Corresponding Reductions Clause Samples
The 'Corresponding Reductions' clause defines how adjustments are made to obligations, payments, or quantities under a contract when certain events occur that affect the original terms. For example, if a party is unable to deliver the full amount of goods or services due to unforeseen circumstances, this clause specifies how the other party's obligations or payments are proportionally reduced to reflect the shortfall. Its core practical function is to ensure fairness and balance in contractual relationships by automatically adjusting the parties' responsibilities, thereby preventing disputes over partial performance or non-delivery.
Corresponding Reductions. Any reduction of the Commitment Amount which reduces the Commitment Amount below the then current amount of the Letter of Credit Commitment Amount or the Loan Commitment Amount, as the case may be, shall result in an automatic and corresponding reduction of the Letter of Credit Commitment Amount or the Loan Commitment Amount, as the case may be, to the amount of the Commitment Amount, as so reduced, without any further action on the part of the Administrative Agent, the Lenders or otherwise.
Corresponding Reductions. Each partial permanent reduction permitted or required pursuant to this Section 2.7 shall (i) permanently reduce the Lenders' Commitments pro rata in accordance with their respective Commitment Percentages and (ii) permanently reduce the Alternative Currency Commitment pro rata in accordance with the relative amount of the Alternative Currency Commitment and the Aggregate Commitment.
Corresponding Reductions. Any reduction of the Commitment Amount which reduces the Commitment Amount below the then current amount of the Enhancement Letters of Credit Commitment Amount, the Loan Commitment Amount or the Foreign Currency Loan Commitment Amount, as the case may be, shall result in an automatic and corresponding reduction of the Enhancement Letters of Credit Commitment Amount, the Loan Commitment Amount or the Foreign Currency Commitment Amount, as the case may be, to the amount of the Commitment Amount, as so reduced, without any further action on the part of the Administrative Agent, the Lenders or otherwise.