Remedies of the Trustee and Securityholders On Clause Samples

The "Remedies of the Trustee and Securityholders" clause defines the actions that the trustee and securityholders can take if there is a default or breach under the agreement. Typically, this clause outlines the specific rights and procedures available, such as the ability to accelerate payments, initiate legal proceedings, or enforce the security interests provided by the agreement. For example, if the issuer fails to make required payments, the trustee may be empowered to act on behalf of all securityholders to recover the owed amounts. The core function of this clause is to provide a clear and structured process for addressing defaults, thereby protecting the interests of securityholders and ensuring that remedies are available in the event of non-compliance.