Defaults and Recourses Clause Samples
Defaults and Recourses. 7.1 The Grantor will be in default under this Agreement immediately upon the occurrence of any of the following events (each an "EVENT OF DEFAULT"):
7.1.1 if the Grantor is in default under this Agreement; or
7.1.2 if an "Event of Default" (as defined in each of the Exim Loan Agreement and the Non-Exim Loan Agreement) has occurred.
7.2 If an Event of Default shall have occurred which is continuing, the Holder may exercise any and all of the rights and recourses it may have hereunder or by law and it may enforce and realize its hypothec, including the exercise of the hypothecary rights in virtue of the Civil Code of Quebec. The Holder may exercise its hypothecary rights against all or any part of the Hypothecated Property and shall not be bound to exercise the same hypothecary right against all the Hypothecated Property. If the Holder gives the Grantor a prior notice of its intention to exercise a hypothecary right the Grantor shall, and shall cause any other Person in possession of Hypothecated Property to, immediately voluntarily surrender it to the Holder.
7.3 If an Event of Default shall have occurred which is continuing, whichever hypothecary right or rights or other recourses the Holder may decide to exercise, the following provisions shall apply:
7.3.1 if the Hypothecated Property has been surrendered to the Holder or its agent or if the Holder or its agent has possession of the Hypothecated Property, neither the Holder nor its agent shall have any obligation to continue to carry on the Grantor's enterprise or the use, operation or exploitation of the Hypothecated Property or to continue the use for which it is ordinarily destined or to exercise the rights pertaining to the Hypothecated Property or to make it productive; and the Grantor agrees that the Holder or its agent may do such acts and things, or refrain from doing such acts and things, as the Holder or its agent, in its sole discretion, deems appropriate for the exercise of its rights and the realization and enforcement of its hypothec and security;
7.3.2 in order to protect or to realize the value of the Hypothecated Property, the Holder, at the Grantor's expense, may, but shall not be obliged to:
7.3.2.1 continue and complete the processing, manufacture and transformation of the Hypothecated Property or any work in process or unfinished goods comprised in the Hypothecated Property as well as take any other action necessary or useful in order to prepare such property for sale;
7.3.2.2 aliena...
Defaults and Recourses. 7.1 The Grantor will be in default under this Agreement immediately upon the occurrence of any of the following events (each an "EVENT OF DEFAULT"):
7.1.1 if any of the Secured Obligations, including any payment pursuant to the Guaranty, is not paid when due; or
7.1.2 if an "Event of Default" (as defined in each of the Exim Loan Agreement and the Non-Exim Loan Agreement) has occurred; or
7.1.3 if any of the representations made in Section 3 or in any other declaration or certificate by the Grantor delivered to the Holder is untrue or incorrect in a material respect; or
7.1.4 if the Grantor does not perform or observe any of its covenants or undertakings contained in this Agreement or any obligation of the Grantor required by law which is not cured or discharged within five (5) Business Days; or
7.1.5 the dissolution, termination of existence or insolvency of Grantor; or appointment of a receiver, trustee, sequestrator or custodian, for all or any part of the property of, assignment for the benefit of creditors by, or the commencement of any proceeding by Grantor under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect; or
7.1.6 the commencement of any proceeding against Grantor under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect, including under the Bankruptcy and Insolvency Act (Canada), which is not cured by dismissal thereof within sixty (60) days after the date commenced, or
7.1.7 any default or event of default occurs under any obligation secured by a Permitted Lien, which is not cured within any applicable cure period or waived in writing by the holder of the Permitted Lien; or
7.1.8 Grantor breaches any material contract or obligation, which has or may reasonably be expected to have a material adverse effect on Grantor's business or financial condition; or
7.1.9 revocation or termination of, or limitation or denial of liability upon, the Guaranty or any attempt to do any of the foregoing; or
7.1.10 Grantor shall generally not pay its debts as they become due, or Grantor shall conceal, remove or transfer any part of its property, with intent to hinder, delay or defraud its creditors, or make or suffer any transfer of any of its property which may be fraudulent under any bankruptcy, fraudulent conveyance or...
Defaults and Recourses. 7.1 The Customer will be in default under this Agreement in each of the following cases:
(a) if any of the Secured Obligations is not paid when due; or
(b) if any of the representations made in Section 3 or in any other declaration or certificate by the Customer delivered to the Bank is untrue or incorrect in a material respect; or
(c) if the Customer does not perform or observe any of its covenants or undertakings contained in this Agreement or any obligation of the Customer required by law; or
(d) if the Customer is in default under any other agreement, undertaking or evidence of indebtedness in favour of the Bank, including any agreement, undertaking or evidence of indebtedness referred to in Section 1 or Section 9.1, or under any other hypothec or security interest affecting the Hypothecated Property; or
(e) if the Customer ceases to carry on its enterprise, or gives a notice of intention to make a proposal to or makes a proposal to its creditors or makes an assignment for the benefit of its creditors, or becomes insolvent or bankrupt or if any action is commenced or notice given with a view to rendering or declaring the Customer insolvent or bankrupt; or
(f) if any action is taken or notice given by or against the Customer with a view to the winding up, liquidation, reorganization or relief or protection from creditors of the Customer including under the Bankruptcy and Insolvency Act (Canada) or the Companies' Creditors Arrangement Act (Canada); or the Customer amalgamates with any other person; or
(g) if any creditor of the Customer commences any action or gives any notice with a view to exercising any rights or remedies on or with respect to the Hypothecated Property, including by way of seizure, prior notice, notice of crystallization, taking possession or otherwise, or if a sequestrator is appointed; or
(h) if any guarantor of the Secured Obligations, or any part thereof, dies or gives notice to the Bank of termination of a guarantee, or if a default occurs under any other hypothec in favour of the Bank securing all or any part of the Secured Obligations.
7.2 Without limiting the Bank's right to demand payment or to exercise any other right it may have under any other agreement or instrument, if the Customer is in default, any obligation the Bank may have to grant further credit or make further advances to the Customer shall terminate and/or all the obligations of the Customer to the Bank which are not then due shall thereupon be and become forthw...
Defaults and Recourses. The Company shall be in default hereunder upon the occurrence and during the continuance of an Event of Default.
Defaults and Recourses. 1. The Grantor shall be in default in each and every one of the following events:
(a) If any or all of the obligations secured under this deed are not paid when due;
(b) If any of the declarations made in article III is erroneous;
(c) If the Grantor does not fulfill any one of its obligations herein;
(d) If the Grantor is in default under any other contract or agreement with the Bank or any other creditor, or under any other hypothec or security agreement affecting the hypothecated property;
(e) If the Grantor ceases to carry on its business, becomes insolvent or bankrupt; or
(f) If any or all of the hypothecated property is seized or is subject to a legal procedure or a taking of possession by a creditor, a receiver or any other person performing similar functions.
2. If the Grantor is in default, the Bank may terminate any obligation it may have to grant credit or make advances to the Grantor and it may also declare due all obligations of the Grantor which are not yet due. If the Grantor is in default, the Bank may also exercise all recourses conferred on it by law and may realize its hypothec and security interest, notably by exercising the hypothecary rights provided in the Civil Code of Quebec.
3. In order to realize its hypothec and security interest, the Bank may use, at the expense of the Grantor, the premises where the hypothecated property is situated, as well as any other property of the Grantor. Where the hypothecated property includes debts, claims or rights of action, the Bank may compromise or transact with the debtors of these debts or rights of action and may grant releases and discharges thereto. Where the hypothecated property includes inventory, the Bank may complete the manufacture of such inventory and do all things necessary or useful to its sale.
Defaults and Recourses