Indenture Default Clause Samples

An Indenture Default clause defines the specific events or conditions that constitute a default under a bond indenture agreement. Typically, this clause outlines scenarios such as missed interest or principal payments, breaches of covenants, or insolvency events that trigger a default status. By clearly specifying what actions or omissions are considered defaults, the clause provides a framework for bondholders and trustees to take remedial actions, such as accelerating repayment or enforcing security interests, thereby protecting the interests of investors and ensuring accountability from the issuer.