Facility Servicer Event of Default Clause Samples
The Facility Servicer Event of Default clause defines specific circumstances under which the party responsible for servicing a facility, such as a loan or credit arrangement, is considered to be in default. This typically includes failures like not performing required duties, breaching key obligations, or becoming insolvent. When such an event occurs, it may trigger remedies for the lender or facility provider, such as the right to replace the servicer or accelerate repayment. The core function of this clause is to protect the interests of the facility provider by ensuring that the servicing of the facility is maintained to agreed standards and by providing clear consequences if the servicer fails in its duties.
Facility Servicer Event of Default. The Closed-End Servicer will notify the Titling Trust, the Initial Beneficiary, the Deal Agent, the Closed-End Administrative Agent, the Closed-End Collateral Agent and each Exchange Noteholder of any Facility Servicer Event of Default, no later than 5 Business Days after an Authorized Officer of the Closed-End Servicer obtains actual knowledge of such event.
Facility Servicer Event of Default. (a) The occurrence of an Event of Bankruptcy with respect to the Closed-End Servicer will be a “
Facility Servicer Event of Default. (a) The occurrence of an Insolvency Event with respect to the Servicer will be a “Facility Servicer Event of Default”.
(b) The Servicer will notify the Covered Parties of any Facility Servicer Event of Default, no later than two Business Days after an Authorized Officer of the Servicer obtains knowledge of such event.
(c) If a Facility Servicer Event of Default has occurred, all of the rights and obligations (other than the rights and obligations of the Servicer set forth in Section 3.03) of the Servicer under this Agreement may be terminated by: (i) so long as any Exchange Notes remain Outstanding, the Exchange Noteholders representing at least 50% of the aggregate Exchange Note Balance (voting as a single class), (ii) if there are no Exchange Notes Outstanding, but the Revolving Facility Balance is greater than zero or the Revolving Facility has not been terminated, the Lender and (iii) otherwise, the Titling Trust, in each case by notice to the Servicer, the Administrative Agent, the Lender, the Collateral Agent and each Exchange Noteholder.