Mandatory Prepayment Upon Changes In Law Sample Clauses
The "Mandatory Prepayment Upon Changes In Law" clause requires a borrower to repay a loan, either partially or in full, if changes in applicable laws or regulations make the loan or its terms illegal, impractical, or significantly more costly for the lender. For example, if new banking regulations prohibit certain types of lending or impose additional taxes or capital requirements, the borrower must prepay the affected portion of the loan. This clause protects lenders from unforeseen legal or regulatory changes that could negatively impact the enforceability or profitability of the loan, ensuring they are not forced to continue under unfavorable or unlawful conditions.
Mandatory Prepayment Upon Changes In Law. If there shall be any change in any applicable law or regulation, or the interpretation thereof by any judicial or regulatory authority, which, in the determination of the Bank, makes it unlawful for any Lender to make or maintain LIBOR Rate Loans, the Bank shall so advise the Company and thereupon (i) the Lenders shall be deemed to have made, as of the date of such notice, Base Rate Loans to the Company in an amount equal to the aggregate amount of the outstanding LIBOR Rate Loans, and (ii) the proceeds of said Base Rate Loans shall be deemed to have been applied to the prepayment in full of such outstanding LIBOR Rate Loans.