Bank Default Clause Samples
The Bank Default clause defines the consequences and procedures that apply if a bank involved in a transaction fails to meet its obligations, such as payment or delivery of funds. Typically, this clause outlines the steps to be taken in the event of a default, which may include notifying the parties, suspending further obligations, or triggering remedies like termination or replacement of the defaulting bank. Its core practical function is to allocate risk and provide a clear process for managing the fallout from a bank's failure, thereby protecting the interests of the other parties involved.
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Bank Default. Upon the occurrence of any of the following events, the Bank shall be deemed to have committed a “Bank Default” and the Joint Venture shall be entitled to terminate this Agreement by giving written notice to the Bank, such notice to take effect at the end of the applicable Run-Off Period:
(a) without prejudice to Section 15.3(c), the Bank defaults in the performance of any of the Bank Services hereunder or any of its other obligations under this Agreement (unless such default or failure in performance is caused by the Joint Venture or GPN or any Person acting on their respective behalves or by a Card Association or Network Organisation) and a corrective action plan is not implemented and effective to cure such default during the 120 day period after notice and demand for cure has been given by the Joint Venture to the Bank (except that such period shall be extended to the extent that there shall be a Force Majeure Event which prevents the Bank from curing the default) and provided that the default has a material adverse effect on the Merchant Acquiring Business relative to either the Joint Venture’s rolling twelve month earnings prior to the occurrence of the default or the Joint Venture’s total asset value as stated in the accounts at the end of the month prior to the occurrence of the default. Notwithstanding the foregoing except for a breach of a Bank Critical Service Level which is set forth in Section 15.3(c) no breach of a Bank Service Level hereunder shall constitute a Bank Default;
(b) if a default as described in Section 15.3(a) occurs which default would have resulted in a Bank Default had the Bank not cured the default (the “Relevant Default”) and subsequently two further Bank defaults arise out of the same facts and circumstances no less than 120 days but no more than 4 years after notice and demand for cure has been given by the Bank in relation to the Relevant Default, if the Relevant Default and each of the two other Bank defaults has a material adverse effect on the Merchant Acquiring Business relative to either the Joint Venture’s rolling twelve month earnings prior to the occurrence of the default or the Joint Venture’s total asset value as stated in the accounts at the end of the month prior to the occurrence of the default;
(c) notwithstanding any Force Majeure Event, the Bank fails to:
(i) debit or credit a material number of the Merchant Depository Accounts (based on the portfolio as a whole) in accordance with Section 4.1(b) (Accepta...
Bank Default. Letter of Credit Requests; Notices of Issuance . . . . . . . . . 11 2.04
Bank Default. Neither Cantix nor any of its Subsidiaries is in default under any loan facilities to which it is a party, including, but not limited to, facility bank loans with Agriculture Bank of China, Wuhan Finance Bureau and Wuhan Pan-Asian.
Bank Default. If an Event of Default occurs under the Bank Agreement (“Bank Agreement Default”) which remains uncured and un-waived; provided that any subsequent cure or waiver of such Bank Default shall be deemed to be a cure or waiver for purposes of a cross default hereunder unless Lender has already commenced its right or remedies hereunder.
Bank Default. In the event a Bank Default exists, the Letter of Credit Issuer shall not be required to issue any Letter of Credit unless the Letter of Credit Issuer has entered into arrangements satisfactory to it and the Borrower ("Section 2.02 Arrangements") to eliminate the Letter of Credit Issuer's risk with respect to the participation in Letters of Credit of the Defaulting Bank or Banks, including by cash collateralizing such Defaulting Bank's or Banks' Percentage of the Letter of Credit Outstandings.
Bank Default. (a) If any Bank Default occurs with respect to any Bank or any Canadian Lending Bank, (i) the Agent and such Bank or Canadian Lending Bank agree, if requested by the Company, to attempt to locate a commercial bank or other financial institution that desires to accept the assignment of the Loans, L/C Participations, Canadian L/C Participations, Commitment and Canadian Commitment of such Bank or Canadian Lending Bank and its other rights and obligations hereunder relating thereto and (ii) if such a bank or institution is located, such Bank and Canadian Lending Bank each agrees to assign its interest in its Loans, L/C Participations, Canadian L/C Participations, Commitment, Canadian Commitment and Note, if any, and its other rights and obligations hereunder relating thereto to such bank or institution in accordance with Section 13.08(a) for an amount equal to the aggregate amount owing to such Bank or Canadian Lending Bank under this Agreement and such Bank's or Canadian Lending Bank's Note, if any, at the time of such assignment (including the aggregate principal amount of such Bank's or Canadian Lending Bank's Loans and such Bank's Borrowing Percentage, or such Canadian Lending Bank's Canadian Borrowing Percentage, of Drawings with respect to which it has made its required payments under Section 4.04(a), accrued interest, and all fees and other amounts accrued or payable to such Bank or Canadian Lending Bank). If no such assignment is arranged and no Default exists, the Company may, upon ten days' prior notice to such Bank or Canadian Lending Bank, terminate such Bank's Commitment or such Canadian Lending Bank's Canadian Commitment and thereupon promptly prepay such Bank's and such Canadian Lending Bank's Loans, Notes and all other amounts payable to such Bank and Canadian Lending Bank hereunder with respect to its Loans, L/C Participations, Canadian L/C Participations, Commitment and Canadian Commitment and cash collateralize its L/C Participations and Canadian L/C Participations; provided that prepayments of Fixed Rate Loans may be made on the last day of the applicable Interest Periods.
(b) If, as a result of the existence of a Bank Default with respect to any Bank or Canadian Lending Bank, an Issuing Bank elects not to issue any Letter of Credit that it has been requested to issue in accordance with Section 4.01(a), or the Belgian Lending Bank elects not to make any Revolving Loan that is a Belgian Loan that it has been requested to make pursuant to Sec...
Bank Default. The Company must promptly, inform the Investor of the occurrence of any "Payment Default" (a, "Bank Event of Default") as such term is defined in the Business Loan Agreement by and between Bank of Alameda and Diversified Risk dated as of the date hereof (along with the documents executed along with such Business Loan Agreement, the "Bank of Alameda Loan Agreement"). The Investor may then deliver a notice (such notice, a "Bank Default Notice") informing the Company that that the Investor intends to cure Event of Default, such notice to be delivered as soon as possible, but in any event within five (5)
Bank Default. In the event that NOW Solutions does not have sufficient funds to repay the bank debts or any line of credit, and a call is made against the LC or guarantor, then the equity positions at the time of the cash call will remain the same until all bank debts are brought current by NOW Solutions.