Fees Commitment Reductions and Terminations Clause Samples

The "Fees; Commitment Reductions and Terminations" clause defines the borrower's obligations to pay certain fees and outlines the procedures for reducing or terminating the lender's commitment under a loan agreement. Typically, this clause specifies when and how fees such as commitment fees, prepayment fees, or termination fees are calculated and paid, and details the process for the borrower to request a reduction or early termination of the loan commitment. Its core practical function is to ensure both parties understand the financial consequences and procedural requirements associated with changes to the loan commitment, thereby reducing the risk of disputes and providing clarity on cost implications.