Maximum Committed Amount definition
Examples of Maximum Committed Amount in a sentence
Any such increase to the Maximum Committed Amount will be made at the sole and absolute discretion of the Lenders and the Administrative Agent subject to, among other things, payment by the Borrower of the Increase Payment and no Event of Default, no Borrowing Base Deficiency and no Tier 1 Collateral Performance Trigger or Tier 2 Collateral Performance Trigger existing under the Facility.
In such event, then Grantor shall receive the partial release at no cost (i.e., no payment to Beneficiary shall be required) and either (i) additional collateral acceptable to Beneficiary shall be pledged to secure the entire Maximum Committed Amount or (ii) the Maximum Committed Amount shall be reduced, via Note amendment, so that the Note is adequately secured by the remaining collateral.
The Borrower may request, in writing delivered to the Administrative Agent, an increase in the Maximum Committed Amount.
Any release of collateral granted in connection with this provision without substitution of collateral of equal or more value shall cause a reduction in the Maximum Committed Amount of the Note in an amount equal to the reduction in the value of the collateral regardless of whether or not the parties execute an amendment to the Note reducing the Maximum Committed Amount.
In the event that the Note is paid down, and the Maximum Committed Amount is revised via Note amendment to an amount that allows one or more tract of secured real Property to be released, the parties may agree to reduce the Maximum Committed Amount and partially release secured Property so long as the Maximum Committed Amount is still adequately secured by the remaining collateral.