Prepaid Borrowings Clause Samples
The Prepaid Borrowings clause defines the terms under which a borrower can repay a loan or a portion of it before the scheduled due date. Typically, this clause outlines any conditions, notice requirements, or fees associated with making early payments, and may specify whether such prepayments reduce future payment obligations or principal balance. Its core practical function is to provide flexibility for borrowers to manage their debt more efficiently while protecting the lender from potential financial disadvantages caused by early repayment.
Prepaid Borrowings prepaid or otherwise reduced Borrowings outstanding to each Lender in an amount equal to the amount by which Borrowings outstanding to such Lender would otherwise be in excess of its Applicable Percentage of the Total Syndicated Facility Commitment or the Operating Facility Commitment, as applicable, immediately after the reduction of the Commitments provided for in such notice; and