Default by Borrowers Sample Clauses
The "Default by Borrowers" clause defines the circumstances under which a borrower is considered to have failed to meet their obligations under a loan or credit agreement. Typically, this clause outlines specific events such as missed payments, insolvency, or breaches of covenants that constitute a default. When a default occurs, the lender may have the right to demand immediate repayment, impose penalties, or take other remedial actions. The core function of this clause is to protect the lender by clearly specifying what constitutes a default and the consequences, thereby managing risk and ensuring both parties understand the triggers for enforcement actions.
POPULAR SAMPLE Copied 1 times
Default by Borrowers. Any failure of Borrowers to comply with the terms of this §5.5 shall be an Event of Default, and shall entitle Agent to pursue any and all remedies available to it pursuant to this Agreement, any other Loan Document, at law or in equity. Without limiting the foregoing, upon the occurrence and during the continuation of an Event of Default, Agent shall have the right, but not the obligation, without notice or demand on Borrowers: (i) to withdraw any or all of the Escrow Funds and to disburse and apply the same, after deducting all costs and expenses of safekeeping, collection and delivery (including, but not limited to, attorney fees, costs and expenses) to the Obligations hereunder or under any Loan Document in accordance with §12.5; (ii) to complete any such acts, in the Borrowers’ stead, in such manner and to the extent Agent deems necessary to fulfill the purpose of this Agreement or the other Loan Documents; (iii) to exercise any and all rights and remedies of a secured party under any applicable Uniform Commercial Code; and (iv) to exercise any other remedies available at law or in equity. No such use or application of the Escrow Funds shall be deemed to cure any Event of Default. Any disbursement made by Agent shall continue to be part of the Loan and secured by the Loan Documents. No further direction or authorization from Borrowers shall be necessary to warrant such direct disbursement by Agent and all such disbursements shall satisfy the obligation of Agent hereunder and shall be secured by the Loan Documents as fully as if made directly to Borrowers.
Default by Borrowers. If an Event of Default exists, Guarantor shall pay to Administrative Agent, any and all amounts then due and payable under this Guaranty on demand and without (a) further notice of dishonor, to Guarantor, (b) any prior notice to Guarantor of the acceptance by Administrative Agent of this Guaranty, (c) any notice having been given to Guarantor prior to such demand of the creating or incurring of such Indebtedness, or (d) notice of intent to accelerate or notice of acceleration to Guarantor or Borrowers. To enforce such payment by Guarantor it shall not be necessary for Administrative Agent to first or contemporaneously institute suit or exhaust remedies against any Borrower or others liable on such Indebtedness, or to enforce rights against any security or collateral ever given to secure such Indebtedness.
Default by Borrowers. Subject to any applicable cure periods, if an event of default occurs under any agreements between Secured Party and Borrowers.
Default by Borrowers. Unless the Administrative Agent shall have received notice from Borrowers prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that Borrowers will not make such payment, the Administrative Agent may assume that Borrowers have made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if Borrowers have not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.