Common use of Mandatory Prepayments of Principal Clause in Contracts

Mandatory Prepayments of Principal. At any time that the outstanding principal balance of the Revolving Loan exceeds the Maximum Availability, the Company shall, immediately and without notice or demand of any kind, repay that portion of the unpaid principal balance of the Revolving Loan which is in excess of the Maximum Availability. If an Event of Default or an Unmatured Event of Default has occurred and is continuing and FHI shall have notified the Company of the election of FHI to take any action specified in Section 7.02 of this Agreement, the Maximum Availability shall be automatically reduced to zero (0) dollars without any action on the part of or the giving of any additional notice to the Company by FHI.

Mandatory Prepayments of Principal. At any time that the outstanding principal balance of the Revolving Loan exceeds the Maximum Availability, the Company shall, immediately and without notice or demand of any kind, repay that portion of the unpaid principal balance of the Revolving Loan which is in excess of the Maximum Availability. If an Event of Default or an Unmatured Event of Default has occurred and is continuing and FHI the Bank shall have notified the Company of the election of FHI the Bank to take any action specified in Section 7.02 of this Agreement, the Maximum Availability shall be automatically reduced to zero (0) dollars without any action on the part of or the giving of any additional notice to the Company by FHIthe Bank.