Common use of Right of prepayment and cancellation Clause in Contracts

Right of prepayment and cancellation. If any Borrower is required to pay or is notified by any Bank in writing that it will be required to pay any amount to a Bank under Clause 12 (Taxes) or Clause 15 (Increased Costs), or if circumstances exist such that a Borrower will be required to pay any amount to a Bank under Clause 12 (Taxes), the Parent may, whilst the circumstances giving rise or which will give rise to the requirement continue, serve a notice of prepayment and cancellation on that Bank through the Agent. On the date falling three Business Days after the date of service of the notice: (a) each Borrower shall prepay all outstanding Advances made to it by that Bank; (b) each Borrower shall perform its obligations under Clause 8.3 (Payment of Bills) in respect of all outstanding Bills accepted by that Bank as if such third Business Day were the Maturity Date of each of those Bills; and (c) the Bank's Tranche A Commitment, and its Tranche B Commitment (including its Swingline Commitment (if any)) shall be permanently cancelled on the date of service of the notice. -------------------------------------------------------------------------------- --------------------------------------------------------------------------------