Reduction of Commitments Conversion Prepayments Sample Clauses

The "Reduction of Commitments; Conversion; Prepayments" clause governs how borrowers can decrease their borrowing capacity, convert between different types of loans, or make early repayments under a credit agreement. Typically, this clause outlines the procedures and notice requirements for reducing unused loan commitments, switching from one loan type (such as from a floating to a fixed rate), or paying off outstanding amounts before their scheduled due dates. Its core function is to provide flexibility for borrowers to manage their debt obligations efficiently while ensuring lenders are informed and protected against unexpected changes.