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A program or script which is executed when the link
is no longer available for sending and receiving IP
packets. This script can be used for undoing the
"when the link is no longer available for sending and receiving" seems
clear enough - the script is executed whenever the link goes down,
regardless of whether pppd exits or not.
I've had a quick look through the source for ppp-2.3.11 and it looks
like it does indeed run the script each time the link goes down.