Mandatory Prepayments(a) Clause Samples
The 'Mandatory Prepayments(a)' clause requires a borrower to make early repayments of a loan under specific circumstances outlined in the agreement. Typically, this clause is triggered by events such as asset sales, receipt of insurance proceeds, or excess cash flow, obligating the borrower to use these funds to pay down outstanding debt. Its core function is to protect the lender by ensuring that unexpected inflows or significant changes in the borrower's financial situation are used to reduce credit risk and maintain the lender's security.
Mandatory Prepayments(a). If at any time (a) the Total Exposure exceeds the Facility Cap or (b) the Revolving Credit Exposure exceeds the Total Revolving Commitment, then the Borrower shall, within ten (10) Business Days after receipt of notice from Agent of such occurrence, (i) to the extent Total Exposure exceeds the Facility Cap due to the Total Exposure being greater than the Total Commitment, repay the Loans in an aggregate principal amount at least equal to such excess to the Agent for the respective accounts of the Lenders, and (ii) to the extent the Total Exposure exceeds the Facility Cap due to the Unencumbered Pool Value being less than the Total Exposure, either, in Borrower’s discretion, (A) add additional Eligible Real Estate to the Unencumbered Pool with an aggregate value sufficient to cause the Facility Cap to exceed the Total Exposure, or (B) repay the Loans in an aggregate principal amount at least equal to such excess to the Agent for the respective accounts of the Lenders, and (iii) to the extent that the Revolving Credit Exposure exceeds the Total Revolving Commitment, repay Loans of the applicable Class in an aggregate principal amount at least equal to such excess to the Agent for the respective accounts of the Revolving Credit Lenders, as applicable, for application to the Revolving Credit Loans as provided in §3.4 or held, to the extent the Revolving Credit Loans are repaid in full, as Cash Collateral for the Letter of Credit Liabilities, together with any additional amounts payable pursuant to §4.8.
Mandatory Prepayments(a). If any Indebtedness shall be issued or incurred by any Group Member (excluding any Indebtedness incurred in accordance with Section 7.2), an amount equal to 100% of the Net Cash Proceeds thereof shall be applied on the date of such issuance or incurrence, or in the event such Net Cash Proceeds are received after 12:00 Noon, New York City time, on the next Business Day, toward the prepayment of the Term Loans as set forth in Section 2.11(c).
Mandatory Prepayments(a). If at any time the Total Exposure exceeds the Facility Cap, then the Borrower shall, within ten (10) Business Days after receipt of notice from Agent of such occurrence, (i) to the extent Total Exposure exceeds the Facility Cap due to the Total Exposure being greater than the Total Commitment, repay the Loans in an aggregate principal amount at least equal to such excess to the Agent for the respective accounts of the Lenders, and (ii) to the extent the Total Exposure exceeds the Facility Cap due to the Unencumbered Pool Value being less than the Total Exposure, either, in Borrower’s discretion, (A) add additional Eligible Real Estate to the Unencumbered Pool with an aggregate value sufficient to cause the Facility Cap to exceed the Total Exposure, or (B) repay the Loans in an aggregate principal amount at least equal to such excess to the Agent for the respective accounts of the Lenders.
Mandatory Prepayments(a). (a) If at any time the aggregate outstanding Revolving Extensions of Credit of all Lenders exceed the lesser of (i) the amount certified by the Borrower, in the Borrowing Base Certificate then most recently delivered to the Administrative Agent, as constituting the amount of the Borrowing Base (adjusted to give effect to any changes in Reserves that thereafter became effective) and (ii) the aggregate Revolving Commitments then in effect, the Borrower shall immediately, without notice or demand, prepay outstanding Loans (or, after the Loans have been repaid, deposit Dollars to a Cash Collateral Account) in an amount equal to such excess.
(b) As, when, to the extent and for as long as set forth in Section 6.13(f), the Administrative Agent will have the unconditional right (but not the duty) to cause deposits received in the Collection Account to be applied to the payment of the principal of or interest on outstanding Loans or Reimbursement Obligations or other Obligations then payable or to fund deposits to a Cash Collateral Account not exceeding the aggregate outstanding L/C Obligations. When so applied to outstanding Loans, such payment shall constitute a mandatory prepayment thereof.
(c) Mandatory prepayments of Loans shall be applied first to Base Rate Loans and then to Eurodollar Loans.
Mandatory Prepayments(a). (a) (i) If on any date prior to the BofA Loan Termination Date, any Group Member shall receive Second Lien Net Cash Proceeds from any Asset Sale, (x) 331/3% of such Second Lien Net Cash Proceeds from such Asset Sale shall be applied on such date toward the prepayment of the Aggregate Principal Amount Outstanding, (y) 331/3% of such Second Lien Net Cash Proceeds shall be retained by the Borrower for general corporate purposes and (z) 331/3% shall be deposited into the Cash Collateral Account. If on any date after the BofA Loan Termination Date any Group Member shall receive Net Cash Proceeds from any Asset Sale, 100% of such Net Cash Proceeds shall be applied on such date toward the prepayment of the Aggregate Principal Amount Outstanding.