Default and Event of Default Clause Samples
The "Default and Event of Default" clause defines the circumstances under which a party is considered to have failed to meet its contractual obligations, and specifies what constitutes a formal event of default. Typically, this clause outlines specific breaches, such as missed payments or failure to perform key duties, and may include grace periods or notice requirements before an event is officially recognized as a default. Its core practical function is to provide a clear framework for identifying and responding to serious breaches, thereby protecting parties by enabling remedies such as termination or acceleration of obligations when defaults occur.
Default and Event of Default. Borrower represents and warrants that at the time of and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing or would result from this Amendment.
Default and Event of Default. The Bank shall give notice of default or of an event of default, but such notice shall not affect any of the Bank’s rights under this Agreement nor shall such notice be required as a condition precedent to a default or an event of default hereunder. If any of the following events (“Events of Default” or, if the giving of notice or the lapse of time or both is required, then, prior to such notice or lapse of time, “Default” or “Defaults”) shall occur:
7.1 The Borrower’s failure to pay when due any Obligation, whether by maturity, acceleration or otherwise, after having been given a five (5) day grace period;
7.2 Any warrants, representations or statements made or furnished to the Bank by, or on behalf of, the Borrower are false;
7.3 The Borrower’s failure to perform any of its agreements, obligations, warranties or representations in this Agreement shall represent a Default and, unless such failure is cured within thirty (30) days from its occurrence, an Event of Default;
7.4 The Borrower’s failure to perform any agreement with any other person or entity for borrowed money or lease of real or personal property shall represent a Default and, unless such failure is cured within thirty (30) days from its occurrence or is otherwise contested in good faith and on a reasonable basis by the Borrower, an Event of Default;
7.5 A breach, default or event of default shall occur under any other agreement between the Borrower and the Bank shall represent a Default and, unless such breach, default, or event of default is cured within thirty (30) days from its occurrence, an Event of Default;
7.6 The cancellation or material reduction in current insurance coverages with respect to Collateral, or the material and uninsured loss or theft, substantial damage or destruction or unauthorized sale or encumbrance of any material portion of the Collateral, or the making of any levy on, or seizure or attachment of a material portion of the Collateral.
7.7 The Borrower shall fail to pay any amount on any Indebtedness the outstanding balance of which exceeds $250,000 when the same becomes due and payable and such failure shall continue after the applicable cure or grace period, if any.
7.8 The Borrower’s dissolution, termination of existence, insolvency, cessation of normal business operations, business failure, or the calling of a meeting of the Borrower’s creditors, or the Borrower’s admission of its inability to pay its debts as they become due or proposal of a moratorium or compo...
Default and Event of Default. Each of the following constitutes a default by Grantor under this document: (i) the failure of the Grantors to perform any warranty or agreement contained in this? Agreement or in any instrument securing payment of any other indebtedness, (ii) a default by Grantor under any other promissory note or other instrument of indebtedness executed by Grantors, or any one or more of them, and payable to CHS; (iii) if any statement or report furnished by the Grantor to CHS is false in any material aspect; (iv) if any Collateral is lost, stolen, substantially damaged, destroyed, or, without the Grantor’s prior written consent, sold or encumbered; (v) if any of the Grantors die, are dissolved or its existence is terminated, declares insolvency, is declared insolvent, is the subject to of any proceedings under bankruptcy or insolvency law, or is the subject of any proceeding under any state or federal farm or agricultural mediation law; (vi) any failure by Grantor to cultivate and harvest the crops resulting from the use of the products herein in due season and in a good and ▇▇▇▇▇▇ like manner, or to property care for or protect any of the Collateral; (vii) CHS, in good faith, deems itself insecure or determines that the prospect of Grantor’s payment under this Agreement or any other indebtedness or the prospect of Grantor’s performance of this or any other instrument securing this Agreement or relating to is impaired, and (viii) and failure by Grantors to satisfy, to CHS’s satisfaction, each condition set out in any other instrument or evidence of indebtedness. Upon the occurrence of any one or more events of default, at CHS’s option, all unpaid obligations shall become immediately due and payable, without notice to or demand upon Grantors and CHS shall have all remedies as to the Collateral of a secured party under the UCC.
Default and Event of Default. Upon the commencement and during the continuance of a Default or Event of Default, the Collateral Agent may, at its option, without notice to or demand upon either Grantor (both of which are hereby waived for the purpose of this Section 4), in addition to all other rights and remedies provided under any of other Credit Transaction Documents, in its own name or the name of either Grantor, demand, ▇▇▇ upon or otherwise enforce the Assigned Contracts to the same extent as if the Collateral Agent were the party named in the Assigned Contracts, and exercise all other rights of either Grantor under the Assigned Contracts in such manner as it may determine. Any moneys actually received by the Collateral Agent pursuant to the exercise of any of the rights and remedies granted in this Collateral Assignment shall be applied as provided in the Intercreditor Agreement.
Default and Event of Default by Tenant under this Lease. Subject to the provisions of Section 14.2 hereof, the following shall constitute an event of default by Tenant (“Tenant Event of Default”):
14.1.1 Tenant shall fail to make any payment to Landlord as and when due under this Lease subject to any applicable notice and cure provisions;
14.1.2 Tenant shall fail to perform any other obligation contained in this Lease subject to any applicable notice and cure provisions;
14.1.3 Any willful and material misrepresentation by Tenant in (a) this Lease or (b) any other material submission to Landlord or (c) made by Tenant on behalf of Landlord to any governmental authority;
14.1.4 Except for remodeling or Reconstruction Activities in the event of a casualty, the Public Use Unit No. 2 is abandoned for a period of 365 days or more (“Goes Dark”); or
14.1.5 Tenant’s failure to meet its repair and maintenance obligations under the Responsibility Matrix (Exhibit D).
Default and Event of Default. It is further expressly agreed that the following events shall constitute an "Event of Default" hereunder: (a) failure of Maker to pay Holder (i) any principal on the Maturity Date or (ii) any accrued interest on each Monthly Payment Date or other payment obligation as stipulated herein and such failure to pay shall remain unremedied for two (2) Business Days thereafter; (b) breach (each, a "Default") by Maker of any other warranty, representation, covenant, term or condition of the Purchase Agreement or this Promissory Note and Security Agreement and the same has not been cured by Maker within thirty (30) days after written notice of such Default is provided by Holder to Maker; (c) a default under any loan or instrument in excess of $500,000, whether now existing or hereafter committed or made, secured by the Collateral (as defined in Section 2.01 below), which default shall continue after the applicable grace period, if any, specified in such loan or instrument, which would give rise to a right to accelerate the indebtedness that is the subject of such loan or instrument; (d) the filing by Maker of a voluntary petition for relief under Title 11 of the United States Code, as amended (the "United States Bankruptcy Code"), or a voluntary petition or answer seeking reorganization, arrangement or readjustments of debts, or any other relief under the United States Bankruptcy Code or any other insolvency act or law, state, federal or other governmental, now or hereafter existing, or any agreement by Maker indicating consent to, or approval or acquiescence in, any such petition or proceeding; (e) the application by Maker for, or the consent or acquiescence of Maker in the appointment of, a receiver or trustee for all or a substantial part of its property; (f) the making by Maker of a general assignment for the benefit of creditors; (g) the inability of Maker, or the admission of Maker in writing of its inability, to pay its debts as they mature; (h) the filing of an involuntary petition against Maker seeking reorganization, arrangement or readjustment of its debts or for any other relief under the United States Bankruptcy Code or any other insolvency act or law, state, federal or other governmental, now or hereafter existing, or the involuntary appointment of a receiver or trustee of Maker for all or a substantial part of its property or assets, or the issuance of a warrant of attachment or execution of similar process against a substantial part of the property ...