Debtor Default Clause Samples

Debtor Default. Any of the following shall be an event of Debtor default under this Agreement: SECTION 4.1. Failure of Debtor to pay any of the Obligations when due. SECTION 4.2. Failure of Debtor to perform any obligation under this Agreement. SECTION 4.3. Making false statements to the Secured Parties, or withholding any information with the intent to deceive the Secured Parties. SECTION 4.4. Loss, theft, damage or destruction, levy, seizure, or attachment of any of the Collateral, unless such Collateral is either (i) fully covered by insurance, or (ii) replaced as Collateral by property of equal or greater value, or unless (iii) any such levy, seizure, or attachment is released or dissolved within three days after it is made. SECTION 4.5. A change in the financial or other condition of Debtor or the Collateral such that in the Secured Parties’ opinion the Secured Parties’ risks are increased or the value or security of the Collateral is impaired. SECTION 4.6. Debtor’s dissolution or termination of existence, or insolvency of Debtor; or Debtor’s inability to pay its debts as they mature; or the appointment of a receiver of any property of Debtor; or Debtor’s filing of a voluntary petition in bankruptcy; or the adjudication of Debtor as a bankrupt; or any transfer, without prior written consent by the Secured Parties, of a substantial part of Debtor’s property.

Debtor Default. 18 6.2 Scheduled Affiliate Default..................................................................... 19 6.3 Other Defaults of Debtor and Other Liable Parties............................................... 19

Debtor Default. (1) Subject to the legal existence of the Receivable, the Factor shall bear the risk of realisation of Event of Debtor Default (Delkredererisiko) for the Receivable it purchased. (2) Upon the realisation of an Event of Debtor Default, the following shall apply irrespective of the provision of Art. 5 (1) sentence 6: a) If Factor has already paid the Purchase Price to the Client for the Receivable affected by the realisation of an Event of Debtor Default, the Client shall first be obliged to repay an amount equal to the VAT component forming part of the Receivable. b) The Factor shall issue to the Client a Debtor Default receipt (Dekrederebeleg), on the basis of which the Client must claim a VAT refund from the tax authorities due to the defaulted Receivable. If the tax authorities justifiably refuse to refund the VAT, the Factor shall be obliged to pay the VAT component.

Debtor Default. (i) Debtor's failure to make any payment when due under this Security Agreement, the Note, any Loan Document or any Obligations or Debtor's disclaimer of liability under or enforceability of any Loan Document; (ii) the non-renewal or termination of the Principal Agreements; or (iii) Debtor's default under, failure to perform or observe any covenant or condition of or agreement in, or breach of, or making of a material inaccuracy in or omission from, any representation or warranty under or in, this Security Agreement, the Note, any other Loan Document, the Principal Agreements or the License, any financial or other statement delivered to Secured Party or any Contractual Obligations in connection with any Permitted Encumbrance, and (in the case of (iii) only) such default, failure, breach, inaccuracy or omission shall continue unremedied for the earliest of (a) five days following the date that notice of such default, failure, breach, inaccuracy or omission is given to Debtor by Secured Party, (b) five days following the date ("Discovery Date") that Debtor first obtains -------------- knowledge of such default, failure, breach, inaccuracy or omission, or (c) in the case of any Permitted Encumbrance or lease for the Property, the occurrence of such event (or, if there exists an applicable cure period, the expiration of such cure period); provided, that, no such five (5) day period (or cure period) shall apply in the case of. (x) any failure to observe any such term, covenant, condition or provision which is not capable of being cured at all or within such five (5) day period or which has been the subject of a prior failure within a six (6) month period or (y) an intentional breach by Debtor or any Obligor of any such term, covenant, condition or provision, or (z) the failure to observe or perform any of the covenants or provisions contained in Sections 2.5, 2.15, 2,17, 2.18, 2.19, 2.20, 2.21, 2.27, 2.28, 2.29, and 2.32 of this Security Agreement; or