Loan Default Events Clause Samples
The 'Loan Default Events' clause defines the specific circumstances under which a borrower is considered to be in default on a loan agreement. This typically includes situations such as missed payments, insolvency, or breaches of other key terms in the contract. By clearly outlining what constitutes a default, the clause provides both parties with a shared understanding of the triggers for lender remedies, thereby reducing ambiguity and helping to manage risk in the lending relationship.
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Loan Default Events. Any one of the following which occurs and continues shall constitute a Loan Default Event:
(a) Failure of the Company to make any Loan Payment required by Section 4.2(a) hereof when due; or
(b) Failure of the Company to make any Purchase Price Payment required by Section 4.2(b) hereof when due; or
(c) Failure of the Company to observe and perform any covenant, condition or agreement on its part required to be observed or performed by this Agreement other than as provided in (a) or (b), which continues for a period of 60 days after written notice by the Authority or the Trustee delivered to the Company and the Credit Provider, if any, which notice shall specify such failure and request that it be remedied (including by redemption of all or a portion of the Bonds), unless the Authority and the Trustee shall agree in writing to an extension of such time; provided, however, that if the failure stated in the notice cannot be corrected within such period, the Authority and the Trustee will not unreasonably withhold their consent to an extension of such time if corrective action is instituted within such period and diligently pursued until the default is corrected;
(d) The dissolution or liquidation of the Company or the filing by the Company of a voluntary petition in bankruptcy, or failure by the Company promptly to cause to be lifted any execution, garnishment or attachment of such consequence as will materially impair the Company’s ability to carry on its obligations hereunder, or the commission by the Company of any act of bankruptcy, or adjudication of the Company as a bankrupt, or if a petition or answer proposing the adjudication of the Company as a bankrupt or its reorganization, arrangement or debt readjustment under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within ninety days after the filing thereof, or if the Company shall admit in writing its inability to pay its debts generally as they become due, or a receiver, trustee or liquidator of the Company shall be appointed in any proceeding brought against the Company and shall not be discharged within ninety days after such appointment or if the Company shall consent to or acquiesce in such appointment, or assignment by the Company for the benefit of its creditors, or the entry by the Company into an agreement of composition with its creditors, or a bankruptcy, insolvency or s...
Loan Default Events. The following events shall be “Loan Default Events”:
Loan Default Events. 20 Section 7.02. Remedies on Default.......................................................... 21 Section 7.03. Agreement to pay Attorneys' Fees and Expenses................................ 23 Section 7.04. No Remedy Exclusive.......................................................... 23 Section 7.05. Waivers...................................................................... 23 TABLE OF CONTENTS (continued) Page ARTICLE VIII PREPAYMENT Section 8.01. Redemption of Bonds with Prepayment Moneys................................... 23 Section 8.02. Options to Prepay Loan....................................................... 24 Section 8.03. Mandatory Prepayment......................................................... 24 Section 8.04. Amount of Prepayment......................................................... 25 Section 8.05. Notice of Prepayment......................................................... 26 ARTICLE IX
Loan Default Events. Any one of the following which occurs and continues shall constitute a “Loan Default Event”:
(a) Failure of the Company to make any Loan Payment required by Section 4.2(a) hereof when due; or
(b) (i) Failure of the Company to make any Purchase Price Payment or any Change of Control Payment required by Section 4.2(b) or Section 4.2(c) hereof, respectively, when due; or
Loan Default Events. Any one of the following which occurs and continues shall constitute a Loan Default Event:
Loan Default Events. 19 SECTION 7.2.
Loan Default Events. Any one of the following which occurs and continues shall constitute a Loan Default Event:
(a) failure of the Borrower to make any payment required by Section 4.2(a) hereof when due; or
(b) failure of the Borrower to observe and perform any covenant, condition or agreement on its part required to be observed or performed by this Agreement other than as provided in (a), which continues for a period of 30 days after written notice delivered to the Borrower and the Bank, which notice shall specify such failure and request that it be remedied, given to the Borrower and the Bank by the Authority or the Trustee, unless the Authority and the Trustee shall agree in writing to an extension of such time; provided, however, that if the failure stated in the notice cannot be corrected within such period, the Authority and the Trustee will not unreasonably withhold their consent to an extension of such time if corrective action is instituted within such period and diligently pursued until the default is corrected; or
(c) existence of an Event of Default under and as defined in Section 7.01(a) or (b) of the Indenture; or
(d) existence of an Event of Default under and as defined in Section 7.01(c) of the Indenture; or
(e) existence of an Event of Default under and as defined in Section 7.01(e) of the Indenture. The provisions of subsection (b) of this Section are subject to the limitation that the Borrower shall not be deemed in default if and so long as the Borrower is unable to carry out its agreements hereunder by reason of strikes, lockouts or other industrial disturbances; acts of public enemies; orders of any kind of the government of the United States or of the State of California or any of their departments, agencies, or officials, or any civil or military authority; insurrections, riots, epidemics, landslides; lightning; earthquake; fire; hurricanes; storms; floods; washouts; droughts; arrests; restraint of government and people; civil disturbances; explosions; breakage or accident to machinery, transmission pipes or canals; partial or entire failure of utilities; or any other cause or event not reasonably within the control of the Borrower; it being agreed that the settlement of strikes, lockouts and other industrial disturbances shall be entirely within the discretion of the Borrower, and the Borrower shall not be required to make settlement of strikes, lockouts and other industrial disturbances by acceding to the demands of the opposing party or parties when ...