Common use of Application of proceeds and reduction of Commitments Clause in Contracts

Application of proceeds and reduction of Commitments. a) Any amount prepaid or cancelled pursuant to this Agreement shall be applied against the Facility. b) Any amount cancelled shall reduce each Lender’s Commitment in respect of the Facility by an amount equal to the proportion of the cancelled amount of the Facility which (prior to such reduction) its Commitment in respect of the Facility bears to the Available Facility of that Facility on that date. c) If all or part of a Loan is repaid or prepaid and is not available for redrawing (other than by operation of Clause 4.2 (Further conditions precedent)), an amount of the Commitments (equal to the amount of the amount of the Loan which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment. Any cancellation under this paragraph c) shall reduce the Commitments of the Lenders rateably.