Monthly Reduction Amount Sample Clauses
The "Monthly Reduction Amount" clause defines the specific sum by which a payment, obligation, or balance is decreased each month under an agreement. Typically, this clause outlines the schedule and method for reducing a principal amount, such as a loan balance or a recurring fee, on a monthly basis. For example, it may state that a tenant’s security deposit is reduced by a set amount each month as rent is paid. The core practical function of this clause is to provide a clear, predictable mechanism for gradually decreasing a financial obligation over time, ensuring both parties understand how and when reductions will occur.
Monthly Reduction Amount. If any reduction of the amount of the Borrowing Base by operation of the Monthly Reduction Amount in accordance with Section 2.08 results in a Borrowing Base Deficiency, then Borrower shall immediately prepay the Loans in an aggregate principal amount equal to such Borrowing Base Deficiency, together with interest on the principal amount paid accrued to the date of such prepayment. If, because of LC Exposure, a Borrowing Base Deficiency remains after prepaying all of the Loans, Borrower shall pay to Agent on behalf of the Lenders an amount equal to such remaining Borrowing Base Deficiency to be held as cash collateral as provided in Section 2.10(b).
Monthly Reduction Amount. Effective as of the Third Amendment Effective Date, the Monthly Reduction Amount is hereby set as follows for each Monthly Reduction Date: Monthly Reduction Date Monthly Reduction Amount February 28, 2020 $ 1,000,000 March 31, 2020 $ 1,000,000 April 30, 2020 $ 2,000,000 May 1, 2020 $ 2,000,000 The Monthly Reduction Amount as established herein will remain in effect until the date of the next redetermination of the Monthly Reduction Amount under Section 2.9(b) of the Credit Agreement, unless otherwise adjusted pursuant to the provisions of Section 2.9 of the Credit Agreement.
Monthly Reduction Amount. If any reduction of the amount of the Borrowing Base by operation of the Monthly Reduction Amount in accordance with Section 2.08 results in a Borrowing Base Deficiency, then the Borrower shall immediately upon receipt of written notice thereof prepay the Loans in an aggregate principal amount equal to such Borrowing Base Deficiency, together with interest on the principal amount paid accrued to the date of such prepayment. If, because of LC Exposure, a Borrowing Base Deficiency remains after prepaying all of the Loans, the Borrower shall pay to the Administrative Agent on behalf of the Lenders an amount equal to such remaining Borrowing Base Deficiency to be held as cash collateral as provided in Section 2.10(b).