Common use of Mandatory Repayment of Excess Loans Clause in Contracts

Mandatory Repayment of Excess Loans. If at any time the outstanding principal amount of all Loans exceeds the lesser of the Aggregate Commitment or the Borrowing Base less the sum of all outstanding L/C Obligations (the amount of such excess being here called a “Borrowing Base Deficiency”), the Borrowers shall immediately repay to the Agent for the account of the Lenders, an amount equal to such excess, with each such repayment applied first to the principal amount of outstanding Loans, and second to provide cash collateral for the outstanding balance of the L/C Obligations; provided, however, that if such Borrowing Base Deficiency results from the imposition by the Lenders of new criteria for the determination of Eligible Accounts or Eligible Inventory or new reserves, as provided in this Agreement, the Borrowers shall have a period of fifteen (15) days from the date of such Borrowing Base Deficiency to make such payment. Such cash collateral shall be applied in accordance with Section 11.2(b). Each such repayment shall be accompanied by any amount required to be paid pursuant to Section 4.9 hereof.