Default Under Other Borrowings. (a) A Default which continues beyond any applicable grace period shall occur under any obligation of or guaranteed by any Borrower equal to or greater than $100,000, or any recourse obligation of or guaranteed by the Guarantor equal to or greater than $1,000,000, if the effect of such default is to accelerate the maturity of such obligation or to permit the holder or obligee thereof to cause such obligation to become due prior to its stated maturity; (b) A Default shall occur under any obligation of a consolidated Affiliate equal to or greater than $10,000,000, which is otherwise non-recourse to each Borrower and the Guarantor.
Appears in 2 contracts
Sources: Financing and Security Agreement (American Retirement Corp), Financing and Security Agreement (American Retirement Corp)