Common use of Cancellation and suspension Clause in Contracts

Cancellation and suspension. 1.6.A Xxxxxxxx’x right to cancel 1.6.B Bank’s right to suspend and cancel (a) The Bank may, by notice in writing to the Borrower, suspend and/or cancel the undisbursed portion of the Credit in whole or in part at any time and with immediate effect: (i) upon the occurrence of a Prepayment Event or an Event of Default or an event or circumstance which would with the passage of time or giving of notice under this Contract constitute a Prepayment Event or an Event of Default; or (ii) if a Material Adverse Change occurs. (b) Any suspension shall continue until the Bank ends the suspension or cancels the suspended amount. 1.6.C(1) SUSPENSION If the Bank suspends a Notified Tranche, whether upon an Indemnifiable Prepayment Event or an Event of Default or upon the occurrence of a Material Adverse Change, the Borrower shall pay to the Bank the Deferment Indemnity calculated on the amount of disbursement suspended.