Common use of Reduction and Termination Clause in Contracts

Reduction and Termination. (a) Subject to the terms and provisions set forth in the Fee Letter, the Stated Amount of the Letter of Credit shall be reduced from time to time or permanently terminated, as provided herein, as requested by the City on the date specified in the certificate delivered by the Issuing and Paying Agent to the Bank, requesting such reduction or termination, provided that (i) each such reduction shall be in an amount equal to at least $1,000,000 and integral multiples of $1,000,000 in excess thereof, (ii) the Stated Amount of the Letter of Credit shall not be reduced to an amount less than the aggregate principal amount of the then Outstanding Covered Notes and interest due thereon at maturity, if any, and (iii) any reduction or termination in the Stated Amount of a Letter of Credit shall not be effective until the Bank, has received from the Issuing and Paying Agent a notice in the form attached to the Letter of Credit as Annex B reflecting such reduction or termination. (b) The City hereby agrees to pay the Termination Fee and/or the Reduction Fee set forth in the Fee Letter, as applicable.

Reduction and Termination. (a) Subject to the terms and provisions set forth in the Fee Letter, the Stated Amount of the Letter of Credit shall be reduced from time to time or permanently terminated, as provided herein, as requested by the City on the date specified in the certificate delivered by the Issuing and Paying Agent to the Bank, requesting such reduction or termination, provided that (i) each such reduction shall be in an amount equal to at least $1,000,000 and integral multiples of $1,000,000 in excess thereof, (ii) the Stated Amount of the Letter of Credit shall not be reduced to an amount less than the aggregate principal amount of the then Outstanding Covered Notes and interest due thereon at maturity, if any, and (iii) any reduction or termination in the Stated Amount of a Letter of Credit shall not be effective until the Bank, Bank has received from the Issuing and Paying Agent a notice in the form attached to the Letter of Credit as Annex B reflecting such reduction or termination. (b) The City hereby agrees to pay the Termination Fee and/or the Reduction Fee set forth in the Fee Letter, as applicable.