Common use of Prepayments of the Clause in Contracts

Prepayments of the. Working Capital Facility made pursuant to clause (i) or (ii) of this Section 2.06(b) shall be, first, applied to prepay Letter of Credit Advances outstanding at such time until all Letter of Credit Advances are paid in full, and second, applied to prepay Working Capital Advances comprising part of the same Working Capital Borrowing and outstanding at such time until all Working Capital Advances are paid in full; and, in the case of prepayments of the Working Capital Facility required pursuant to clause (i) of this Section 2.06(b), the amount remaining, if any, after the prepayment in full of all Advances outstanding at such time (the sum of such prepayment amounts and remaining amount being, collectively, the "Reduction Amount") may be retained by the Borrower and the Working Capital Facility shall be automatically and permanently reduced as set forth in Section 2.05(b)(i).

Appears in 2 contracts

Sources: Credit Agreement (Medcath Corp), Credit Agreement (Medcath Corp)