Mandatory Amortization Amounts Sample Clauses
The Mandatory Amortization Amounts clause sets out the required payments that a borrower must make to reduce the principal balance of a loan over time. Typically, this clause details the schedule, frequency, and amounts of principal repayments that are not optional but are contractually required, such as monthly or quarterly payments. By specifying these mandatory payments, the clause ensures that the lender receives regular reductions in credit risk and that the loan is repaid in an orderly manner, preventing balloon payments or unexpected defaults at maturity.
Mandatory Amortization Amounts. As used in this Credit Agreement, the term “Mandatory Amortization Amounts” shall mean the obligation of the Loan Parties to amortize or prepay (as the case may be) the Initial Term Loan and any outstanding Delayed Draw Term Loans, as follows:
Mandatory Amortization Amounts. If (i) on the eighteen (18) month anniversary of the Commitment Termination Date, the Borrower has not made all required payments of Mandatory Amortization Amounts pursuant to Section 2.05(b) and (ii) on or after the twenty-one (21) month anniversary of the Commitment Termination Date, the Borrower and the Administrative Agent have not agreed on a payment schedule, then the Borrower shall sell Collateral as directed by the Administrative Agent and use all proceeds to repay the Advances Outstanding.