Common use of Mandatory Repurchase Clause in Contracts

Mandatory Repurchase. On the first Payment Date following the Termination Date when the Borrowing Base is less than 15% of the Borrowing Base as of the Termination Date, the Seller shall notify the Administrative Agent in writing of its intention to purchase all remaining Collateral. On the Payment Date next succeeding any such notice, the Seller shall (i) terminate all Hedge Transactions in accordance with their terms and (ii) purchase all remaining Collateral for a price equal to the Aggregate Unpaids and the proceeds of such purchase will be deposited into the Collection Account and paid in accordance with Section 2.10.