Acknowledgement of Default Clause Samples
The Acknowledgement of Default clause formally recognizes that a party has failed to meet its contractual obligations, typically by missing payments or breaching specific terms. In practice, this clause may require the defaulting party to admit in writing that a default has occurred, which can then trigger certain remedies or enforcement actions by the non-defaulting party, such as acceleration of payments or termination of the agreement. Its core function is to create a clear, documented basis for the enforcement of contractual rights following a default, reducing disputes over whether a default has occurred and streamlining the process for addressing breaches.
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Acknowledgement of Default. The Borrower acknowledges and agrees that the Specified Defaults constitute a Default and an Event of Default under the Loan Agreement. The Borrower also acknowledges and agrees that the Agent and the Lenders may (other than during the Waiver Period referred to below), if they so elect, proceed further to enforce their rights and remedies under the Financing Documents to collect the Borrower's indebtedness to the Agent and the Lenders under, and the other Obligations evidenced by, the Financing Documents. The Borrower also acknowledges and agrees that, as a result of the Specified Defaults, the Lenders and the Agent are under no obligation (other than during the Waiver Period referred to below) to advance additional funds to, or otherwise extend credit on behalf of, the Borrower pursuant to the Loan Agreement. The Borrower agrees that the Obligations of the Borrower to the Agent and the Lenders as evidenced by or otherwise arising under the Loan Agreement and the other Financing Documents, except as otherwise expressly modified in this Amendment upon the terms set forth herein, are, by the Borrower's execution of this Amendment, ratified and confirmed in all respects and the Borrower confirms that the Obligations are not subject to any claims or defenses whatsoever.
Acknowledgement of Default. The Obligors acknowledge the occurrence of the Defaults.
Acknowledgement of Default. Borrower hereby acknowledges that as of the date hereof, the following Event of Default (the “Existing Default”) has occurred and remains uncured under the Business Financing Agreement:
a. Failure to maintain an actual net income of at least 80% of projected net income approved by Borrower’s board of directors for the quarters ended September 30, 2011, December 31, 2011 and March 31, 2012, as set forth in Section 4.12 (a).
b. Failure to maintain an Asset Coverage Ratio of at least 1.75 to 1.00_for the months ended August 31, 2011, September 30, 2011, October 31, 2011, November 30, 2011, December 31, 2011, April 30, 2012 and May 31, 2012, as set forth in Section 4.12 (b).
Acknowledgement of Default. Borrower acknowledges that the Notes are currently in default because of the Existing Default. Nothing contained herein or in any document executed concurrently herewith shall constitute or be construed as a waiver of such default. Except to the extent specifically set forth herein, the Bank retains all of its rights and remedies with respect to the Notes and the Loan Documents.
Acknowledgement of Default. The Company hereby acknowledges and agrees that the Existing Defaults have occurred and are continuing, and each constitutes an Event of Default and entitles YA Global to exercise its rights and remedies under the Transaction Documents, applicable law or otherwise. The Company further represents and warrants that as of the date hereof no other Event of Default under the Transaction Documents exist. YA Global has not waived, presently do not intend to waive and may never waive such Existing Defaults and nothing contained herein or the transactions contemplated hereby shall be deemed to constitute any such waiver. The Company hereby acknowledges and agrees that YA Global has the presently exercisable right to declare the Obligations to be immediately due and payable under the terms of the Transaction Documents.
Acknowledgement of Default. Borrower hereby acknowledges that as of the date hereof, the following Event of Default (the “Existing Default”) has occurred and remains uncured under the Loan and Security Agreement:
a. Borrower’s net loss negatively deviating by more than 30% from projected net loss for the quarter ended March 31, 2012, as set forth in Section 6.11.
Acknowledgement of Default. An acknowledgment that the loan is in default and specifically identifying the monetary defaults.
Acknowledgement of Default. The Company hereby acknowledges and agrees that the Existing Defaults have occurred and are continuing, and each constitutes an Event of Default and entitles the Holders to exercise their rights and remedies under the Transaction Documents, applicable law or otherwise. The Company further represents and warrants that as of the date hereof no other Event of Default under the Transaction Documents exists. The Holders have not waived, presently do not intend to waive and may never waive such Existing Defaults and nothing contained herein or the transactions contemplated hereby shall be deemed to constitute any such waiver. The Company hereby acknowledges and agrees that the Holders have the presently exercisable right to declare the Obligations to be immediately due and payable under the terms of the Transaction Documents.
Acknowledgement of Default. The Borrowers acknowledge that the Loan Parties are in violation, as of December 31, 1997, of the provisions of Sections 8.2(1), 8.2(m), 8.2(n) and 8.2(o) of the Agreement (collectively, the "Existing Potential Defaults").
Acknowledgement of Default. Pursuant to a letter dated November 3, 2004, Borrower has informed the Administrative Agent, and hereby acknowledges the occurrence and continuation, of breaches under Section 6.14 (Funded Debt Ratio), 6.15 (Debt Service Coverage Ratio) and 6.16 (Minimum Adjusted EBITDA) of the Credit Agreement, each for the Fiscal Quarter ended September 30, 2004, and each of which constitutes an Event of Default under Section 9.1(c) of the Credit Agreement (the “Existing Default”).