Common use of Collateral Event Clause in Contracts

Collateral Event. Section 8(f) of the Reimbursement Agreement provides that a “Collateral Event” occurs if the implied senior unsecured debt rating of Sunrise shall be “B-” or less by Standard and Poor’s Corporation, or “B1” or less by ▇▇▇▇▇’▇ Investors Service, Inc. Marriott has claimed that the current financial condition of Sunrise has caused a Collateral Event to occur under Section 8(f) of the Reimbursement Agreement.