Default on Promissory Note Clause Samples
The "Default on Promissory Note" clause defines what constitutes a default by the borrower under the terms of a promissory note. Typically, this clause outlines specific events such as failure to make scheduled payments, insolvency, or breach of other obligations as triggers for default. When a default occurs, the lender may have the right to demand immediate repayment of the outstanding balance, impose late fees, or take legal action to recover the debt. This clause serves to protect the lender by clearly specifying the circumstances under which they can enforce remedies, thereby reducing uncertainty and managing credit risk.
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Default on Promissory Note. If First New York shall fail to pay the principal amount of the Promissory Note or any accrued interest thereon on the date any such payment is due or within three Business Days after any such due date, then Overstock may proceed to protect and enforce its rights by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in the Promissory Note or otherwise.