Reduction or Termination of the Maximum Commitment Clause Samples
The 'Reduction or Termination of the Maximum Commitment' clause defines the conditions under which a lender's maximum commitment to provide funds under a credit facility can be decreased or ended. Typically, this clause allows the borrower to voluntarily reduce the unused portion of the commitment or to terminate it entirely, often by providing advance written notice to the lender. Its core practical function is to give the borrower flexibility to manage borrowing costs and obligations by reducing unnecessary credit availability, while also protecting the lender by specifying the process and any applicable fees or conditions for such reductions or terminations.
Reduction or Termination of the Maximum Commitment. (a) Automatic Reduction. Promptly following each date on which the ------------------- Required Amount is reduced as a result of a reduction in the Pool Balance of the Class B Certificates or otherwise, the Maximum Commitment shall automatically be reduced to an amount equal to such reduced Required Amount (as calculated by the Borrower). The Borrower shall give notice of any such automatic reduction of the Maximum Commitment to the Liquidity Provider within two Business Days thereof. The failure by the Borrower to furnish any such notice shall not affect such automatic reduction of the Maximum Commitment.
Reduction or Termination of the Maximum Commitment