Obligation to Prepay Installments Clause Samples
The Obligation to Prepay Installments clause requires a party, typically a borrower, to pay certain amounts of an outstanding debt before the originally scheduled due dates. This clause may be triggered by specific events such as the receipt of excess cash flow, asset sales, or breaches of agreement terms, and it often outlines the timing and calculation of such prepayments. Its core practical function is to protect the lender by accelerating repayment in situations that may increase risk, thereby reducing potential losses and ensuring the loan is repaid more quickly under certain conditions.
Obligation to Prepay Installments. The Company shall have the obligation to prepay installments payable hereunder in whole (or in the case of the event stated in (b) of this Section 7.1 in whole or in part), if any of the following shall have occurred:
(a) As a result of any changes in the Constitution of the State or the Constitution of the United States of America or by legislative or administrative action (whether state or federal) or by final decree, judgment or order of any court or administrative body (whether state or federal) this Agreement shall have become void or unenforceable or impossible of performance in accordance with the intent and purposes of the parties as expressed in this Agreement; or
(b) Proceeds of the Bonds, including income from the investment thereof, shall remain after completion of the Project and the payment of the Cost of the Project. In case of the event stated in Section 7.1(b) hereof, the Company agrees it will fulfill its obligation and prepay within 180 days after the Company has notice or actual knowledge of such event.
Obligation to Prepay Installments. The Borrower shall have the obligation to prepay installments payable hereunder in whole (or in the case of an event stated in (b) or (c) of this Section 7.1 in whole or in part, as provided in the Indenture), if any of the following shall have occurred:
(a) As a result of any changes in the Constitution of Florida or the Constitution of the United States of America or of legislative or administrative action (whether state or federal) or by final decree, judgment or order of any court or administrative body (whether state or federal) this Agreement shall have become void or unenforceable or impossible of performance in accordance with the intent and purposes of the parties as expressed in this Agreement;
(b) In the event of a Determination of Taxability with respect to the Bonds which is the result of an Event of Taxability, all of the Bonds then Outstanding are subject to redemption and payment on a redemption date established by the Issuer at a redemption price equal to three percent (3%) of the par value of the principal amount thereof.
(c) In the event of a Determination of Taxability which is the result of a Change in Law, the Bonds then Outstanding are subject to redemption and payment on a redemption date established by the Trustee at a redemption price equal to 100% of the par value of the principal amount of the Bonds to be redeemed.
Obligation to Prepay Installments. The Borrower shall have the obligation to prepay installments payable hereunder in whole (or in the case of the events stated in (b) or (c) of this Section 7.1 in whole or in part), if any of the following shall have occurred:
(a) As a result of any changes in the Constitution of the State or the Constitution of the United States of America or by legislative or administrative action (whether state or federal) or by final decree, judgment or order of any court or administrative body (whether state or federal) this Agreement shall have become void or unenforceable or impossible of performance in accordance with the intent and purposes of the parties as expressed in this Agreement; or
(b) A Determination of Taxability shall have occurred; or
(c) Proceeds of the Bonds, including income from the investment thereof, shall remain after completion of the Projects and the payment of the Cost of the Projects. In case of any of the events stated in this Section 7.1, the Borrower agrees it will fulfill its obligation and prepay within 180 days (or 90 days in the case of (c) of this Section) after the Borrower has notice or actual knowledge of such event (which in the case of (c) of this Section shall be deemed to occur on the date of the filing of the completion certificate in accordance with Section 3.9 hereof).
Obligation to Prepay Installments. The Company shall have the obligation to prepay installments payable hereunder in whole (or in the case of the events stated in (b) or (c) of this Section 7.1 in whole or in part), if any of the following shall have occurred:
(a) As a result of any changes in the Constitution of the State or the Constitution of the United States of America or by legislative or administrative action (whether state or federal) or by final decree, judgment or order of any court or administrative body (whether state or federal) this Agreement shall have become void or unenforceable or impossible of performance in accordance with the intent and purposes of the parties as expressed in this Agreement; or
(b) A final determination by the Internal Revenue Service or a court of competent jurisdiction as a result of a proceeding in which the Company participates to the degree it deems sufficient, which determination the Company, in its discretion, does not contest by an appropriate proceeding, that, as a result of failure by the Company to observe any covenant, agreement or representation by the Company in this Agreement, the interest payable on the Bonds or any of them is includable for federal income tax purposes in the gross income of any owner of a Bond (other than an owner who is a "substantial user" of the Project or a "related person" within the meaning of Section 147 of the Code and the applicable regulations thereunder); or
(c) Proceeds of the Bonds, including income from the investment thereof, shall remain after completion of the Project and the payment of the Cost of the Project. In case of any of the events stated in this Section 7.1, the Company agrees it will fulfill its obligation and prepay within 180 days (or 90 days in the case of (c) of this Section) after the Company has notice or actual knowledge of such event (which in the case of (c) of this Section shall be deemed to occur on the date of the filing of the completion certificate in accordance with Section 3.4 hereof).