Ipso Facto Sample Clauses
An Ipso Facto clause is a contractual provision that allows one party to terminate or modify the agreement automatically if a specific event occurs, typically the insolvency or bankruptcy of the other party. In practice, this means that if a party files for bankruptcy or enters receivership, the other party can end the contract or alter its terms without needing further consent or legal action. The core function of this clause is to protect parties from being bound to contracts with insolvent counterparties, thereby managing risk and providing a clear exit mechanism in the event of financial distress.
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Ipso Facto. All agreements herein made are expressly limited so that in no event whatsoever, whether by reason of advancement of proceeds hereof, acceleration of maturity of the unpaid balance hereof or otherwise, shall the amount paid or agreed to be paid to Holder for the use of the money advanced or to be advanced hereunder exceed the maximum rate allowed under applicable law (the “Maximum Rate”). If, from any circumstances whatsoever, the fulfillment of any provision of this Note or any other agreement or instrument now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby shall involve the payment of interest in excess of the Maximum Rate, then, ipso facto, the obligation to pay interest hereunder shall be reduced to the Maximum Rate; and if from any circumstance whatsoever, Holder shall ever receive interest, the amount of which would exceed the amount collectible at the Maximum Rate, such amount as would be excessive interest shall be applied to the reduction of the principal balance remaining unpaid hereunder and not to the payment of interest. This provision shall control every other provision in any and all other agreements and instruments existing or hereafter arising between the Company and Holder with respect to the indebtedness evidenced hereby.