Common use of Reductions and Cancellations Clause in Contracts

Reductions and Cancellations. Borrower may, upon three (3) Banking Days’ written notice to Administrative Agent, permanently reduce, by the amount of Five Hundred Thousand Dollars ($500,000) or an integral multiple of One Hundred Thousand Dollars ($100,000) in excess thereof or such other amount agreed to by Administrative Agent or cancel in its entirety, the Total Construction Loan Commitment or the Total Equity Bridge Loan Commitment; provided, however, that (i) Borrower may not reduce or cancel the Total Construction Loan Commitment or the Total Equity Bridge Loan Commitment if, after giving effect to such reduction or cancellation, (A) the aggregate principal amount of all Construction Loans or Equity Bridge Loans, as the case may be, then outstanding would exceed the Total Construction Loan Commitment or the Total Equity Bridge Loan Commitment, as the case may be, or (B) the Available Construction Funds would not, in Administrative Agent’s reasonable judgment in consultation with the Independent Engineer, be sufficient to achieve Final Completion and (ii) Borrower shall pay to Administrative Agent all Commitment Fees then due upon any reduction or cancellation. From the effective date of any such reduction or cancellation, the Commitment Fees shall be computed on the basis of the Total Construction Loan Commitment and/or the Total Equity Bridge Loan Commitment as so reduced. Once reduced or canceled, the Total Construction Loan Commitment and the Total Equity Bridge Loan Commitment may not be increased or reinstated. Any reductions pursuant to this Section 2.5(c) shall be applied ratably to each Lender’s respective Commitments in accordance with Section 2.7(g).

Reductions and Cancellations. Borrower may, upon three (3) Banking Days’ written notice to Administrative Agent, permanently reduce, by the amount of Five Hundred Thousand Dollars ($500,000) or an integral multiple of One Hundred Thousand Dollars ($100,000) in excess thereof or such other amount agreed to by Administrative Agent or cancel in its entirety, the Total Construction Loan Commitment or the Total Equity Bridge Loan Commitment; provided, however, that (i) Borrower may not reduce or cancel the Total Construction Loan Commitment or the Total Equity Bridge Loan Commitment if, after giving effect to such reduction or cancellation, (A) the aggregate principal amount of all Construction Loans or Equity Bridge Loans, as the case may be, then outstanding would exceed the Total Construction Loan Commitment or the Total Equity Bridge Loan Commitment, as the case may be, or (B) the Available Construction Funds would not, in Administrative Agent’s reasonable judgment in consultation with the Independent Engineer, could not reasonably be expected to be sufficient to achieve Final Completion and (ii) Borrower shall pay to Administrative Agent all Commitment Fees then due upon any reduction or cancellation. From the effective date of any such reduction or cancellation, the Commitment Fees shall be computed on the basis of the Total Construction Loan Commitment and/or the Total Equity Bridge Loan Commitment as so reduced. Once reduced or canceled, the Total Construction Loan Commitment and the Total Equity Bridge Loan Commitment may not be increased or reinstated. Any reductions pursuant to this Section 2.5(c) shall be applied ratably to each Lender’s respective Commitments in accordance with Section 2.7(g2.7(f).