Common use of Default by the Borrower Clause in Contracts

Default by the Borrower. Upon the occurrence of an event of default by the Borrower (a “Borrower Event of Default”): a) the Lender shall copy the Department with all notices to the Borrower, and further provide the Department written notice describing in reasonable detail the circumstances of the event of default. Upon such notice to the Department of a Borrower Event of Default, the requirement of the Lender to request extensions to the Guarantee Term is suspended and Guarantee will remain in force; and b) The Lender shall diligently pursue the collection of all amounts owed by the Borrower under the Loan documents. In the event the Loan is collected in full, the Guarantee will terminate pursuant to Section 4(b). In the event the Borrower Event of Default is cured, upon notice to the Department of the cure, the Guarantee will remain in force for the remainder of Guarantee Term, as extended pursuant to Section 3. c) Within thirty (30) days of the Borrower Event Default and subsequent loss on the loan, the Lender shall notify the Department in writing and submit a request for payment to the Department. The Department will pay the Lender the Amount of Guarantee due on the remaining default loan balance.

Default by the Borrower. Upon the occurrence of an event of default by the Borrower (a “Borrower Event of Default”): a) the Lender shall copy the Department with all notices to the Borrower, and further provide the Department written notice describing in reasonable detail the circumstances of the event of default. Upon such notice to the Department of a Borrower Event of Default, the requirement of the Lender to request extensions to the Guarantee Term is suspended and Guarantee will remain in force; and b) The Lender shall diligently pursue the collection of all amounts owed by the Borrower under the Loan documents. In the event the Loan is collected in full, the Guarantee will terminate pursuant to Section 4(b). In the event the Borrower Event of Default is cured, upon notice to the Department of the cure, the Guarantee will remain in force for the remainder of Guarantee Term, as extended pursuant to Section 3. c) Within thirty (30) days of the Borrower Event Default and subsequent loss on of the loan, the Lender shall notify the Department in writing and submit a request for payment to the Department. The Department will pay the Lender the Amount of Guarantee due on the remaining default loan balance.