Common use of Reduction of Facility Limit Clause in Contracts

Reduction of Facility Limit. 7.7.1 At the request of the Company by giving not less than ten Business Day’s prior written notice to Burdale, the Facility Limit may from time to time be reduced provided that on or before the effective date for such reduction the Company shall pay (or procure payment) to Burdale of: (a) such amount as may be necessary in prepayment of the Loans and/or as cash collateral for Outstanding Purchase Price and/or Burdale’s contingent obligations under any issued L/C or unmatured Forex Transaction to ensure that the Facility Companies remain in compliance with the Availability Limits (as adjusted to take account of such amendments pursuant to Clause 5.7); and (b) a fee of 1% of the amount of the reduction of the Facility Limit. 7.7.2 Any exercise by Burdale of its rights under Clause 16.2(b) and/or 16.3 and/or the operation of Clause 7.6 shall be deemed for the purposes of paragraph 7.7.1(b) above to be a reduction in the Facility Limit in an amount equal to the amount of the Facility or Facilities so cancelled.

Reduction of Facility Limit. 7.7.1 At the request of the Company by giving not less than ten Business Day’s 's prior written notice to Burdale, the Facility Limit may from time to time be reduced provided that on or before the effective date for such reduction the Company shall pay (or procure payment) to Burdale of: (a) such amount as may be necessary in prepayment of the Loans and/or as cash collateral for Outstanding Purchase Price and/or Burdale’s 's contingent obligations under any issued L/C or unmatured Forex Transaction to ensure that the Facility Companies remain in compliance with the Availability Limits (as adjusted to take account of such amendments pursuant to Clause 5.7); and (b) a fee of 1% of the amount of the reduction of the Facility Limit. 7.7.2 Any exercise by Burdale of its rights under Clause 16.2(b) and/or 16.3 and/or the operation of Clause 7.6 shall be deemed for the purposes of paragraph 7.7.1(b) above to be a reduction in the Facility Limit in an amount equal to the amount of the Facility or Facilities so cancelled.