Fees Reductions of Commitment Sample Clauses

The "Fees; Reductions of Commitment" clause defines the obligations of a party to pay certain fees in connection with a financial commitment, and outlines the procedures and consequences when the committed amount is reduced. Typically, this clause specifies the types of fees due—such as commitment, facility, or unused fees—and details how these fees are calculated and adjusted if the total commitment is decreased, whether by prepayment, cancellation, or other means. Its core function is to ensure that the financial arrangements remain fair and transparent by adjusting fee obligations in line with changes to the committed amounts, thereby protecting both parties from misunderstandings or disputes over payment responsibilities.