Common use of VOLUNTARY REDUCTION IN COMMITMENTS Clause in Contracts

VOLUNTARY REDUCTION IN COMMITMENTS. Upon sixty (60) days' advance written notice by Borrower to Agent and all of the Lenders, Borrower may reduce the Lenders' Revolving Commitments, Operating Commitments, Short-term Acquisition Commitments, Long-term Acquisition Commitments, Overnight Commitment or Letter of Credit Commitment provided, that after giving effect to such reduction, the outstanding principal balance of the corresponding Loans does not exceed the Commitments being reduced and provided further that after giving effect to such reduction, the sum of the outstanding principal balance of the Operating Loans and the Acceptance Advances does not exceed the Operating Commitments and provided further that after giving effect to such reduction, the then outstanding Letter of Credit Usage does not exceed the Letter of Credit Commitment and provided further that neither the Long-term Acquisition Commitment nor the Letter of Credit Commitment may be voluntarily reduced under this Section 2.11(a) unless both such Commitments are fully and simultaneously terminated. Any reduction in the Commitments for any line of credit hereunder shall be in an amount not less than an amount equal to the lesser of (a) One Million Dollars ($1,000,000), and (b) the applicable Commitments then in effect, and shall permanently reduce each Lender's corresponding Commitment, so that, after giving effect to such reduction, each Lender's pro rata share of the Commitments for such line of credit will be unchanged.