Repayment and Reductions Clause Samples
The 'Repayment and Reductions' clause defines how and when a borrower must repay amounts owed under an agreement, as well as the circumstances under which those amounts may be reduced. This clause typically outlines the repayment schedule, acceptable methods of payment, and any provisions for early repayment or mandatory reductions, such as prepayments or reductions due to specific events. Its core function is to provide clear guidelines for the repayment process, ensuring both parties understand their obligations and reducing the risk of disputes over payment terms.
Repayment and Reductions. Repayment and roll-over of Revolving Facility Loans
Repayment and Reductions. 8.1 Repayment and roll-over of Revolving Facility Loans The Borrower shall repay each Revolving Facility Loan in full on the last day of its Interest Period, however so that where a Revolving Facility Loan (the “New Revolving Facility Loan”) is, subject to and in accordance with the other terms of this Agreement, to be made on a day which another Revolving Facility Loan (the “Maturing Revolving Facility Loan”) is due to be repaid, then:
(a) the Maturing Revolving Facility Loan shall be deemed to be repaid on the last day of its Interest Period to the extent that the amount of the New Revolving Facility Loan is equal to or greater than the amount of the Maturing Revolving Facility Loan; and
(b) to that extent, the amount of the New Revolving Facility Loan shall be deemed to have been credited to the account of the Borrower, and the Lenders shall only be obliged to make available an amount equal to the amount by which amount the New Revolving Facility Loan exceeds the Maturing Revolving Facility Loan. If the Borrower has not delivered a Utilisation Request in respect of a Maturing Revolving Facility Loan in accordance with Clause 5.1 (Delivery of a Utilisation Request for Loan), the Maturing Revolving Facility Loan shall, subject to the other provisions of this Agreement and always provided that amounts in excess of the reduced Revolving Facility Commitment shall be repaid pursuant to Clause 8.2 (Scheduled Reductions of Revolving Facility Commitments) below, be automatically rolled over with an Interest Period of three (3) months provided that the conditions set out in Clause 4.4 (Further conditions precedent) are fulfilled in the reasonable opinion of the Required Lenders. For the avoidance of doubt, the above automatic rollover mechanism requires the Borrower to deliver a Utilisation Request in the amount of USD 0 if no automatic rollover is to take place.
Repayment and Reductions