Deficiency Agreement Clause Samples
A Deficiency Agreement is a contractual provision that obligates a party, typically a borrower, to cover any shortfall if the proceeds from the sale of collateral are insufficient to satisfy the full amount owed under a loan or obligation. In practice, this means that after a foreclosure or repossession, if the lender does not recover the total debt from the sale, the borrower must pay the remaining balance. This clause ensures that the lender is protected against losses resulting from inadequate collateral value, effectively allocating the risk of deficiency to the borrower and providing a clear mechanism for recovering outstanding debts.
Deficiency Agreement. Joint and Several Deficiency Agreement executed by the Borrower and the Guarantors agreeing to fund costs not included or in excess of forecasted expenditure.
Deficiency Agreement. The Deficiency Agreement, dated as of the Delivery Date, among SDIQ, the Owner Participant, and the Owner Trustee, pertaining to the Aircraft. Delivery Date: the date on which the Aircraft is delivered and sold by the Seller to the Lessor and leased by the Lessor to the Lessee under the Lease, which date shall also be the date of the initial Lease Supplement.