Tax Equity Reduction Clause Samples

Tax Equity Reduction. In the event that (A) (1) upon the execution of any limited liability company agreement that is a Tax Equity Document and upon the execution of any amendments thereto, the percentage of cash that is distributable to the Subsidiary of the Borrower party thereto is less than as set forth in the Base Case Model as of the Initial Project Funding Date for such Project or (B) a Material Cash Diversion Event occurs under any Tax Equity Document, in each case, the Borrower shall prepay an aggregate principal amount of Loans (together with any amounts required pursuant to Section 2.04(a)(ii)) necessary to comply with the Maximum Loan Amount as of the date of such prepayment, calculated and determined giving effect to such reduction or Material Cash Diversion Event, in each case within fifteen (15) Business Days thereof.