Changes to Certain Concentration Limitations Clause Samples

Changes to Certain Concentration Limitations. (a) The Services Provider, on behalf of the Borrower, may, by written notice to the Administrative Agent and the Collateral Agent, elect to change the Concentration Limitation with respect to either or both of the CCC Collateral Loans and Discount Loans to either of the two options as set forth in such definition with respect to such loans at any time. The initial elections as of the Closing Date are 20% for CCC Collateral Loans and 15.0% for Discount Loans (each, an “Initial Election”). Upon subsequent elections to increase the Concentration Limitation with respect to either or both of the CCC Collateral Loans and Discount Loans to either of the two options as set forth in such definition, a Senior Advance Rate Trigger Event shall automatically occur and be deemed continuing until such time as the Services Provider, on behalf of the Borrower, by written notice to the Administrative Agent and the Collateral Agent, elects (in its sole discretion) to reduce the Concentration Limitation with respect to the CCC Collateral Loans and/or the Discount Loans, as applicable, to the Initial Elections. (b) In connection with any such election to increase or reduce either or both of such Concentration Limitations, such increase or reduction shall become effective only if the following conditions are satisfied, as certified by the Services Provider to the Administrative Agent and the Collateral Agent: (i) each of the Senior Advance Rate Test and each Coverage Test is satisfied on a pro forma basis giving effect to such election and (ii) no Default has occurred and is continuing. For the avoidance of doubt, in the case of an increase or reduction in respect of the Concentration Limitation relating to CCC Collateral Loans, the percentage in the definition of “CCC Excess” shall automatically change to reflect the corresponding Concentration Limitation then elected. Each change in connection with any such election shall become effective on the Business Day following receipt by the Administrative Agent and the Collateral Agent of such certification.