Draw Events Clause Samples

A Draw Events clause defines the specific circumstances under which a party is permitted to request or access funds, typically under a loan or credit agreement. In practice, this clause outlines the conditions that must be satisfied before a borrower can make a drawdown, such as providing required documentation, meeting financial covenants, or ensuring no default has occurred. Its core function is to protect the lender by ensuring that funds are only disbursed when all agreed-upon prerequisites are met, thereby managing risk and maintaining control over the lending process.
Draw Events. With respect to any Qualified Letter of Credit, the Beneficiary shall be permitted thereunder: (a) from time to time, if the Lessee fails to make any payment of Base Rent on an applicable Rent Payment Date, to draw upon such Qualified Letter of Credit an amount equal to or less than the amount of Base Rent that on such Rent Payment Date was due and payable but not paid and that remains unpaid on the date of such drawing; (b) if Lessee fails to make a Stipulated Loss Value Payment due and payable on a Stipulated Loss Value Date pursuant to Section 12.1, to draw upon such Qualified Letter of Credit an amount equal to or less than the Stipulated Loss Value Payment that on such Stipulated Loss Value Date was due and payable but not paid and that remains unpaid on the date of such drawing; (c) if any Lease Event of Default has occurred and is continuing, to draw upon such Qualified Letter of Credit an amount equal to the maximum remaining amount available to be drawn thereunder; (d) if (i) an Obligor makes any general arrangement or assignment for the benefit of creditors; (ii) an Obligor becomes a “debtor” as defined in 11 U.S.C. § 101 of the Bankruptcy Code or any successor statute thereto (unless, in the case of a petition filed against such Obligor, the same is dismissed within ninety (90) days or such Obligor ceases to be an “Obligor” within ninety (90) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of the assets of an Obligor where possession is not restored to such Obligor within ninety (90) days and such Obligor does not cease to be an “Obligor” within ninety (90) days; (iv) the attachment, execution or other judicial seizure of substantially all of the assets of an Obligor where such attachment, execution or other judicial seizure is not discharged within ninety
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Draw Events. At any time after a Draw Event (as defined below) occurs, the Beneficiary may present its written demand for payment under the Letter of Credit. The Beneficiary may retain such funds to the extent required to compensate Landlord for damages incurred, or to reimburse Landlord as provided herein, in connection with any such default or other Draw Event. A “Draw Event” shall mean any of the following: (A) a Tenant Default occurs; (B) an event has occurred which, with the passage of time or giving of notice or both, would constitute a Tenant Default, where Landlord is prevented from, or delayed in, giving such notice because of an Insolvency Proceeding; (C) Tenant is the subject of an Insolvency Proceeding; (D) this Lease is terminated by Landlord due to a Tenant Default; (E) the Letter of Credit is not replaced with a Letter of Credit from a different financial institution if and when required by Section 32(b); and (F) the Letter of Credit is not extended by the date which is sixty (60) days prior to its expiration. With respect to the Draw Events specified in clauses (A) and (B) above, Beneficiary may draw upon the Letter of Credit in the amount required to compensate Landlord for damages incurred or to reimburse Landlord as provided herein, and Beneficiary may retain the funds so drawn, with subsequent demands at Beneficiary’s sole election as Landlord incurs further damages; and with respect to the Draw Events specified in clauses (C), (D), (E) and (F) above, Beneficiary may draw upon the Letter of Credit in the full amount thereof, with the proceeds of such draw to be held by Beneficiary and applied as provided for in this Section 32.
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Draw Events. PBGC may draw the full amount of the Letter of Credit under the Agreement, in the event of any of the following, except subsection (c)(4) below, : (1) PBGC receives a Notice of Intent to Terminate the Plan pursuant to 29 U.S.C.ss.1341(c) ; (2) PBGC issues a Notice of Determination with respect to the Plan pursuant to 29 U.S.C.ss.1342; (3) RJR fails to provide a replacement Letter of Credit under Section VI(b) of this Agreement more than thirty (30) business days before the expiration of the Letter of Credit then in place. (4) RJR fails to make a Required Contribution by the prescribed date. If this event occurs, PBGC may draw down on the Letter of Credit in an amount equal to the amount of the missed Required Contribution. In the event the Letter of Credit is drawn upon to cover a missed Required Contribution, RJR shall provide, within five (5) business days of the prescribed date of the Required Contribution, a replacement Letter of Credit in the amount of $116 million, subject to the limitations of Section VI(a) of this Agreement.
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Draw Events. The Letter of Credit shall permit a draw of its entire ----------- amount if: (1) During the life of the Agreement, BW fails to cause the Letter of Credit to be renewed no later than thirty (30) days prior to the Letter of Credit's expiration date, (2) PBGC receives a Notice of Intent to Terminate the WKI Pension Plan pursuant to 29 U.S.C. 1341(c), or (3) PBGC issues a Notice of Determination with respect to the WKI Pension Plan pursuant to 29 U.S.C. 1342; provided, however, that upon occurrence of either of the events listed in (2) and (3) above, the entire amount of the Letter of Credit ("LC Amount") shall be transferred into an escrow account (to be established as reasonably agreed by BW and PBGC) and shall remain in such escrow account until the earlier to occur of (x) such time as BW and PBGC agree in writing that the WKI Pension Plan has terminated pursuant to 29 U.S.C. 1341 or 1342, or has not so terminated, and therefore, that such amount should be released to PBGC or BW, as applicable, or (y) the issuance of a final order by a court of competent jurisdiction that the WKI Pension Plan has terminated or will terminate, as of a particular date, or that no such termination has or will occur as of a particular date, at which time the LC Amount shall be released to PBGC or BW, as applicable, plus interest thereon, as determined by, and subject to, the next succeeding paragraph. During the period between the date the LC Amount is drawn ("Transfer Date") and the date the LC Amount is finally released ("Release Date"), the LC Amount shall be invested in United States Treasury securities. In the event that the LC Amount is released to PBGC, all interest earned on the LC Amount between the Transfer Date and the termination date of the WKI Pension Plan, as finally determined, shall be transferred to BW and the balance of the escrow amount shall be transferred to PBGC. In the event that the LC Amount is released to BW, all interest earned on the LC Amount shall also be transferred to BW. If the Unfunded Benefit Liabilities in the WKI Pension Plan on the termination date of the WKI Pension Plan, or in the case of (1) above, the Transfer Date, is less than $15,000,000, PBGC shall also return any such excess to BW, as soon as practicable, plus interest earned, if any, on such excess from the Transfer Date to the date such excess is returned.
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Draw Events. PBGC may draw the full amount of the Letter of Credit, and any replacement Letter of Credit, in the event of the following: (1) PBGC receives a Notice of Intent to Terminate the Plan in a distress termination pursuant to section 4041(c) of ERISA; (2) Ten (10) days after PBGC issues a Notice of Determination that the Plan should be terminated in an involuntary termination pursuant to section 4042 of ERISA; (3) Tultex fails to provide a replacement Letter of Credit more than thirty (30) business days before the expiration of the Letter of Credit then in place; (4) Tultex fails to make an Additional Cash Contribution by the prescribed date; and (5) Tultex fails to maintain the Required Credit Balance as described in Section III above.
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Draw Events. At any time after a Draw Event (as defined below) occurs, the Beneficiary may present its written demand for payment of the entire face amount of the Letter of Credit (or, at the Beneficiary’s sole election, for payment of a portion of the amount of the Letter of Credit as is required to compensate Landlord for damages incurred, with subsequent demands at the Beneficiary’s sole election as Landlord incurs further damages) and the funds so obtained shall become due and payable to the Beneficiary. The Beneficiary may retain such funds to the extent required to compensate Landlord for damages incurred, or to reimburse Landlord as provided herein, in connection with any such default or other Draw Event, and any remaining funds shall be held as cash Security Deposit for Tenant’s obligations hereunder. A “Draw Event” shall mean any of the following: (A) a Tenant Default occurs; (B) an event has occurred which, with the passage of time or giving of notice or both, would constitute a Tenant Default, where Landlord is prevented from, or delayed in, giving such notice because of an Insolvency Proceeding; (C) Tenant is the subject of an Insolvency Proceeding; (D) this Lease is terminated by Landlord due to a Tenant Default; (E) the Letter of Credit is not replaced with a Letter of Credit from a different financial institution if and when required by Section 32(c); and (F) the Letter of Credit is not extended by the date which is sixty (60) days prior to its expiration.
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Related to Draw Events

  • Default Events (a) Any material breach of the Funding Agreement by the Recipient, including those set out below, will be an event of default (“Default Event”): 1. the Recipient has amounts owing to the IESO in respect of another funding agreement or other program, contract or arrangement with the IESO that have not been paid after due notice; 2. the IESO notifies the Recipient that it is in default of any existing agreements with the IESO, its predecessor entities, or any of their third party funds managers, including funding agreements; 3. the Recipient fails to complete or submit to the IESO any Activities set out in Schedule C by the applicable Target Completion Date; or 4. the Recipient fails to notify the IESO of any of the events set out in Section 6.1. (b) Should a Default Event occur, the IESO will be entitled to deliver to the Recipient a written notice that the Recipient is in default of the obligations under the Funding Agreement (the “Notice of Default”). The Notice of Default will set out the nature of the Default Event and a reasonable period of time by which the Default Event must be cured.

  • Trigger Events The Employee shall be entitled to collect the severance benefits set forth in Subsection (b) hereof in the event that either (i) the Employee voluntarily terminates employment for any reason within the 30-day period beginning on the date of a Change in Control, (ii) the Employee voluntarily terminates employment within 90 days of an event that both occurs during the Protected Period and constitutes Good Reason, or (iii) the Bank or the Company or their successor(s) in interest terminate the Employee's employment without his written consent and for any reason other than Just Cause during the Protected Period.

  • Termination Events If the Early Termination Date results from a Termination Event:—

  • Amortization Events If any one of the following events shall occur: (a) failure on the part of the Sellers (i) to make any payment or deposit required by the terms of this Agreement or any Supplement on or before the date occurring five Business Days after the date such payment or deposit is required to be made, or (ii) duly to observe or perform any other covenants or agreements of the Sellers set forth in this Agreement or any Supplement, which failure has a material adverse effect on the Investor Certificateholders of any Series and which continues unremedied for a period of 60 days after the date on which notice of such failure, requiring the same to be remedied, shall have been given to the Sellers by the Trustee, or to the Sellers and the Trustee by an Investor Certificateholder; (b) any representation or warranty made by the Sellers in this Agreement or any Supplement or any information to identify the Accounts required to be delivered by the Sellers pursuant to Section 2.01 or 2.09 (i) shall prove to have been incorrect in any material respect when made or when delivered, which continues to be incorrect in any material respect for a period of 60 days after the date on which notice of such failure, requiring the same to be remedied, shall have been given to the Sellers by the Trustee, or to the Sellers and the Trustee by an Investor Certificateholder, and (ii) as a result of such incorrectness the interests of the Investor Certificateholders of any Series are materially and adversely affected; provided, however, that an Amortization Event shall not be deemed to have occurred under this paragraph if the Sellers have repurchased the related Receivables or all such Receivables, if applicable, during such period in accordance with the provisions of this Agreement; (c) any of the Sellers shall consent to the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to such Seller or of or relating to all or substantially all its property, or a decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against such Seller; or any of the Sellers shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations (any such act or occurrence being an “Insolvency Event”); (d) the Trust shall become an “investment company” within the meaning of the Investment Company Act; (e) a failure by the Sellers to convey Receivables in Additional Accounts or Participation Interests to the Trust within five Business Days after the day on which they are required to convey such Receivables or Participation Interests pursuant to Section 2.09(a); (f) a Servicer Default shall occur; or (g) a Transfer Restriction Event shall occur; then, in the case of any event described in paragraph (a), (b) or (f), either the Trustee or the Holders of Investor Certificates evidencing more than 50% of the aggregate unpaid principal amount of any Series of Investor Certificates to which such event relates by notice then given to the Sellers and the Servicer (and to the Trustee if given by the Investor Certificateholders) may declare that an amortization event (an “Amortization Event”) has occurred with respect to such Series as of the date of such notice, and, in the case of any event described in paragraph (c), (d), (e) or (g), subject to applicable law, an Amortization Event shall occur with respect to all outstanding Series without any notice or other action on the part of the Trustee or the Certificateholders immediately upon the occurrence of such event.

  • Additional Disruption Events Change in Law: Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by adding the words “(including, for the avoidance of doubt and without limitation, adoption or promulgation of new regulations authorized or mandated by existing statute)” after the word “regulation” in the second line thereof.