PREPAYMENT AND REDUCTION Sample Clauses
The "Prepayment and Reduction" clause outlines the terms under which a borrower may pay off all or part of a loan before its scheduled maturity date and how such payments affect the outstanding loan balance. Typically, this clause specifies whether prepayments are allowed without penalty, if notice must be given, and how prepayments are applied (for example, toward principal or future installments). Its core function is to provide flexibility for the borrower to reduce debt early while ensuring the lender is informed and compensated appropriately, thereby managing the risk of unexpected changes to the loan's repayment schedule.
PREPAYMENT AND REDUCTION. Any advance may be prepaid in any amount at any time, and PHI may incrementally reduce or cancel the Revolving Line of Credit at any time without penalty upon giving Bank one day's notice.
PREPAYMENT AND REDUCTION. Section 2.09(b) of the Credit Agreement is amended:
(a) to replace the phrase "Term Loans (or, if Term Commitments are outstanding, the Term Commitments shall be reduced until the Term Commitments have been reduced to zero)" in each of clauses (i)(x)(2) and (ii) in such Section with the phrase "Loans in accordance with the clause (iv) below";
(b) to replace the reference to "Term Loans" in clause (i)(y) in such Section with a reference to "Loans in accordance with clause (iv) below"; and
(c) to replace paragraph (iv) in such Section with a new paragraph (iv) as follows:
PREPAYMENT AND REDUCTION. Section 2.09(b) of the Credit Agreement is amended to replace paragraph (iv) in such Section with a new paragraph (iv) as follows:
PREPAYMENT AND REDUCTION. Any Loan may be prepaid in any amount at any time, and PHI may incrementally reduce or cancel the Revolving Line of Credit at any time without premium or penalty upon giving Bank one day’s notice.
PREPAYMENT AND REDUCTION. (i) In addition, the Borrower shall prepay Term Loans and, solely in the case of clause (x) below, the Revolving Commitments shall be reduced as follows:
PREPAYMENT AND REDUCTION. (i) In addition, the Parent shall prepay or cause a Subsidiary Borrower to prepay Term Loans (or the Term Commitments shall be reduced) as follows: