Optional Prepayments—No Call Clause Samples
The "Optional Prepayments—No Call" clause allows a borrower to make voluntary prepayments on a loan, but restricts or prohibits the lender from calling the loan for early repayment. In practice, this means the borrower can choose to pay off part or all of the outstanding loan balance ahead of schedule without penalty, while the lender cannot demand early repayment before the agreed maturity date. This clause provides flexibility for the borrower to manage debt while protecting them from the risk of sudden loan acceleration by the lender.
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Optional Prepayments—No Call. The Issuer shall not have the right to prepay at any time all or any portion of the Notes. In the event the Issuer elects to so prepay the Notes in breach of this Section 3.01(b), in addition to the Called Principal Amount of the Notes being prepaid by the Issuer, the Issuer shall pay the Make-Whole Amount, together with all accrued and unpaid interest on the Called Principal Amount and all other amounts owing under the Credit Documents to the holder of the Note as of the date of prepayment. Nothing in this Section 3.01(b) shall be construed as permitting the Issuer to prepay the Notes and any prepayment not expressly permitted by this Agreement shall be deemed a breach of this Agreement by the Issuer.