Automatic Continuation and Conversion Clause Samples
The "Automatic Continuation and Conversion" clause establishes that a contract or agreement will automatically renew or convert into a different form under specified conditions, without requiring further action from the parties involved. For example, a fixed-term lease might automatically continue on a month-to-month basis unless either party gives notice, or a convertible note may automatically convert into equity upon a triggering event like a financing round. This clause ensures continuity and predictability in contractual relationships, reducing administrative burdens and preventing unintended lapses or gaps in coverage.
Automatic Continuation and Conversion. Unless a Eurodollar Borrowing is repaid as provided herein, at the end of the Interest Period applicable thereto such Borrowing shall be automatically continued as a Eurodollar Borrowing, unless any of the circumstances described in Section 2.11 exist, in which case such Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of such Interest Period. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Senior Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.
Automatic Continuation and Conversion. If an Interest Election Request with respect to a Eurodollar Borrowing is not timely delivered prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be continued as a Eurodollar Borrowing with a one (1) month Interest Period unless there exists an Event of Default, in which case such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing, the Administrative Agent or the Required Lenders may require, by notice to the Borrower, that (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.