Payment Blockage Sample Clauses
A Payment Blockage clause allows one party to temporarily prevent or delay payments that would otherwise be due under a contract, typically in response to certain triggering events such as a default or breach by the payee. In practice, this clause is often used in loan agreements or structured finance deals, where a junior creditor's right to receive payments is suspended if the borrower defaults on obligations to a senior creditor. The core function of this clause is to protect the interests of senior creditors by ensuring that funds are not distributed to subordinate parties when there are unresolved defaults or risks, thereby prioritizing repayment and reducing the risk of loss for those in higher payment priority.
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Payment Blockage. (i) In the event of any Event of Default (as defined in the Senior Credit Agreement) in the payment of principal of or premium or interest on, or any other amount owing with respect to, any Senior Debt, whether at maturity, by acceleration or otherwise ("Payment Default") or (b) in the event that any Event of Default (as defined in the Senior Credit Agreement) (other than an event described in clause (a)) (a "Non-Payment Default") with respect to any Senior Debt shall have occurred and be continuing, permitting the holder of such Senior Debt to declare such Senior Debt due and payable prior to the date on which it would otherwise have become due and payable, then no payment or distribution of any kind or character whether in cash, property or securities shall be made by any Debtor Party or any other Person on account of the Subordinated Obligations, and no such payment or distribution shall be accepted by any Lender, directly or indirectly, by set-off or otherwise (x) in the case of any Payment Default from the date the Lender Representative first received a written notice from the Senior Debt Representative of such Payment Default until the earlier of (1) the date upon which the Senior Debt shall be paid in full in cash or in the case of Senior Debt in respect of letters of credit to the extent they have not been drawn upon, shall be fully secured by cash collateral or (2) the date, if any, on which such Payment Default is cured or waived in writing by the Senior Debt Holders or (y) in the case of any Non-Payment Default, from the date the Lender Representative first received a written notice from the Senior Debt Representative of such Non-Payment Default and that the Senior Debt Representative intends that a Payment Blockage Period (as defined 36 41 hereinafter) is to commence until the earliest of (1) 180 days after such date, (2) the date on which the Senior Debt shall be paid in full in cash or in the case of Senior Debt in respect of letters of credit to the extent they have not been drawn upon, shall be fully secured by cash collateral or (3) the date, if any, on which such Non-Payment Default is cured or waived by the Senior Debt Holders or that the provisions of this paragraph have been waived by the Senior Debt Holders (any such period described in clauses (x) or (y) shall be referred to as a "Payment Blockage Period"), PROVIDED that: (1) during any consecutive 12-month period, no more than two Payment Blockage Periods relating to any Non-Payment...
Payment Blockage. Each Subsidiary Guarantor agrees that it shall not make any payment in respect of its Guarantee (except for certain Trustee expenses and except in Permitted Junior Securities or from the trust (if any) described in Section 8.04) if:
(a) a payment default on Designated Senior Debt of such Subsidiary Guarantor has occurred and is continuing beyond any applicable grace period; or
(b) any other default occurs and is continuing on any Designated Senior Debt of such Subsidiary Guarantor that permits the holders of that Designated Senior Debt to accelerate its maturity and the Trustee receives a notice of such default (a “Payment Blockage Notice”) from the Issuer or the holders of such Designated Senior Debt. Payments on any such Guarantee of a Subsidiary Guarantor shall and will be resumed:
(i) in the case of a payment default, when such default is cured or waived; or
(ii) in the case of a non-payment default, upon the earlier of the date on which such non-payment default is cured or waived and 179 days after the date on which the applicable Payment Blockage Notice is received, unless the maturity of any Designated Senior Debt has been accelerated. Neither the Trustee, the Issuers nor any such Subsidiary Guarantor shall be required to give effect to any new Payment Blockage Notice that may be delivered unless and until (A) 360 days have elapsed since the delivery of the immediately prior Payment Blockage Notice and (B) all scheduled payments of principal, premium, if any, and interest on the Notes that have come due have been paid in full in cash. No non-payment default that existed or was continuing on the date of delivery of a Payment Blockage Notice to the Trustee shall be, or be made, the basis for a subsequent Payment Blockage Notice.
Payment Blockage. Each Company Party hereby acknowledges that on November 4, 2015, the Agents delivered a Blockage Notice (as defined in the Indenture) to the indenture trustee to the holders of the Subordinated Notes thereby commencing a Payment Blockage Period (as defined in the Indenture), which Payment Blockage Period remains in full force and effect.
Payment Blockage. Until the Senior Indebtedness shall have been paid in full in cash, stock or property acceptable to Senior Creditor and the Senior Indebtedness shall have been terminated pursuant to the respective terms and provisions thereof, no payments (in cash, other property, by set-off or otherwise) or other distributions whatsoever in respect of any Junior Indebtedness shall be made.
Payment Blockage. If an Event of Default occurs and is continuing under the Indenture and the Notes, then no cash interest payments on account of the Loan shall be made during the period commencing on the earliest date the Trustee, HomeFed, the JCE or the NCE receives notice of, or otherwise becomes aware of, such Event of Default. Payments required under the Conditional Visa Denial Acceleration Obligation, the Provisional Refund Guaranty Agreement and HomeFed Expense Advancements may continue during such Event of Default.
Payment Blockage. Each Guarantor agrees that it shall not make any payment in respect of its Guarantee (except in Permitted Junior Securities or from the trust (if any) described in Section 8.04) if:
(a) a payment default on Designated Senior Debt of such Guarantor has occurred and is continuing beyond any applicable grace period; or
(b) any other default occurs and is continuing on any Designated Senior Debt of such Guarantor that permits the holders of that Designated Senior Debt to accelerate its Maturity and the Trustee receives a notice of such default (a “Payment Blockage Notice”) from the Issuer or the holders of such Designated Senior Debt. Payments on any such Guarantee of a Guarantor shall and will be resumed:
Payment Blockage. Until the Payment-in-Full of the Senior Indebtedness, no Credit Party shall make, and the Junior Creditor shall not accept, receive or retain, any payment, whether in cash, securities or other property (other than (a) payments in the form of Permitted Non-Cash Payments, (b) any refinancing in full of the Junior Debt made in accordance with and pursuant to the requirements set forth in Section 17 hereof, and (c) the reasonable and documented out-of-pocket costs and expenses payable by the Credit Parties to the Junior Creditor in connection with the preparation, negotiation, documentation and closing of the Junior Loan Documents, and any amendment, waiver, forbearance or other agreement executed in connection therewith,), on account of the Junior Debt or the redemption thereof, and no Credit Party shall defease or acquire any of the Junior Debt.
Payment Blockage. No payment by the Borrower on the ---------------- Obligations (whether pursuant to the terms of the Obligations or upon acceleration or otherwise) shall be made if, at the time of any such payment, there exists a default in the payment of any Senior Obligations (a "Senior Payment Default"), and such Senior Payment Default shall not have been cured or waived by or on behalf of the holders of such Senior Obligations. In addition, during the continuance of the breach of any provision in Article VII of the Senior Credit Agreement ("Financial Covenant Default"), upon the giving by the Senior Administrative Agent of written notice to the Administrative Agent of such breach, no such payment may be made by the Borrower upon the Obligations for a period (the "Blockage Period") commencing on the date of the giving of such notice and ending 180 days after the date of the giving of such notice. Not more than one Blockage Period may be commenced with respect to the Obligations during any period of 360 consecutive days. No Financial Covenant Default which existed or was continuing on the date of commencement of any Blockage Period shall be, or be made, the basis for commencement of a second Blockage Period whether within or without a period of 360 consecutive days unless such Financial Covenant Default shall have been cured for a period of not less than 30 consecutive days or waived. During any period in which payments on the Obligations are not restricted pursuant to this Section 10.02, the holders of the Obligations shall be entitled to receive payments in accordance with the terms of the Obligations, including any payments that were previously restricted in accordance with this Section 10.02. -95-
Payment Blockage. May Not Be Impaired by Parent. No right of any holder of Bank Indebtedness to enforce the payment blockage of the Obligations of Parent shall be impaired by any act or failure to act by Parent or by its failure to comply with this Indenture.
Payment Blockage. No payment or distribution shall be made on account of any Trident Debt, except for current interest at the non-default rate, or in respect of any redemption, retirement, purchase or other acquisition by the Company of any Trident Debt, at any time during which FEQ shall have notified Trident that any FEQ Debt shall have been declared due and payable prior to or upon its stated final maturity or otherwise and remains unpaid.