Subsidiary Borrower Termination Event Clause Samples
A Subsidiary Borrower Termination Event clause defines the circumstances under which a subsidiary that has borrowed under a loan agreement ceases to be a borrower. Typically, this clause outlines specific events or conditions—such as repayment of all outstanding obligations, breach of certain covenants, or a change in ownership—that trigger the termination of the subsidiary's borrowing status. Its core practical function is to provide clear guidelines for when a subsidiary's rights and obligations as a borrower end, thereby managing risk and ensuring clarity for all parties involved.
Subsidiary Borrower Termination Event. The occurrence of any of the following events with respect to any Subsidiary Borrower shall constitute a “Subsidiary Borrower Termination Event” with respect to such Subsidiary Borrower:
Subsidiary Borrower Termination Event. The occurrence of any of the following events with respect to any Subsidiary Borrower shall constitute a “Subsidiary Borrower Termination Event” with respect to such Subsidiary Borrower:
(i) such Subsidiary Borrower ceases to be a Subsidiary;
(ii) such Subsidiary Borrower is liquidated or dissolved;
(iii) such Subsidiary Borrower fails to preserve and maintain its existence;
(iv) such Subsidiary Borrower merges or consolidates with or into another Person, or conveys, transfers, leases, or otherwise disposes of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to any Person (except that a Subsidiary Borrower may merge into or dispose of assets to another Borrower);
(v) any of the “Events of Default” described in Section 6.1 (a) through (f) occurs to or with respect to such Subsidiary Borrower as if such Subsidiary Borrower were “TBC”; or
(vi) the Guaranty with respect to such Subsidiary Borrower ceases, for any reason, to be valid and binding on TBC or TBC so states in writing.