Common use of Required Repayments Clause in Contracts

Required Repayments. In the event that the outstanding principal balance of the Loan shall at any time exceed the Borrowing Base, the Borrower will immediately upon discovery of the existence of such excess borrowings, make a principal payment which will reduce the outstanding principal balance of the Loan to an amount which does not exceed the Borrowing Base, such payment to be applied ratably in the manner set out in Section 2.6 hereof. Without limiting the generality of the foregoing, if a Receivable shall cease to be an Eligible Receivable or a state shall cease to be an Eligible State, then Borrower will immediately make a principal payment, if necessary, in order to reduce the principal balance of the Loan to an amount which does not exceed the Borrowing Base.