Assignment for Benefit of Creditors Sample Clauses
The "Assignment for Benefit of Creditors" clause outlines the process by which a party may transfer its assets to a third party, known as an assignee, for the purpose of liquidating those assets and distributing the proceeds to creditors. In practice, this clause typically applies when a company is insolvent or unable to pay its debts, allowing for an orderly distribution of assets outside of formal bankruptcy proceedings. Its core function is to provide a structured alternative to bankruptcy, ensuring creditors receive payment in a fair and organized manner while potentially reducing legal costs and complexity.
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Assignment for Benefit of Creditors. The execution by Borrower or Guarantor of an assignment for the benefit of creditors;
Assignment for Benefit of Creditors. The Defaulting Party makes an assignment of a substantial part of its assets for the benefit of its creditors.
Assignment for Benefit of Creditors. If Lessee shall be sold out at a Sheriff's or Constable's Sale, or make any assignment for the benefit of creditors, or commit any act of bankruptcy whatsoever, then the rent for the balance of the said term shall at once become due and payable, as if by the terms of the Lease it were all payable in advance and may be collected by distress or otherwise, and shall be paid in full from the proceedings of any such assignment, sale or bankruptcy proceedings, any law, usage or custom to the contrary notwithstanding.
Assignment for Benefit of Creditors. The Borrower or any of its Subsidiaries shall make an assignment for the benefit of its creditors, or shall admit its insolvency or shall fail to pay its debts generally as such debts become due.
Assignment for Benefit of Creditors. If Borrower makes or proposes in writing, an assignment for the benefit of creditors generally, offers a composition or extension to creditors, or makes or sends notice of an intended bulk sale of any business or assets now or hereafter owned or conducted by Borrower; or
Assignment for Benefit of Creditors. There shall be an assignment by Borrower for the benefit of its creditors; or
Assignment for Benefit of Creditors. Should Grantor or any Guarantor file proceedings for a respite or make a general assignment for the benefit of creditors.
Assignment for Benefit of Creditors. The Company shall make an assignment for the benefit of, or enter into a composition with, creditors.
Assignment for Benefit of Creditors. Should Borrower file proceedings for a respite or make a general assignment for the benefit of creditors.
Assignment for Benefit of Creditors. An assignment by Customer for the benefit of creditors or the appointment of a receiver for Customer by legal proceedings or otherwise.