Mandatory Termination or Reduction Clause Samples
The Mandatory Termination or Reduction clause requires that a contract or agreement be ended or scaled down under specific, predefined circumstances. Typically, this clause is triggered by events such as regulatory changes, failure to meet certain conditions, or the occurrence of force majeure events, and it may dictate that obligations are either fully terminated or proportionally reduced. Its core function is to provide a clear mechanism for adjusting or ending contractual commitments when continuing as originally planned becomes impractical or impossible, thereby managing risk and ensuring both parties have certainty about their rights and obligations in such situations.
Mandatory Termination or Reduction. On April 3, 2023, if the Borrower has not made Borrowings of the Term Loans in an aggregate principal amount of at least equal to fifty percent (50%) of the sum of the Amendment No. 1 Incremental Commitments plus the Amendment No. 2 Incremental Commitments as in effect on the Amendment No. 2 Effective Date, then the Amendment No. 1 Incremental Commitments and the Amendment No. 2 Incremental Commitments will be reduced, automatically and without further action by any party, to two times the Borrowing of Term Loans made during the period commencing on the Amendment No. 2 Effective Date and terminating on April 3, 2023, and the Amendment No. 1 Incremental Commitments and the Amendment No. 2 Incremental Commitments and Term Loan Amount shall be reduced by the amount of such reduction (for example, if the Borrower has made only $25,000,000 of additional Borrowings of Term Loans by April 3, 2023, then the available unused Amendment No. 1 Incremental Commitments and the Amendment No. 2 Incremental Commitments shall be permanently reduced from $120,000,000 to $50,000,000 on such date). If requested by the Administrative Agent, the Borrower shall deliver to the Administrative Agent those notices required by Section 2.11(d) that are necessary pursuant to Section 2.9 to reflect the reductions in the unused Amendment No. 1 Incremental Commitments and the Amendment No. 2 Incremental Commitments described in the preceding sentence.
Mandatory Termination or Reduction. Unless earlier terminated pursuant to Section 6.2, the term (the “Availability Period”) of the Revolving Commitments shall commence on the Closing Date and terminate and expire, and the Borrower shall return or cause to be returned all Letters of Credit to the Fronting Banks, on the Revolving Credit Maturity Date.
Mandatory Termination or Reduction of the Swingline Commitments and the Revolving Commitments;
Mandatory Termination or Reduction. On April 3, 2023, if the Borrower has not made Borrowings of the Term Loans in an aggregate principal amount of at least equal to fifty percent (50%) of the total Term Loan Commitments as in effect on the Closing Date, then the total Term Loan Commitments will be reduced, automatically and without further action by any party, to two times the Borrowing of Term Loans made on or before such date and the Term Loan Amount shall be reduced by the amount of such reduction (for example, if the Borrower has made only $100,000,000 of Borrowings of Term Loans by April 3, 2023, then the available unused Term Loan Commitments shall be permanently reduced from $300,000,000 to $100,000,000 on such date). If requested by the Administrative Agent, the Borrower shall deliver to the Administrative Agent those notices required by Section 2.11(d) that are necessary pursuant to Section 2.9 to reflect the reductions in the unused Term Loan Commitments described in the preceding sentence.
Mandatory Termination or Reduction. (i) The Term Commitments shall terminate on the last day of the Term Loan Availability Period.
(ii) If the aggregate amount of the Revolving Credit Commitments on the first Commitment Reduction Date exceeds $450,000,000 (the amount of such excess being the "Excess Amount"), the Revolving Credit Commitments shall be reduced on each Commitment Reduction Date by an amount equal to one-third of the Excess Amount.
(iii) On each Commitment Reduction Date, the Borrowers shall repay such principal amount (together with accrued interest thereon) of each Bank's Project Loans and/or General Purpose Loans as may be necessary so that immediately after such repayment such Bank's Revolving Credit Exposure shall not exceed its Revolving credit Commitment as then reduced.
(iv) The Revolving Credit Commitments shall terminate on the Final Maturity Date.
Mandatory Termination or Reduction. (a) Unless earlier terminated pursuant to Section 6.2, the term (the “Availability Period”) of the Revolving Commitments shall commence on the Closing Date and terminate and expire, and the Borrower shall return or cause to be returned all Letters of Credit to the Fronting Banks, on the Revolving Credit Maturity Date.
(b) On January 24, 2018, if the Borrower has not made Borrowings of the Term Loans in an aggregate principal amount of at least equal to fifty percent (50%) of the total Term Loan Commitments as in effect on the Closing Date, then the total Term Loan Commitments will be reduced to two times the Borrowing of Term Loans made on or before such date and the Term Loan Amount shall be reduced by the amount of such reduction (for example, if the Borrower has made only $50,000,000 of Borrowings of Term Loans by January 24, 2018, then the available unused Term Loan Commitments shall be permanently reduced from $100,000,000 to $50,000,000 on such date). If requested by the Administrative Agent, the Borrower shall deliver to the Administrative Agent those notices required by Section 2.11(g) that are necessary to effectuate the reductions in the unused Term Loan Commitments described in the preceding sentence.