Cancellation of Indebtedness Clause Samples
The Cancellation of Indebtedness clause outlines the conditions under which a party's obligation to repay a debt is formally forgiven or discharged. Typically, this clause specifies the circumstances—such as fulfillment of certain requirements, settlement agreements, or mutual consent—under which the creditor agrees to release the debtor from further payment obligations. Its core practical function is to provide a clear legal mechanism for resolving outstanding debts, thereby preventing future disputes and clarifying the financial relationship between the parties.
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Cancellation of Indebtedness. Borrower shall not and shall not permit any Subsidiary of Borrower to cancel any claim or debt owing to it, except for reasonable consideration and in the ordinary course of business.
Cancellation of Indebtedness. The Borrower shall not, and shall cause each of its Subsidiaries to not, and not permit any other Borrower Affiliate Party to, cancel any claim or debt owing to it, except for reasonable consideration or in the ordinary course of business.
Cancellation of Indebtedness. Cancel any claim or debt owing to it, except for reasonable consideration negotiated on an arm’s length basis and in the ordinary course of its business consistent with past practices.
Cancellation of Indebtedness. No Loan Party shall cancel any material claim or Indebtedness owing to it, except for reasonable consideration and in the ordinary course of its business.
Cancellation of Indebtedness. No Credit Party shall cancel any claim or debt owing to it, except for reasonable consideration negotiated on an arm's-length basis and in the ordinary course of its business consistent with past practices.
Cancellation of Indebtedness. No Borrower shall cancel any claim or debt owing to it, except for reasonable consideration negotiated on an arms-length basis and in the ordinary course of its business consistent with past practices.
Cancellation of Indebtedness. No Credit Party shall cancel any claim or debt owing to it, except for reasonable consideration negotiated on an arm's length basis and in the ordinary course of its business consistent with past practices.
Cancellation of Indebtedness. Borrower shall not cancel any material ----------------------------- claim or debt owing to it, except for reasonable consideration or (as to Collateral not constituting Eligible Accounts) in the ordinary course of business.
Cancellation of Indebtedness. Holder hereby agrees to cancel and ---------------------------- extinguish the Indebtedness in exchange for the consideration set forth in Section 4 of this Agreement (the "Consideration"). Holder further acknowledges and agrees that the payment of the Consideration shall constitute full satisfaction of $258,250 of the Indebtedness represented thereby and that the Corporation shall have no further obligation to repay same.
Cancellation of Indebtedness. No Loan Party shall cancel any claim or Indebtedness owing to it, except for adequate consideration negotiated in an arms length transaction and in the ordinary course of its business consistent with past practices.