Common use of Default by Obligor Clause in Contracts

Default by Obligor. In the event of a default by any Obligor in the performance of his obligation to purchase and pay for Shares on the Purchase Date, the Equity Contract Agent on behalf of the Corporation shall have, in addition to any other rights provided by law or contract, all the rights of a secured creditor with respect to the Collateral provided in the Uniform Commercial Code of the State of Indiana (or in any successor or similar statute at the time in effect) and may, subject to any requirements of applicable bankruptcy or other laws, sell such Collateral in any way permitted under applicable law. Any net proceeds realized by the Equity Contract Agent in exercising any remedy hereunder and any amounts received by the Equity Contract Agent upon the maturity of any Collateral following such default, after deducting the reasonable expenses of such realization (including reasonable attorneys' fees) and of the collection of such amount shall be applied to the payment of the purchase price of the Shares which the defaulting Obligor shall be obligated to purchase, and any excess shall be paid to or upon the order of the Obligor. Promptly after receipt in full of such purchase price, the Equity Contract Agent shall transmit a certificate for the number of such Shares for which payment has been so made to such Obligor. The defaulting Obligor shall remain liable to pay the Equity Contract Agent, upon demand, an amount equal to the excess, if any, of his aggregate purchase obligation and the realization expenses of the Equity Contract Agent over the net proceeds of such Collateral.