Loan Commitment Amount Reductions Sample Clauses
The "Loan Commitment Amount Reductions" clause defines the conditions and procedures under which the total amount a lender is committed to provide under a loan agreement can be decreased. Typically, this clause outlines specific events or borrower actions—such as voluntary prepayments, scheduled reductions, or failure to meet certain covenants—that trigger a reduction in the available loan commitment. For example, if a borrower pays down part of the loan early, the lender’s obligation to lend that amount in the future may be reduced accordingly. The core function of this clause is to manage and limit the lender’s ongoing exposure by ensuring the commitment amount accurately reflects the current lending relationship and any changes in the borrower’s circumstances.
Loan Commitment Amount Reductions. (i) The Borrower may, on not less than thirty (30) days’ prior written notice to DOE and upon the satisfaction of any consent requirement or other applicable provisions of this Agreement and each other Financing Document, permanently reduce the Maximum Guaranteed Loan Amount in whole or in part, but only if:
(A) the Borrower demonstrates to DOE’s satisfaction that the total funding committed and available to the Eligible Projects and Preliminary Eligible Projects with respect to which an Advance has been made is sufficient to pay all remaining Project Costs for such Eligible Projects and Preliminary Eligible Projects, as applicable;
(B) DOE is satisfied that the proposed reduction or cancellation could not reasonably be expected to cause a Default or an Event of Default;
(C) the Borrower shall have delivered to DOE by an Acceptable Delivery Method, a certificate, in form and substance satisfactory to DOE, with respect to the matters set forth in clauses (A) and (B) above; and
(D) upon such cancellation or reduction, the Borrower shall pay all expenses and other amounts then due with respect to, or as a result of, such cancellation or reduction under this Agreement.
(ii) Once reduced or canceled, the relevant portion of the Maximum Guaranteed Loan Amount may not be increased or reinstated.
(iii) Notwithstanding the foregoing, any notice of reduction of the Maximum Guaranteed Loan Amount delivered in connection with any refinancing of any Advances with the proceeds of such refinancing or of any other incurrence of Debt or the occurrence of some other identifiable event or condition, may be, if expressly so stated to be, contingent upon the consummation of such refinancing or incurrence or occurrence of such other identifiable event or condition and may be revoked by the Borrower, in each case, subject to any limitations set forth in the FFB Documents.
Loan Commitment Amount Reductions. The Borrower may, on not less than thirty (30) days’ prior written notice to DOE and upon the satisfaction of any consent requirement or other applicable provisions of this Agreement and each other Financing Document, permanently reduce the Guaranteed Loan Commitment Amount for one (1) or more Tranches, in whole or in part, but only if:
(i) the Borrower demonstrates to DOE’s satisfaction that the total funding committed and available to the Project is sufficient to pay all remaining Scheduled Pre-Completion Costs in accordance with the then-applicable Construction Budget, Project Milestone Schedule and Base Case Financial Model;
(ii) DOE is satisfied that the proposed reduction or cancellation would not reasonably be expected to cause a Default or an Event of Default;
(iii) the Borrower shall have delivered to DOE by an Acceptable Delivery Method, a certificate, in form and substance satisfactory to DOE, with respect to the matters set forth in clauses (i) and (ii) above; and
(iv) upon such cancellation or reduction, the Borrower shall pay all expenses and other amounts then due with respect to, or as a result of, such cancellation or reduction under this Agreement. Once reduced or cancelled pursuant to this Section, the Guaranteed Loan Commitment Amount may not be increased.
Loan Commitment Amount Reductions. The Borrower may, on not less than 30 days prior written notice to DOE and upon the satisfaction of any consent requirement or other applicable provisions of this Agreement and each Loan Document, permanently reduce the Loan Commitment Amount, in whole or in part, but only if:
(a) DOE is satisfied that the proposed reduction or cancellation would not cause a Default or an Event of Default;
(b) the Borrower shall have delivered to DOE, by an Acceptable Delivery Method, a certificate, in form and substance satisfactory to DOE, with respect to the matters set forth in clause (a) above; and
(c) to the extent permitted by applicable Law, upon such cancellation or reduction, the Borrower shall pay all expenses and other amounts then due with respect to such cancellation or reduction under this Agreement. Once reduced or canceled, the Loan Commitment Amount may not be increased.
Loan Commitment Amount Reductions. The Borrower may, on not less than 30 days’ prior written notice to DOE, permanently reduce the Loan Commitment Amount, in whole or in part, but only if:
(a) the Borrower demonstrates to DOE’s satisfaction that the total funding available to the Project is sufficient to pay all remaining Total Project Costs in accordance with the then-applicable Construction Budget and Project Execution Plan;
(b) DOE is satisfied that the proposed reduction or cancellation would not cause a Default or an Event of Default;
(c) the Borrower shall have delivered to DOE by an Acceptable Delivery Method, a certificate, in form and substance satisfactory to DOE, with respect to the matters set forth in clauses (a) and (b) above; and, if applicable as determined by DOE, amendments to the Notes, Building Loan Agreement (including, without limitation, the Section 22 Affidavit) and the Mortgage encumbering the Project Site, in each case in form and substance acceptable to DOE, to reflect such cancellation or reduction;
(d) upon such cancellation or reduction, the Borrower shall pay all expenses and other amounts then due with respect to such cancellation or reduction under this Agreement; and
(e) once reduced or canceled, the Loan Commitment Amount may not be increased.
Loan Commitment Amount Reductions. The Borrower may, on not less than thirty (30) days' prior written notice to DOE and upon the satisfaction of any consent requirement or other applicable provisions of this Agreement and each other Financing Document, permanently reduce the Loan Commitment Amount for one (1) or more Tranches, in whole or in part, but only if:
(i) the Borrower demonstrates to DOE's satisfaction that the total funding committed and available to the Project is sufficient to pay all remaining Project Costs in accordance with the then-applicable Construction Budget, Project Milestone Schedule and Base Case Financial Model;
(ii) DOE is satisfied that the proposed reduction or cancellation would not reasonably be expected to cause a Default or an Event of Default;
Loan Commitment Amount Reductions. The Borrower may, on not less than [*****] prior written notice to the Guarantor and upon the satisfaction of any consent requirement or other applicable provisions of this Agreement and each other Financing Document, permanently reduce the Loan Commitment Amount, in whole or in part, but only if:
(i) the Borrower demonstrates to the Guarantor’s satisfaction that each Reserve Account and the Qualified Stall Asset Acquisition Account is funded in an amount equal to or greater than the applicable Account Funding Requirement;
(ii) the Guarantor is satisfied that the proposed reduction or cancellation would not cause or be reasonably expected to cause a Default or an Event of Default;
(iii) the Borrower shall have delivered to the Guarantor by an Acceptable Delivery Method, a certificate, in form and substance satisfactory to the Guarantor, with respect to the matters set forth in Sections 2.02(b)(i) and (ii); and
(iv) upon such cancellation or reduction, the Borrower shall pay all expenses and other amounts then due with respect to, or as a result of, such cancellation or reduction under this Agreement.