Common use of Partial Reductions Clause in Contracts

Partial Reductions. If Transferor elects to reduce the Transferee's Total Investment in part, but not to zero: (A) Transferor shall give the Administrator, on Transferee's behalf, at least five (5) Business Days' prior written notice of such reduction (including the amount of such proposed reduction and the proposed date on which such reduction will commence), (B) the amount of any such reduction shall be in an amount of $1,000,000 or an integral multiple thereof, (C) on the proposed date of commencement of such reduction and on each day thereafter, Servicer shall refrain from reinvesting Collections pursuant to Section 1.03 until the amount thereof not so reinvested shall equal the desired amount of reduction, (D) Servicer shall hold such Collections in trust for Transferee, pending payment to the Administrator, as provided in Section 1.03, and (E) after giving effect to such reduction, Transferee's Total Investment will be at least equal to $25,000,000.