Common use of Voluntary Commitment Reduction Clause in Contracts

Voluntary Commitment Reduction. (a) The Borrower shall have the right any time and from time to time, without premium or penalty, upon three (3) Business Days’ prior written notice to the Administrative Agent to permanently reduce, in whole multiples of $1,000,000, or terminate the Commitments; provided that any such reduction or termination shall be accompanied by (i) the payment in full of any Commitment Fee then accrued on the amount of such reduction or termination and (ii) the prepayment of the Loans, together with the full amount of interest accrued on the principal sum to be prepaid, to the extent that the Usage exceeds the Commitment as so reduced or terminated; and provided further that the Commitments may not be reduced below the Usage. Each reduction of Commitments shall ratably reduce the Commitments of the Lenders, except as otherwise provided in an Additional Credit Extension Amendment as permitted in the definition of “Class.” From the effective date of any such reduction or termination, the obligations of the Borrower to pay the Commitment Fee pursuant to Section 2.3 [Commitment Fees] shall correspondingly be reduced or cease. (b) All voluntary commitment reduction notices shall be irrevocable, except that any notice of voluntary commitment reduction may state that such notice is conditional upon the consummation of a financing transaction, in which case such notice of voluntary commitment reduction may be revoked or delayed by the Borrower (by notice to the Administrative Agent on or prior to the specified date of reduction) if such condition is not satisfied.