Common use of Required Prepayment Clause in Contracts

Required Prepayment. In the event that (1) more than $100,000 of the Equipment to which Advance Payments relate is deemed first placed in service during a calendar quarter, or (2) any Equipment to which Advance Payments relate is deemed first placed in service during a calendar year, then, on the final day of each such calendar quarter or calendar year, as the case may be, Maker shall prepay an amount of Principal, together with accrued and unpaid interest thereon at the applicable rate aforesaid, which equals the cost of such Equipment. Holder shall apply, and Maker directs Holder to apply, the proceeds of the Lease to such prepayment, in accordance with and subject to the terms and conditions of the Funding Agreement dated as of May 12, 1997.