Unable to Pay Debts Clause Samples

The 'Unable to Pay Debts' clause defines the circumstances under which a party is considered insolvent or unable to meet its financial obligations. Typically, this clause outlines specific indicators such as failure to pay debts as they become due, entering into bankruptcy proceedings, or having a receiver appointed over assets. Its core practical function is to provide a clear trigger for certain contractual rights or remedies, such as termination or acceleration of obligations, when a party's financial instability poses a risk to the agreement.
POPULAR SAMPLE Copied 1 times
Unable to Pay Debts. The admission in writing by Borrower or Guarantor that it is unable to pay its debts as they mature or that it is generally not paying its debts as they mature;
View SourceView Similar (17)
Unable to Pay Debts. The Borrower is unable to pay its debts as they fall due, commences negotiations with any one or more of its creditors with a view to the general readjustment or rescheduling of its indebtedness or makes a general assignment for the benefit of or a composition with its creditors.
View SourceView Similar (9)
Unable to Pay Debts the Borrower shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;
View Source
Unable to Pay Debts the Borrower or any Material Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;
View Source
Unable to Pay Debts any Loan Party shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;
View Source

Related to Unable to Pay Debts

  • Inability to Pay Debts The Borrower or any Restricted Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

  • Inability to Pay Debts; Attachment (i) Any Loan Party or any Subsidiary thereof becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within 30 days after its issue or levy; or

  • Debts Each party agrees to be separately liable for his or her debts incurred prior to the marriage. During the course of the marriage, both parties shall be responsible for any expenses incurred for the basic necessities of life, such as food, basic clothing needs, shelter, and medical care. With respect to credit card accounts, each party shall retain separate credit card accounts for his or her respective use, if desired.

  • No Insolvent Obligors As of the Cut-off Date, no Obligor on a Receivable is shown on the Receivable Files as the subject of a bankruptcy proceeding.

  • No Bankrupt Obligors As of the Cutoff Date, no Receivable was due from an Obligor that was the subject of a proceeding under the Bankruptcy Code of the United States.