Terminated Subsidiary Borrower Clause Samples
The 'Terminated Subsidiary Borrower' clause defines the status and implications for a subsidiary that ceases to be a borrower under a loan agreement. Typically, this clause outlines the conditions under which a subsidiary's borrowing rights are revoked, such as repayment of outstanding obligations or a change in corporate structure. It may also specify the process for notifying the lender and the effects on guarantees or collateral. The core function of this clause is to clarify the rights and responsibilities of both the lender and the subsidiary when the subsidiary is no longer part of the borrowing group, thereby ensuring legal and financial clarity.
Terminated Subsidiary Borrower. Upon the occurrence of a Subsidiary Borrower Termination Event with respect to any Subsidiary Borrower, such Subsidiary Borrower (a “Terminated Subsidiary Borrower”) shall cease to be a Borrower for purposes of this Agreement and shall no longer be entitled to request or borrow Advances hereunder. All outstanding Advances of a Terminated Subsidiary Borrower shall be automatically due and payable as of the date on which the Subsidiary Borrower Termination Event of such Terminated Subsidiary Borrower occurred, together with accrued interest thereon and any other amounts then due and payable by that Borrower hereunder, unless, in the case of a Subsidiary Borrower Termination Event described in paragraph (iv) of Section 2.22(c), the other Person party to the transaction is a Borrower and such other Borrower has assumed in writing all of the outstanding Advances and other obligations under this Agreement and under the Notes, if any, of the Terminated Subsidiary Borrower.
Terminated Subsidiary Borrower. Upon the occurrence of a Subsidiary Borrower Termination Event with respect to any Subsidiary Borrower, such Subsidiary Borrower (a “Terminated Subsidiary Borrower”) shall cease to be a Borrower for purposes of this Agreement and shall no longer be entitled to request or