Common use of Default and Penalties Clause in Contracts

Default and Penalties. The occurrence of any of the following will constitute an Event of Default hereunder: (a) default in the payment of the Principal Amount and the accrued and unpaid Interest in full by the Maturity Date; (b) if: (i) any proceedings are commenced by the Borrower under applicable bankruptcy or insolvency legislation (including a proposal or notice of intention to commence proceedings; (ii) the Borrower commits an act of bankruptcy; (iii) the Borrower becomes insolvent or bankrupt or makes an authorized assignment pursuant to applicable bankruptcy or insolvency legislation; or (iv) a bankruptcy petition is filed by or presented against the Borrower and remains undischarged or unstayed for a period of 30 days.