Common use of Mandatory Principal Prepayments Clause in Contracts

Mandatory Principal Prepayments. Debtor must prepay the Term Loan in the following amounts (a) 75% of the proceeds of all Historic Tax Credit Investments in Debtor, (b) 75% of any Film Tax Credits generated by Debtor, and (c) (i) an additional $90,000 on or before the 180th day following the Closing Date and (ii) an additional $90,000 on or before the 360th day following the Closing Date. Payments under clauses (a) and (b) are due upon Debtor’s receipt of such proceeds, and Debtor shall cause all Film Tax Credits to be sold through Voodoo subject to instructions to pay the proceeds thereof directly to Lender (with Voodoo being entitled to pay such proceeds directly to Lender in reliance solely on this Section in the absence of any additional instructions from Borrower).