Common use of Reduction of Commitments Prior to Project Completion Clause in Contracts

Reduction of Commitments Prior to Project Completion. Prior to the Project Completion Date, the Principal Borrower may, at its option, permanently reduce the Commitments under any Credit Facility by cancelling all or any part of the undrawn portion of such Credit Facility, provided that: (i) in the case of any cancellation and permanent reduction under either the Construction Facility or the Contingent Facility, the Principal Borrower shall be able to demonstrate to the satisfaction of the Agent in consultation with the Independent Engineer, each acting reasonably, that: (A) the Total Borrower Equity Financing plus the remaining undrawn Commitments under the Construction Facility and the Contingent Facility (subject to Sections 2.1(b)(iii) and 2.2(b)(ii)(C)) are sufficient to pay any then remaining Project Costs necessary to achieve Project Completion; and (B) the Projected Project Completion Date, as confirmed by the Independent Engineer, is anticipated to be attained within 3 months after the proposed date of cancellation (and, for certainty, prior to the Outside Date); (ii) the Principal Borrower shall provide the Agent with at least 10 Banking Days’ prior written notice of any such cancellation (or such shorter period as the Agent may agree); (iii) each such cancellation shall be a minimum of Cdn.$5,000,000 and in whole multiples of Cdn.$1,000,000 thereafter; (iv) any such cancellation shall be allocated among the Lenders based on their respective Applicable Percentages under the applicable Credit Facility at the time of cancellation; and (v) any cancellation notice shall be irrevocable.