Reduction of the Total Commitment Clause Samples

The "Reduction of the Total Commitment" clause allows the borrower to decrease the total amount of credit or loan commitments available under a financing agreement. Typically, this clause outlines the process by which the borrower can notify the lender of their intention to reduce the commitment, often requiring advance written notice and specifying minimum reduction amounts or increments. Its core practical function is to provide flexibility for the borrower to adjust their borrowing needs over time, while also enabling the lender to manage their risk exposure and capital allocation more effectively.
Reduction of the Total Commitment. Subject to the prior consent of the Original Syndicate Members the Company may, by written notice to the Syndicate Members, reduce the Total Commitment by an amount up to the Total Available Commitment. Clause 7.3 shall apply mutatis mutandis.
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Reduction of the Total Commitment. (a) Upon any prepayment pursuant to Clause 11.3 (Mandatory Prepayment in Full): (i) if each Borrower SPV is or has been subject to such Clause, the Total Commitments (and the Commitments of each Lender under each Tranche) at such time shall each be cancelled in full; and (ii) if a Borrower SPV under either the Euro Tranche or the Italian Tranche (the “Relevant Tranche”) (but not the Borrower SPV under the other Tranche) has been subject to such Clause, the Commitments of each Lender under such Tranche at such time shall be cancelled in full. For the avoidance of doubt, to the extent that (a) the Italian Tranche is fully prepaid by a Borrower SPV under Clause 11.3 (Mandatory Prepayment in Full) and (b) the Euro Tranche is not prepaid by a Borrower SPV under Clause 11.3 (Mandatory Prepayment in Full), the Total Commitments shall not be reduced and Clause 2B.5 (Rebalancing Process) shall apply on the date of the prepayment (the “Cancellation Rebalancing Date”). (b) Upon any prepayment pursuant to paragraph (a) of Clause 11.4, (i) the Commitments at such time under the Tranche in respect of which the relevant Obligor is a Borrower shall be cancelled in an aggregate amount equal to the amount of such Commitments multiplied by a percentage equal to (x) the Borrower Vehicle Fleet NBV (as at the immediately preceding Calculation Date) of such Obligor divided by (y) the aggregate of the Borrower Vehicle Fleet NBV of all Ultimate Borrowers as at the same Calculation Date, (ii) the Commitments of each Lender under such Tranche shall accordingly be cancelled pro rata and (iii) such Obligor shall no longer be entitled to request Advances under the Facility.
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Reduction of the Total Commitment. The Company shall have the right, upon not less than three Business Days’ prior written notice to the Administrative Agent, to permanently reduce or terminate the amount of the Total Commitment; provided, however, that no such reduction or termination shall be permitted if, after giving effect thereto and to any prepayments of the Loans made on the effective date thereof, (i) Aggregate RC Outstandings would exceed the Total Revolving Credit Commitment as then reduced, (ii) Aggregate TL Outstandings would exceed the Total Term Loan Commitment as then reduced, (iii) the Aggregate Letters of Credit Outstanding would exceed the sum of the Commercial Letter of Credit Commitment plus the Standby Letter of Credit Commitment as then reduced or (iv) Aggregate Outstandings would exceed the Total Commitment as then reduced; provided, further, that any reduction or termination requiring prepayment of any Libor Rate Loan shall be made only on the last day of the Interest Period with respect thereto. Any partial reduction shall be in the amount of $5,000,000 or whole multiples of $1,000,000 in excess thereof, and shall reduce permanently the amount of the Total Commitment then in effect and shall be allocated to such of the Commitments as shall be selected by the Company in order to be in compliance with this Section 2.06. The Administrative Agent shall promptly notify each Lender of each notice from the Company to permanently reduce the amount of the Total Commitment pursuant to this Section 2.06.
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Related to Reduction of the Total Commitment

  • Reduction of Total Commitment The Borrower shall have the right at ----------------------------- any time and from time to time upon five (5) Business Days prior written notice to the Agent to reduce by $2,500,000 or an integral multiple of $500,000 in excess thereof or terminate entirely the Total Commitment, whereupon the Commitments of the Banks shall be reduced pro rata in accordance with their --- ---- respective Commitment Percentages of the amount specified in such notice or, as the case may be, terminated. Promptly after receiving any notice of the Borrower delivered pursuant to this (S)2.3, the Agent will notify the Banks of the substance thereof. Upon the effective date of any such reduction or termination, the Borrower shall pay to the Agent for the respective accounts of the Banks the full amount of any commitment fee then accrued on the amount of the reduction. No reduction or termination of the Commitments may be reinstated.

  • Reduction of the Commitments (a) The Borrower shall have the right, upon at least three Business Days’ irrevocable notice to the Administrative Agent, to terminate in whole or reduce ratably in part the unused portion of the Commitments; provided that each partial reduction shall be in the aggregate amount of $500,000 or in integral multiples of $100,000 in excess thereof. (b) Other than as provided in Section 2.04(c) below, any reduction and termination of the Commitments pursuant to this Section 2.04 shall be applied ratably to each Lender’s Commitment and shall be permanent, with no obligation of the Lenders to reinstate such Commitments. (c) In the event of a Defaulting Lender, the Borrower, at the Borrower’s election may (with the consent of the Administrative Agent) elect to terminate such Defaulting Lender’s Commitment hereunder; provided that (i) such termination must be of the Defaulting Lender’s entire Commitment, (ii) the Borrower shall pay all amounts owed by the Borrower to such Defaulting Lender under this Agreement and under the other Loan Documents (including principal of and interest on the Advances owed to such Defaulting Lender, accrued commitment fees, and letter of credit fees but specifically excluding any amounts owing under Section 2.12 as result of such payment of Advances) and shall deposit with the Administrative Agent into the Cash Collateral Account cash collateral in the amount equal to such Defaulting Lender’s ratable share of the Letter of Credit Exposure, (iii) a Defaulting Lender’s Commitment may be terminated by the Borrower under this Section 2.04(c) if and only if at such time, the Borrower has elected, or is then electing, to terminate the Commitments of all then existing Defaulting Lenders. Upon written notice to the Defaulting Lender and Administrative Agent of the Borrower’s election to terminate a Defaulting Lender’s Commitment pursuant to this clause (c) and the payment and deposit of amounts required to be made by the Borrower under clause (ii) above, (A) such Defaulting Lender shall cease to be a “Lender” hereunder for all purposes except that such Lender’s rights under Sections 2.13, 2.14, and 9.07 shall continue with respect to events and occurrences occurring before or concurrently with its ceasing to be a “Lender” hereunder, (B) such Defaulting Lender’s Commitment shall be deemed terminated, and (C) such Defaulting Lender shall be relieved of its obligations hereunder.

  • Reduction of Commitment On the last Trading Day of each Pricing Period, the Investor’s Total Commitment under this Agreement automatically (and without the need for any amendment to this Agreement) shall be reduced, on a dollar-for-dollar basis, by the total amount of the Fixed Request Amount and the Optional Amount Dollar Amount, if any, for such Pricing Period paid to the Company at the Settlement Date.

  • Total Commitment The sum of the Commitments of the Banks, as in effect from time to time.

  • Termination or Reduction of Aggregate Revolving Commitments The Borrower may, upon notice to the Administrative Agent, terminate the Aggregate Revolving Commitments, or from time to time permanently reduce the Aggregate Revolving Commitments; provided that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. three (3) Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $500,000 or any whole multiple of $500,000 in excess thereof, (iii) the Borrower shall not terminate or reduce the Aggregate Revolving Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Revolving Outstandings would exceed the Aggregate Revolving Commitments and (iv) if, after giving effect to any reduction of the Aggregate Revolving Commitments, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds the amount of the Aggregate Revolving Commitments, such sublimit shall be automatically reduced by the amount of such excess. The Administrative Agent will promptly notify the Lenders of any such notice of termination or reduction of the Aggregate Revolving Commitments. Any reduction of the Aggregate Revolving Commitments shall be applied to the Revolving Commitment of each Lender according to its Applicable Percentage. All fees accrued until the effective date of any termination of the Aggregate Revolving Commitments shall be paid on the effective date of such termination. Notwithstanding anything herein to the contrary, the Borrower may rescind any notice of termination of Aggregate Revolving Commitments under this Section 2.06 if such termination would have resulted from the refinancing of all or a portion of the Loans, which refinancing shall not be consummated or shall otherwise be delayed.