Purchase Price Refund or Recovery Event then, except as provided in the following sentence, unless a Reinvestment Notice shall be delivered in respect thereof, on the date of receipt by such Group Member of such Net Cash Proceeds, the Term Loans shall be prepaid, and/or the Revolving Credit Loans shall be repaid, by an amount equal to the amount of such Net Cash Proceeds, as set forth in Section 2.13(d); provided, that, notwithstanding the foregoing, (i) the aggregate Net Cash Proceeds of Asset Sales and Recovery Events that may be excluded from the foregoing requirement pursuant to one or more Reinvestment Notices and pending reinvestment at any given time shall not exceed $40,000,000 and (ii) on each Reinvestment Prepayment Date the Term Loans shall be prepaid, and/or the Revolving Credit Loans shall be repaid, by an amount equal to the Reinvestment Prepayment Amount with respect to the relevant Reinvestment Event, as set forth in Section 2.13(d). Notwithstanding the foregoing, Net Cash Proceeds received from dispositions permitted by Section 7.5(e) shall be applied on the date of receipt to repay outstanding Revolving Loans. The provisions of this Section do not constitute a consent to the consummation of any Disposition not permitted by Section 7.5. (c) If for any fiscal year of the US Borrower commencing with the fiscal year ending December 31, 2009 there shall be Excess Cash Flow, then, on the relevant Excess Cash Flow Application Date, the Term Loans shall be prepaid and/or the Revolving Credit Loans shall be repaid, by an amount equal to 50% of such Excess Cash Flow, as set forth in Section 2.13(d). Each such prepayment shall be made on a date (an “Excess Cash Flow Application Date”) no later than five days after the earlier of (i) the date on which the financial statements of the US Borrower referred to in Section 6.1(a), for the fiscal year with respect to which such prepayment is made, are required to be delivered to the Lenders and (ii) the date such financial statements are actually delivered. (d) Except as otherwise provided in clause (b) above with respect to Net Cash Proceeds received from dispositions permitted by Section 7.5(e), amounts to be applied in connection with prepayments and Commitment reductions made pursuant to this Section 2.13 shall be applied, first, to the prepayment of the Term Loans and, second, to the repayment of the Revolving Credit Loans, as provided in Section 2.19. Any repayment of Revolving Credit Loans pursuant to this Section 2.13 shall not result in a reduction of the Revolving Credit Commitments. (e) If at any time the Dollar Equivalent of the total aggregate amount of the Revolving US/CA Extensions of Credit exceeds the Total Revolving Credit US/CA Commitments, the Borrowers shall repay Revolving Credit US/CA Loans and/or Swing Line Loans to such extent; provided that if the aggregate principal amount of Revolving Credit US/CA Loans and Swing Line Loans is less than such excess (because L/C Obligations constitute a portion thereof), the Borrowers shall, to the extent of the balance of such excess, replace outstanding Letters of Credit and/or deposit an amount in a cash collateral account established with the Administrative Agent for the benefit of the Secured Parties on terms and conditions satisfactory to the Administrative Agent. If at any time the total aggregate amount of the Revolving CA Extensions of Credit exceeds the Total Revolving Credit CA Commitments, the Canadian Borrower shall repay Revolving Credit CA Loans and/or Swing Line Loans to such extent; provided that if the aggregate principal amount of Revolving Credit CA Loans and Swing Line Loans to the Canadian Borrower is less than such excess (because L/C Obligations of the Canadian Borrower constitute a portion thereof), the Canadian Borrower shall, to the extent of the balance of such excess, replace its outstanding Letters or Credit and/or deposit an amount in a cash collateral account established with the Canadian Agent for the benefit of the Secured Parties on terms and conditions satisfactory to the Canadian Agent. (f) If at any time the Dollar Equivalent of the aggregate amount of the Total Extensions of Credit exceeds the Total Revolving Credit Commitment, the Borrowers shall repay Revolving Credit Loans and/or Swing Line Loans to such extent; provided that if the aggregate principal amount of Revolving Credit Loans and Swing Line Loans is less than such excess (because L/C Obligations constitute a portion thereof), the Borrowers shall to the extent of the balance of such excess, replace outstanding Letters of Credit and/or deposit an amount in a cash collateral account established with the Administrative Agent for the benefit of the Secured Parties on terms and conditions satisfactory to the Administrative Agent.