Reduction of Indebtedness Clause Samples
The Reduction of Indebtedness clause outlines the terms under which a party’s outstanding debt obligations may be decreased or satisfied. Typically, this clause specifies the conditions, such as payments, set-offs, or forgiveness, that result in a reduction of the principal or interest owed. For example, it may allow a borrower to reduce their debt by making early payments or by meeting certain performance milestones. The core function of this clause is to provide a clear mechanism for decreasing debt, thereby offering flexibility to the debtor and managing the creditor’s risk exposure.
Reduction of Indebtedness. If at any time and for any reason the aggregate outstanding principal amount of Advances hereunder to Borrower shall exceed the then applicable Revolving Credit Commitment, Borrower shall immediately reduce any pending request for an Advance on such day by the amount of such excess and, to the extent any excess remains thereafter, immediately repay an amount of the Indebtedness equal to such excess.
Reduction of Indebtedness. If at any time and for any reason the aggregate outstanding principal amount of Advances hereunder to Borrower shall exceed the then applicable Capex Credit Commitment, Borrower shall immediately reduce any pending request for an Advance on such day by the amount of such excess and, to the extent any excess remains thereafter, immediately repay an amount of the Indebtedness equal to such excess.
Reduction of Indebtedness. If at any time and for any reason (a) the aggregate outstanding principal amount of Advances hereunder to Borrower, plus the outstanding Letter of Credit Reserve, shall exceed the Revolving Credit Commitment, or (b) the Letter of Credit Reserve exceeds the Letter of Credit Sublimit, then, in the case of (a), Borrower shall immediately reduce any pending request for an Advance on such day by the amount of such excess and, to the extent any excess remains thereafter, immediately repay an amount of the Indebtedness equal to such excess, and, to the extent any such excess Indebtedness, attributable to any Letters of Credit, remains outstanding after prepayment of the Advances, Borrower shall provide cash collateral upon demand in an amount equal to the maximum amount that may be available to be drawn at any time prior to the stated expiry of all outstanding Letters of Credit and, in the case of (b), upon Bank’s demand, Borrower shall deposit with Bank cash collateral in an amount equal to the excess. Borrower acknowledges that, in connection with any repayment required hereunder, it shall also be responsible for the reimbursement of any prepayment or other costs required under the terms of the Revolving Credit Note.
Reduction of Indebtedness. If at any time and for any reason the aggregate outstanding principal amount of Advances hereunder to Borrower plus the Foreign Exchange Reserve, shall exceed the lesser of (i) the Revolving Credit Amount or (ii) the then applicable Borrowing Base, then Borrower shall immediately reduce any pending request for an Advance on such day by the amount of such excess and, to the extent any excess remains thereafter, immediately repay an amount of the Indebtedness equal to such excess. Borrower acknowledges that, in connection with any repayment required hereunder, it shall also be responsible for the reimbursement of any prepayment or other costs required under the terms of the Revolving Credit Note.
Reduction of Indebtedness. Guarantor agrees that any Indebtedness from revolving loans will not be deemed repaid or reduced by collection and subsequent relending of the proceeds of accounts, chattel paper and similar Collateral.
Reduction of Indebtedness. (1) In re- turn for the individual’s agreement to perform hours of services totaling not more than 40 times the number of weeks in the contract, VA will reduce the eligible person’s outstanding in- debtedness by an amount equal to the higher of—
(i) The hourly minimum wage in ef- fect under section 6(a) of the Fair Labor Standards Act of 1938 times the number of hours the individual works; or
(ii) The hourly minimum wage under comparable law of the State in which the services are performed times the number of hours the individual works.
(2) VA will reduce the individual’s debt by the amount of the money earned for the performance of work- study services after the completion of each 50 hours of services (or in the case of any remaining hours required by the contract, the amount for those hours). (Authority: 38 U.S.C. 3485(e); Pub. L. 102–16)
Reduction of Indebtedness. Borrower shall pay Lender $2,090,000, representing all but $10,000 of the principal and accrued but unpaid interest due Lender under the Note.
Reduction of Indebtedness. Notwithstanding anything contained in this Agreement to the contrary, the aggregate principal amount of the Revolving Credit Loan at any time outstanding shall not exceed the Revolving Credit Loan Maximum Amount, and the aggregate principal amount of the $5,000,000.00 Loan outstanding at any time shall not exceed the $5,000,000.00 Loan Maximum Amount. If said limitation is exceeded at anytime, Borrower shall immediately, without demand by Bank, pay to Bank an amount not less than such excess, or, if Bank, in its sole discretion, shall so agree, Borrower shall provide Bank cash collateral in an amount not less than such excess, and Borrower hereby pledges and grants to Bank a security interest in such cash collateral so provided to Bank.
Reduction of Indebtedness. Upon the expiry of the Option, the Borrower may upon delivery of a written notice to the Lender permanently and irrevocably reduce the amount of the Loan and the amount of the Indebtedness to the amount specified in such notice.
Reduction of Indebtedness. Optional Reduction or Termination of Revolving Credit Aggregate Commitment 2.11 Revolving Credit Commitment Fee