Defaulting Buyers Clause Samples
The 'Defaulting Buyers' clause defines the consequences and procedures that apply when a buyer fails to fulfill their contractual obligations, such as making timely payments or accepting delivery of goods. Typically, this clause outlines the steps the seller may take in response, which can include charging interest on overdue amounts, suspending further deliveries, or even terminating the contract. Its core practical function is to protect the seller from financial loss and operational disruption by providing clear remedies and deterrents in the event of buyer default.
Defaulting Buyers. (a) Notwithstanding any provision of this Agreement to the contrary, if any Buyer becomes a Defaulting Buyer, then the following provisions shall apply for so long as such Buyer is a Defaulting Buyer:
(i) The applicable fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Buyer pursuant to Section 9.1; (ii) The Commitment of and the outstanding Purchase Prices paid by such Defaulting Buyer shall not be included in determining whether all Buyers or the Required Buyers have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 22), provided that (a) the Committed Sum of any Defaulting Buyer may not be increased or extended without the consent of such Buyer, and (b) any amendment, waiver, consent or other action or inaction requiring the consent of all Buyers or each affected Buyer that by its terms affects any Defaulting Buyer more adversely than the other affected Buyers shall require the consent of such Defaulting Buyer;
Defaulting Buyers. (a) Notwithstanding any provision of this Agreement to the contrary, if any Buyer becomes a Defaulting Buyer, then the following provisions shall apply for so long as such Buyer is a Defaulting Buyer:
(i) The applicable fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Buyer pursuant to Section 9.1;
(ii) The Commitment of and the outstanding Purchase Prices paid by such Defaulting Buyer shall not be included in determining whether all Buyers or the Required Buyers have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 22), provided that (a) the Committed Sum of any Defaulting Buyer may not be increased or extended without the consent of such Buyer, and (b) any amendment, waiver, consent or other action or inaction requiring the consent of all Buyers or each affected Buyer that by its terms affects any Defaulting Buyer more adversely than the other affected Buyers shall require the consent of such Defaulting Buyer;
(iii) If any Swing Line Transactions shall exist at the time a Buyer becomes a Defaulting Buyer, then the Seller shall within one Business Day following notice by the Agent repurchase the Purchased Loans subject to such Swing Line Transaction.
(b) Notwithstanding any provision of this Agreement to the contrary, if the Defaulting Buyer is a Nonfunding Buyer, and the Agent or the other Buyer(s) (electively, in accordance with Section 2.1) fund or pay any other amounts required to be paid by it hereunder which the Nonfunding Buyer failed to fund or pay (the “Unfunded Amount”), then
(i) the respective ownership interests of both (A) the Nonfunding Buyer and (B) Agent or the Buyer (or Buyers) that funded or paid the Unfunded Amount, shall be proportionately decreased and increased, respectively, to the same extent as if their respective Committed Sums were changed in direct proportion to the unreimbursed balance outstanding from time to time thereafter of the amount so funded or paid;
(ii) the Nonfunding Buyer’s share of all subsequent distributions of Repurchase Prices and other realizations on the Purchased Loans received shall be paid to the Agent and/or other Buyer(s) that so funded the Unfunded Amount until the Agent and/or such other Buyer(s) have been fully repaid the amount so funded or paid; and
(iii) such adjustment shall remain in effect until such time as the Agent and/or other Buyer(s) that funded or paid the Unfunded Amount have been so fully...
Defaulting Buyers. 73 vi EXHIBITS Exhibit A: Glossary of Defined Terms Exhibit B: Reserved Exhibit C: Form of Officer’s Compliance Certificate Exhibit D: Form of Bailee Letter Exhibit E: Form of Power of Attorney Exhibit F: Wiring Instructions Exhibit G: Reserved Exhibit H: Representations and Warranties Exhibit I: Mortgage Loan Documents Exhibit J: Form of Request for Temporary Increase Exhibit K: Reserved Exhibit L: Form of Officer’s Certificate Exhibit M: Form of Resolutions Exhibit N: Form of UCC-1 Financing Statement Exhibit SCHEDULES Schedule 1: Filing Jurisdictions and Offices Schedule 2: Ownership Interests of Seller Schedule 3: Allocation Percentages Schedule 4: Financial Statements and Other Reports Schedule 5: Litigation Disclosures
Defaulting Buyers. Notwithstanding any provision of this Agreement to the contrary, if any Buyer becomes a Defaulting Buyer, then the following provisions shall apply for so long as such Buyer is a Defaulting Buyer:
Defaulting Buyers. Article 3 of the Repurchase Agreement is hereby amended by adding the following Section 3.11 immediately after section 3.10:
Defaulting Buyers. 43 3.11. eMortgage Loan Transactions ....................................................................................... 46 Section 4. Transaction Limits and Sublimits. ........................................................................ 47 4.1. Transaction Limits ........................................................................................................ 47 4.2. Transaction Sublimits ................................................................................................... 48 4.3. Compliance ................................................................................................................... 49 Section 5.
Defaulting Buyers