Procedures for Voluntary Decrease Clause Samples
The Procedures for Voluntary Decrease clause outlines the steps a party must follow to reduce its obligations or commitments under an agreement, such as lowering the amount of a loan or reducing a service level. Typically, this clause specifies the required notice period, the form of notice, and any conditions or limitations on how and when a decrease can be made. Its core function is to provide a clear and orderly process for parties to adjust their commitments, thereby minimizing confusion and ensuring both sides are aware of and can plan for changes.
Procedures for Voluntary Decrease. On any Business Day, upon at least three (3) Business Day’s prior notice to each Series 2013-B Noteholder, each Conduit Investor, each Committed Note Purchaser and the Trustee, HVF II may decrease the Series 2013-B Principal Amount in whole or in part (each such reduction of the Series 2013-B Principal Amount pursuant to this Section 2.3(c), a “Voluntary Decrease”) by withdrawing from the Series 2013-B Principal Collection Account an amount up to the sum of all amounts then on deposit in such account and available for distribution to effect a Voluntary Decrease pursuant to Section 5.2, and distributing the amount of such withdrawal (such amount, the “Voluntary Decrease Amount”) to the Series 2013-B Noteholders as specified in Section 5.2. Each such notice shall set forth the date of such Voluntary Decrease, the related Voluntary Decrease Amount, whether HVF II is electing to pay any Terminated Purchaser in connection with such Voluntary Decrease, and the amount to be paid to such Terminated Purchaser (if any).