Existing Default Clause Samples
The "Existing Default" clause defines how a contract addresses situations where one party is already in default under another agreement at the time the current contract is formed. Typically, this clause allows the non-defaulting party to treat the pre-existing default as a breach under the new contract, potentially triggering remedies such as suspension of obligations or termination. By explicitly recognizing prior defaults, this clause helps prevent parties from entering new agreements without disclosing unresolved issues, thereby protecting the non-defaulting party from unforeseen risks and ensuring transparency in contractual relationships.
Existing Default. 1. As of the date hereof, Borrower is and remains in default under the terms and conditions of the Existing Loan Documents by its failure to repay all Obligations on the maturity date thereof which coincides with the date of this Agreement ("EXISTING DEFAULT").
2. Notwithstanding such Existing Default, Borrower has requested that Lender agree, in consideration of the undertakings and obligations of Borrower and Guarantor set forth herein, to further extend the period within which Lender has agreed to forbear from the exercise of Lender's rights and remedies under the Existing Loan Documents. Lender has agreed to make such accommodations as and only to the extent set forth herein, and without waiving any of Lender's rights and remedies.
3. By reason of the Existing Default and by the scheduled maturity of all Obligations under the Existing Loan Documents, Borrower has acknowledged that all Obligations under the Existing Loan Documents are and continue to be immediately due and payable and Lender has the full legal right to exercise its rights and remedies under the Existing Loan Documents, including, but not limited to, the right to foreclose under any mortgages or deeds of trust, to enforce its remedies under the Uniform Commercial Code and other applicable laws, and take possession of and sell any Collateral described in the Existing Loan Documents.
Existing Default. Borrower acknowledges that Borrower failed to comply with the covenant set forth in Section 10.6.1 of the Loan Agreement (Debt Service Coverage Ratio) for the reporting period ending December 31, 2012 (the “Existing Default”).
Existing Default. Lenders hereby waive the Existing Default and agree to exercise no right or remedy in respect thereof hereafter; provided, however, that this waiver (i) shall be limited to the Existing Default only and to no other Event of Default (known or unknown); and (ii) shall not be construed to suggest or imply that Lenders have waived, or will waive, any other similar or dissimilar Event of Default hereafter.
Existing Default. The Credit Parties have failed to maintain a Minimum Trailing Three-Month Originations of at least $61,000,000 as of July 31, 2025, as required by the Loan Agreement and the other Loan Documents, resulting in the occurrence of a Default and/or Event of Default under the Loan Agreement (and the other Loan Documents) (the “Existing Default”).
Existing Default. 1. As of the date hereof, Borrower is in default under the terms and conditions of the Existing Loan Documents by its failure to repay all Obligations on the maturity date thereof which coincides with the date of this Agreement ("EXISTING DEFAULT").
2. Notwithstanding such Existing Default, Borrower has requested that Lender waive, in consideration of the undertakings and obligations of Borrower and Guarantor set forth herein, such Existing Default. Lender has agreed to waive such Existing Default as and only to the extent set forth herein, and without waiving any of Lender's rights and remedies.
Existing Default. Upon execution of this Amendment and all other documents required or requested by Lender in connection herewith by the Borrower, and payment by the Borrower of all sums and other fees required to be paid hereunder, the Existing Default shall be deemed waived by Lender, subject to the terms of this Amendment; provided, however, this waiver shall only apply to the Existing Default, and this Amendment shall not be deemed or construed in any manner as a waiver by Lender of any future defaults, “Events of Default,” (as such term may be used or defined in any of the Loan Documents), breaches or misrepresentations by the Borrower under any Loan Documents, or any of Lender’s rights or remedies in connection therewith, which may occur after the date hereof.
Existing Default. Borrower hereby acknowledges, confirms and agrees the Existing Default has occurred, it presently constitutes an Event of Default and entitles Lender to exercise its rights and remedies under the Loan Documents.
Existing Default. Pursuant to Subsection 2.2 of the Settlement Agreement, Khan and the Hencie Parties are required to pay monthly installments to Drawbridge. As of the date of execution of this Agreement, Khan and the Hencie Parties hereby acknowledge, confirm and agree that each of Khan and the Hencie Parties has failed to pay the monthly installments due on December 6, 2002, January 6, 2003 and February 6, 2003, as required by Subsection 2.2 of the Settlement Agreement, and such failure presently constitutes an Event of Default and entitles Drawbridge to exercise rights and remedies under the Settlement Agreement and the other Judgment Documents.
Existing Default. Lender hereby agrees that simultaneous with the execution of this Agreement by Borrowers and Lender, the “default” status of the Credit Agreement resulting from and relating to the written notice of Event of Default issued by Lender to Borrowers on or about December 21, 2012 (the “Existing Default”), shall be deemed to be cured, and the Credit Agreement, as hereby amended, shall, as of the date of execution of this Amendment, be deemed to be in non-default status.
Existing Default. The Credit Parties acknowledge the Existing Defaults. The Credit Parties agree that by entering into this Agreement, the Defendant is not waiving any rights it may have arising under or from the Existing Defaults, the Credit Agreements or any related transaction documents.