Defaulting Borrower Sample Clauses
The 'Defaulting Borrower' clause defines the circumstances under which a borrower is considered to be in default under a loan agreement. Typically, this clause outlines specific events or failures—such as missed payments, insolvency, or breaches of covenants—that trigger default status. Once a borrower is deemed to be in default, the lender may have the right to accelerate repayment, impose penalties, or take other remedial actions. The core function of this clause is to clearly establish what constitutes a default, thereby protecting the lender and providing a framework for addressing borrower non-compliance.
Defaulting Borrower. If a Borrower (a “Defaulting Borrower”) shall have failed to make a Reimbursement Contribution as hereinabove provided, after the later to occur of (a) payment of the Loan in full and the satisfaction of all of all Borrowers’ other obligations to Lender and after payment in full by the Mortgage Borrower of the Mortgage Loan and payment in full by the Mezzanine Borrowers of the Mezzanine Loans or (b) the date which is 366 days after payment in full of the Loan, the Funding Borrower to whom such Reimbursement Contribution is owed shall be subrogated to the rights of Lender against such Defaulting Borrower, including the right to receive a portion of such Defaulting Borrower’s Collateral or assets in an amount equal to the Reimbursement Contribution payment required hereunder that such Defaulting Borrower failed to make; provided, however, if Lender returns any payments in connection with a bankruptcy of a Borrower, all other Borrowers shall jointly and severally pay to Lender all such amounts returned, together with interest at the Default Rate accruing from and after the date on which such amounts were returned. For avoidance of doubt, until such time as the Loan, the Mortgage Loan and the Mezzanine Loans are indefeasibly paid in full and satisfied, each of the Borrowers hereby subjects and subordinates to payment of the Loan to the Lender and to payment of distributions to its Member (in accordance with the Cash Management Agreement) any and all rights of such Borrower under this Article XV, including its right to Reimbursement Contribution, and waives any right of subrogation such Funding Borrower may have with respect thereto.