Waiver of Potential Defaults and Events of Default Clause Samples

The Waiver of Potential Defaults and Events of Default clause allows one party, typically the lender or counterparty, to formally relinquish its right to enforce certain defaults or potential defaults under the agreement. In practice, this means that if the borrower or obligor has failed to meet specific obligations or is at risk of doing so, the other party may agree not to treat these failures as triggering default remedies, either for a specified period or under certain conditions. This clause is essential for providing flexibility in the relationship, as it can prevent automatic enforcement actions and give the defaulting party time to remedy issues, thereby maintaining the continuity of the agreement and avoiding unnecessary acceleration or termination.
Waiver of Potential Defaults and Events of Default 
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Related to Waiver of Potential Defaults and Events of Default

  • Waiver of Defaults and Events of Default (a) The Noteholders of a majority of the Note Balance of the Controlling Class may waive any Default or Event of Default, except an Event of Default (i) in the payment of principal of or interest on any of the Notes (other than an Event of Default relating to failure to pay principal due only by reason of acceleration) or (ii) in respect of a covenant or provision of this Indenture that cannot be amended, supplemented or modified without the consent of all Noteholders. (b) Upon any such waiver, such Default or Event of Default will be deemed not to have occurred for every purpose of this Indenture. No such waiver will extend to any other Default or Event of Default or impair any right relating to any other Default or Event of Default.