Common use of Optional Reduction of Commitments Clause in Contracts

Optional Reduction of Commitments. The Borrower may terminate or reduce the aggregate amount of the Commitments by giving the Administrative Agent notice (which shall be irrevocable) thereof no later than 10:00 a.m. (New York time) on the third Business Day before the requested date of such reduction, except that (i) each partial reduction of the aggregate amount of the Commitments shall be in an aggregate amount equal to $1,000,000 or any integral multiple of $500,000 in excess thereof and (ii) no reduction may reduce the aggregate amount of the Commitments to an amount less than the sum of the aggregate principal amount of all Loans and the amount of all Letter of Credit Participations outstanding on such date. Upon receipt of any such notice, the Administrative Agent shall promptly notify each Bank of the contents thereof and the amount to which such Bank's Commitment is to be reduced.