Additional Prepayment Payments Clause Samples
The "Additional Prepayment Payments" clause defines the borrower's obligation to make extra payments beyond the regular scheduled payments if they choose to prepay part or all of a loan before its maturity. Typically, this clause outlines the conditions under which such prepayments can be made, any associated fees or penalties, and how these payments are applied to the outstanding balance. Its core function is to compensate the lender for potential lost interest or administrative costs resulting from early repayment, thereby protecting the lender's financial interests while allowing the borrower some flexibility in managing their debt.
Additional Prepayment Payments. The prepaying Borrower shall, on the date of the prepayment of any Eurodollar Rate Committed Advances, pay to the Agent for the account of each Lender interest accrued to such date of prepayment on the principal amount prepaid plus, in the case only of a prepayment on any date which is not the last day of an applicable Eurodollar Interest Period, any amounts which may be required to compensate such Lender for any losses or out-of-pocket costs or expenses (including any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds, but excluding loss of anticipated profits) incurred by such Lender as a result of such prepayment, provided that such Lender shall exercise reasonable efforts to minimize any such losses, costs and expenses.
Additional Prepayment Payments. The Company shall, on the date of the prepayment of any Eurodollar Rate Advances, pay to the Agent for the account of each Lender interest accrued to such date of prepayment on the principal amount prepaid plus, in the case only of a prepayment on any date which is not the last day of an applicable Eurodollar Interest Period, any amounts which may be required to compensate such Lender for any losses or out-of-pocket costs or expenses (including any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds, but excluding loss of anticipated profits) incurred by such Lender as a result of such prepayment, provided that such Lender shall exercise reasonable efforts to minimize any such losses, costs and expenses.