Mandatory Prepayments of Loans Mandatory Commitment Reductions Clause Samples
The "Mandatory Prepayments of Loans; Mandatory Commitment Reductions" clause requires borrowers to repay outstanding loan amounts or reduce their available borrowing commitments under certain specified circumstances, such as asset sales, receipt of insurance proceeds, or excess cash flow events. In practice, this means that if the borrower receives unexpected funds or triggers specific financial thresholds, they must use those funds to pay down the loan or reduce the lender's obligation to provide further credit. This clause serves to protect lenders by ensuring that significant inflows to the borrower are used to reduce credit risk and maintain the agreed-upon leverage levels, thereby minimizing the lender's exposure.
Mandatory Prepayments of Loans Mandatory Commitment Reductions. If on any date the Effective Amount of L/C Obligations exceeds the L/C Cap, the Borrower shall Cash Collateralize on such date the outstanding Letters of Credit in an amount equal to the excess above any such cap. If on any date after giving effect to any Cash Collateralization made on such date pursuant to the preceding sentence, the Effective Amount of all Revolving Loans then outstanding plus the Effective Amount of all L/C Obligations exceeds the lesser of (a) the Collateral Position or (b) the total Uncommitted Line, or if the Effective Amount of all Revolving Loans under the Borrowing Base Line then outstanding, plus the Effective Amount of all L/C Obligations under such Line exceed the Borrowing Base Advance Cap, the Borrower shall immediately, and without notice or demand, prepay the outstanding principal amount of the Revolving Loans and L/C Advances by an amount equal to the applicable excess.
Mandatory Prepayments of Loans Mandatory Commitment Reductions. (a) If on the Closing Date the aggregate Term Commitments shall exceed the outstanding principal amount of the Term Loans made, such unused portion of the Term Commitments shall automatically terminate on the Closing Date.
(b) If at any time the Effective Amount of Revolving Loans and Swingline Loans PLUS the Effective Amount of any L/C Obligations shall exceed the Borrowing Base, Holdings, within 15 Business Days of the earlier of (i) the date a Responsible Officer of Holdings became aware of such excess, and (ii) notice from the Agent informing Holdings of the existence of such excess, shall prepay the outstanding principal amount of the Loans and any L/C Advances, in an amount equal to such excess and, if necessary (after giving effect to such prepayment), shall also Cash Collateralize outstanding Letters of Credit in an amount equal to the excess of the maximum amount then available to be drawn under the Letters of Credit over the Borrowing Base.
(c) If on any date the Effective Amount of L/C Obligations exceeds the L/C Commitment, Holdings shall Cash Collateralize on such date the outstanding Letters of Credit in an amount equal to the excess of the maximum amount then available to be drawn under the Letters of Credit over the Aggregate L/C Commitment.
(d) If on any date (after giving effect to any Cash Collateralization made on such date pursuant to subsection 2.08(b)), the Effective Amount of all Revolving Loans and Swingline Loans then outstanding PLUS the Effective Amount of all L/C Obligations exceeds the combined Revolving Commitments of the Banks, Holdings shall immediately, and without notice or demand, prepay the outstanding principal amount of the Revolving Loans, Swingline Loans and L/C Advances by an amount equal to the applicable excess.
(e) If Holdings, the Company or any other Subsidiary shall at any time or from time to time make or agree to make a Disposition, then (i) Holdings shall promptly notify the Agent in advance of such Disposition (including the amount of the estimated Net Proceeds to be received by Holdings, the Company or such other Subsidiary in respect thereof) and (ii) if, after giving effect to such Disposition, the Net Proceeds of all Dispositions which have occurred in such fiscal year are greater than $1,000,000 in the aggregate, then promptly upon, and in no event later than one Business Day after, receipt by Holdings, the Company or the other Subsidiary of the Net Proceeds of such Disposition, Holdings shall prepay...
Mandatory Prepayments of Loans Mandatory Commitment Reductions. (a) If on any date the Effective Amount of L/C Obligations exceeds the L/C Commitment, the Company shall Cash Collateralize on such date the outstanding Letters of Credit in an amount equal to the excess of the maximum amount then available to be drawn under the Letters of Credit over the Aggregate L/C Commitment. Subject to Section 4.04, if on any date after giving effect to any Cash Collateralization made on such date pursuant to the preceding sentence, the Effective Amount of all Revolving Loans then outstanding plus the Effective Amount of all L/C Obligations exceeds the combined Commitments, the Company shall immediately, and without notice or demand, prepay the outstanding principal amount of the Revolving Loans and L/C Advances by an amount equal to the applicable excess.
Mandatory Prepayments of Loans Mandatory Commitment Reductions. (a) If on any date the Effective Amount of L/C Obligations exceeds the L/C Commitment, the Company shall Cash Collateralize on such date the outstanding Letters of Credit in an amount equal to the excess of the maximum amount then available to be drawn under the Letters of Credit over the Aggregate L/C Commitment. Subject to Section 4.04, if on any date after giving effect to any Cash Collateralization made on such date pursuant to the preceding sentence, the Effective Amount of all Revolving Loans then outstanding plus the Effective Amount of all L/C Obligations exceeds the lesser of (i) the Borrowing Base Amount or (ii) the combined Commitments minus (unless otherwise agreed to by the Majority Banks) the amount of the 1997_Senior Note Reserve as of such date, the Company shall immediately, and without notice or demand, prepay the outstanding principal amount of the Revolving Loans and L/C Advances by an amount equal to such excess.
(b) Upon receipt by the Company or any Material Domestic Subsidiary of any Net Proceeds the Company shall immediately, and without notice or demand, prepay the outstanding principal amount of the Revolving Loans and L/C Advances by an amount equal to the lesser of (i) 75% of such Net Proceeds or (ii) the outstanding principal amount of Revolving Loans and L/C Advances. On such date the Commitments shall be reduced by an amount equal to 75% of such Net Proceeds. Once reduced in accordance with this subsection, the Commitments may not be increased. Any reduction in the Commitments shall be applied to each Bank according to its Pro Rata Share. If and to the extent specified by the Company in a notice to the Agent, some or all of the reduction in the combined Commitments shall be applied to reduce the L/C Commitment unless, after giving effect thereto, the Effective Amount of all L/C Obligations then outstanding would exceed the L/C Commitment. All accrued commitment fees to, but not including, the effective date of any such reduction of the Commitments shall be paid on the date of such reduction.
Mandatory Prepayments of Loans Mandatory Commitment Reductions. Subject to Section 4.04, if on any date on or prior to the Revolving Loan Termination Date the Effective Amount of all Facility A Revolving Loans then outstanding exceeds the combined Facility A Commitments, the Borrower shall immediately, and without notice or demand, prepay the outstanding principal amount of Facility A Revolving Loans by an aggregate amount equal to the applicable excess.
Mandatory Prepayments of Loans Mandatory Commitment Reductions. 20 (a) Asset Dispositions..........................................20 (b) Payments on Overall Contract................................20 (c) General.....................................................20 (d)
Mandatory Prepayments of Loans Mandatory Commitment Reductions. (a) If on the Availability Expiry Date the Commitment shall exceed the outstanding principal amount of the Loans made, such unused portion of the Commitment shall automatically terminate on the Availability Expiry Date.
(b) If the Company or any of its Subsidiaries shall at any time after the Closing Date make or agree to make a Disposition, or shall suffer an Event of Loss, then (i) the Company shall promptly notify the Bank of such proposed Disposition or Event of Loss (including the amount of the estimated Net Proceeds to be received in respect thereof) and (ii) promptly upon receipt by the Company or the Subsidiary of the Net Proceeds of such Disposition or Event of Loss, the Company shall prepay Loans in an aggregate amount equal to the amount of such Net Proceeds.
(c) If after the Closing Date the Company issues new common or preferred equity, the Company shall promptly notify the Bank of the estimated Net Proceeds of such issuance to be received by the Company. Promptly upon its receipt of Net Proceeds of such issuance, the Company shall prepay Loans in an aggregate amount equal to the amount of such Net Proceeds; provided that at any time the Company has attained Investment
Mandatory Prepayments of Loans Mandatory Commitment Reductions. (a) If a Change of Control occurs following the Ferrellgas Joinder Event, the Borrower shall immediately, and without notice or demand, prepay the Obligations in full, including the aggregate principal amount of all outstanding Loans, all accrued and unpaid interest thereon and all amounts payable under Section 3.04 hereof, in each case on the 30th day after such Change of Control shall have occurred and be continuing.
(b) The Commitments shall be automatically reduced to zero at 5:00 p.m. San Francisco time on the Effective Date.
Mandatory Prepayments of Loans Mandatory Commitment Reductions. (a) If on any date the Effective Amount of L/C Obligations exceeds the L/C Commitment, the Company shall Cash Collateralize on such date the outstanding Letters of Credit in an amount equal to the excess of the maximum amount then available to be drawn under the Letters of Credit over the Aggregate L/C Commitment.
(b) Subject to Section 4.4, if on any date after giving effect to any Cash Collateralization made on such date pursuant to the preceding sentence, the Effective Amount of all Revolving Loans then outstanding plus the Effective Amount of all L/C Obligations exceeds the Revolving Commitments, the Company shall immediately, and without notice or demand, prepay the outstanding principal amount of the Revolving Loans and L/C Advances by an amount equal to the applicable excess.
(c) The Company (or, in the case of subsection (ii), if the Administrative Agent is holding the proceeds of insurance as additional Collateral pursuant to the terms of the Security Agreement, the Administrative Agent upon the Company's instruction) shall make a prepayment of the Loans at the following times and in the following amounts:
(i) Within 60 days after any sale, transfer or other disposition by the Company or any Subsidiary of any asset outside the ordinary course of its business (other than sales of Receivables Program Assets to the extent the Invested Amount does not exceed $275,000,000 at any time outstanding, the sale and leaseback of the Grand Rapids, Michigan distribution center at any time prior to March 31, 1998 and sales in an amount not in excess of $10,000,000 prior to January 11, 1998 in connection with the Transportation Equipment Sale and Leaseback) and to a Person other than the Company or a Subsidiary, in an amount equal to 100% of the Net Cash Proceeds of such sale, transfer or other disposition to the extent the aggregate of such Net Cash Proceeds from any such sale, transfer or disposition exceeds $3,000,000 or from all such sales, transfers or dispositions received after the date hereof exceeds $10,000,000.
(ii) Within 60 days after the receipt of any insurance proceeds (or other similar recoveries) by the Company or any Subsidiary or by the Administrative Agent (to the extent the Administrative Agent is holding the insurance proceeds as additional Collateral pursuant to Section 6 of the Security Agreement) from any casualty loss incurred by the Company or any Subsidiary, in an amount equal to 100% of such insurance proceeds (or other similar recove...
Mandatory Prepayments of Loans Mandatory Commitment Reductions. 8 Extension of Revolving Termination Date/ Repayment..................27 .........................................................27 2.9 Interest............................................................28 2.10 Fees...............................................................29 (a) Arrangement, Agency Fees...................................29 (b)