Automatic reduction and cancellation Clause Samples

Automatic reduction and cancellation. (a) The obligation of a Lender to advance the undrawn amount of its Commitment will be automatically cancelled at the close of business on the last day of the Availability Period. (b) Commencing on the date falling five years and three months from the Amendment Date, the Total Commitments of the Lenders shall automatically reduce by eight consecutive quarterly reductions, each of 2.5% of the Maximum Facility Amount, being US$32,500,000. (c) In the event that the Extension Option is exercised, then in addition to the Commitment reductions set out in paragraph (b) above, then commencing on the date falling seven years after the Amendment Date, the Total Commitments shall reduce by four consecutive quarterly reductions, each of 5.0% of the Maximum Facility Amount, being US$65,000,000. (d) Each Commitment reduction under this Clause 6.7 shall be applied against the Commitments of the Lenders pro rata. The specified amounts shall be reduced by any prior cancellation made under Clause 6.1 (Mandatory prepayment – illegality) or voluntary cancellation under Clause 6.9 (Voluntary cancellation) and Clause 6.10 (Voluntary prepayment and cancellation).