Material Extension of Credit Cross Default Sample Clauses

The Material Extension of Credit Cross-Default clause defines a situation where a default on a significant credit obligation by a party triggers a default under the current agreement. In practice, this means that if a party fails to meet its payment or performance obligations on a major loan or credit facility elsewhere, that failure is treated as a default under this contract as well, even if the obligations are unrelated. The core function of this clause is to protect the non-defaulting party by allowing them to take action—such as terminating the agreement or accelerating obligations—if the other party experiences serious financial distress, thereby managing credit risk and maintaining contractual security.
Material Extension of Credit Cross Default. Section 10.1 (d) is hereby amended by deleting subsection (ii) thereof and by inserting the following in lieu thereof:
Material Extension of Credit Cross Default 

Related to Material Extension of Credit Cross Default

  • Initial Extension of Credit The obligation of Lenders to make the initial Credit Extension hereunder is subject to the condition precedent that Administrative Agent shall have received all of the following, each dated (unless otherwise indicated or otherwise specified by Administrative Agent) the Closing Date, in form and substance satisfactory to Administrative Agent:

  • No Extension of Credit The Company has not, directly or indirectly, including through a Subsidiary, extended credit, arranged to extend credit, or renewed any extension of credit, in the form of a personal loan, to or for any director or executive officer of the Company.

  • Extension of Credit For the purposes hereof, each drawdown, rollover and conversion shall be deemed to be an extension of credit to the Borrower hereunder.

  • Termination of Credit Facility (a) The Credit Facility shall terminate upon the earliest to occur of: (i) the termination of the Credit Facility in accordance with Section 13.1; (ii) the date on which the Credit Facility has been permanently reduced to zero pursuant to Section 2.3; and (iii) the Maturity Date. (b) Upon the termination of the Credit Facility, the right of the Borrower to obtain any credit thereunder and all of the obligations of the Lenders to extend credit thereunder shall automatically terminate.

  • Conditions to Initial Extension of Credit The agreement of each Lender to make the initial extension of credit requested to be made by it is subject to the satisfaction, prior to or concurrently with the making of such extension of credit on the Closing Date, of the following conditions precedent: