Mandatory Prepayments, Etc Sample Clauses
The "Mandatory Prepayments, Etc" clause requires a borrower to make early repayments on a loan under certain specified circumstances, such as receiving excess cash flow, proceeds from asset sales, or insurance recoveries. In practice, this means that if the borrower comes into additional funds outside of normal operations, a portion or all of those funds must be used to pay down the outstanding loan balance ahead of schedule. This clause serves to protect the lender by reducing credit risk and ensuring that unexpected inflows are used to strengthen the borrower's financial position, rather than being diverted elsewhere.
Mandatory Prepayments, Etc. (i) If at any time the aggregate principal amount of Obligations hereunder shall exceed the lesser of (A) the Aggregate Revolving Committed Amount or (B) until the Security Release Date relating to inventory (but not thereafter), the Borrowing Base, the Borrower shall immediately make payment on the Revolving Loans hereunder in an amount sufficient to eliminate the deficiency.
(ii) If at any time the Aggregate Revolving Committed Amount under the Existing Credit Agreement shall exceed the Obligations owing thereunder (that is, there is unused availability under the Existing Credit Agreement determined for purposes hereof without giving effect to any voluntary, optional or mandatory reduction in the Aggregate Revolving Committed Amount thereunder in effect on the Closing Date hereof, being $500,000,000), the Borrower shall immediately either (A) make payment on the Revolving Loans hereunder in an amount sufficient to reduce the Obligations outstanding hereunder to zero or (B) reborrow Revolving Loans (or have Letters of Credit issued) under the Existing Credit Agreement in an amount sufficient to eliminate such excess.
(iii) The Borrower will make prepayment on the Revolving Loans hereunder in an amount equal to one hundred percent (100%) of the Net Proceeds received from any Securitization Transaction (including for purposes hereof any increase in aggregate Invested Amount relating to the Excluded Securitization Transaction above $285,000,000).
Mandatory Prepayments, Etc. The Borrower shall make the following mandatory payments in the amounts and at the times set out below, in each case, except as otherwise provided in Section 3.03(b), without any commission, premium or penalty:
Mandatory Prepayments, Etc