Reduction in Aggregate Commitment Clause Samples
The 'Reduction in Aggregate Commitment' clause defines the process by which the total amount of credit or funds available under a loan or credit facility can be decreased, either partially or fully, before the facility's maturity. Typically, this clause outlines the conditions under which a borrower may request a reduction, such as providing advance notice to the lender, and may specify minimum reduction amounts or frequency. Its core practical function is to give borrowers flexibility to adjust their borrowing needs and reduce unnecessary commitment fees, while also allowing lenders to manage their risk exposure more effectively.
Reduction in Aggregate Commitment. Borrower may from time to time during the term of this Facility upon prior written notice to Agent, elect to permanently reduce the amount of the Aggregate Commitment to an amount to be determined by Borrower; provided, however, that in no event shall Borrower be entitled to reduce the Aggregate Commitment below $15,000,000 pursuant to this Section. Each reduction notice from Borrower as described in the preceding sentence shall be accompanied by payment of any amounts (including any amounts payable by Borrower pursuant to Article III hereof) necessary to reduce the outstanding balance of the Advances to the amount specified in such notice. Each reduction of the Aggregate Commitment shall reduce each Lender's Commitment on a pro rata basis.
Reduction in Aggregate Commitment. The Borrower may permanently reduce the Aggregate Commitment in whole, or in part ratably among the Lenders in the minimum amount of $10,000,000 (and in multiples of $1,000,000 in excess thereof), upon at least five Business Days’ written notice to the Agent, which notice shall specify the amount of any such reduction, provided, however, that the amount of the Aggregate Commitment may not be reduced below the Aggregate Credit Exposure. All accrued Commitment Fees and LC Fees shall be payable on the effective date of any termination of the obligations of the Lenders to make Credit Extensions hereunder.
Reduction in Aggregate Commitment. Pursuant to the Company's notice pursuant to Section 2.05(a) of the Agreement, the Banks and the Agents hereby acknowledge that, effective as of date hereof, the Aggregate Commitment is reduced to $1,000,000,000, and such reduction is applied to each Bank's Commitment in accordance with its Pro Rata Share. The Company agrees to pay all accrued Facility Fees on the portion of the Aggregate Commitment so reduced on the date hereof.
Reduction in Aggregate Commitment. Borrower shall have the right to terminate or to permanently reduce the amount of the Aggregate Commitment at any time, or from time to time, upon notice given to Administrative Agent (which shall promptly notify the Lenders) not less than three (3) Business Days’ prior to the date of termination or reduction, which notice shall specify the effective date thereof and the amount of any such termination or reduction (which shall not be (y) less than $5,000,000 or any whole multiple of $1,000,000 in excess thereof and (z) more than an amount which would result in the Aggregate Commitment being less than the Effective Amount, after giving effect to any concurrent prepayment pursuant to Section 4.01). Any such notice given shall be irrevocable and effective only upon receipt by Administrative Agent. The Aggregate Commitment once terminated or reduced may not be reinstated or increased by Borrower, except pursuant to Section 2.03(a).
Reduction in Aggregate Commitment. The Borrower may permanently reduce the Aggregate Commitments of the Lenders in whole, or in part ratably among the Lenders in integral multiples of $1,000,000.00, upon at least five (5) Business Days’ prior written notice to the Administrative Agent by Borrower in the form of Exhibit C-2 (a “Payment Notice”), which notice shall specify the amount of any such reduction, provided, however, that the amount of the Aggregate Commitments of the Lenders may not be reduced below the aggregate principal amount of outstanding Loans. All accrued Commitment Fees shall be payable on the effective date of any termination of the obligations of the Lenders to make Credit Extensions hereunder.
Reduction in Aggregate Commitment. In addition, Borrowers shall have the right at any time during the forty-five (45) day period prior to the Term Maturity Date or the First Extended Maturity Date or the Second Extended Maturity Date, as applicable, to permanently reduce the Term Commitment by making any principal payment in the amount necessary to satisfy the conditions to extension set forth in Section 2.5(a)(iii) or Section 2.5(b)(iv) or Section 2.5(c)(iv) hereof, as applicable, by furnishing written notice to Administrative Agent of such election. In the event of any such election to reduce the Term Commitment, Administrative Agent shall so notify the Lenders and each Lender’s Pro Rata Share shall automatically be reduced by such Lender’s Commitment of the total reduction in the Term Commitment requested by Borrower. In lieu of making a principal payment, at Borrower’s option Borrower may deliver an unconditional irrevocable letter of credit in form and from an issuer reasonably satisfactory to Administrative Agent in an amount equal to the pay down required pursuant to the foregoing provision. Such letter of credit must be delivered on or before the then maturity date (prior to the applicable extension).