Mandatory Prepayment; Acceleration Sample Clauses
The "Mandatory Prepayment; Acceleration" clause requires a borrower to immediately repay all or part of a loan under certain specified circumstances, such as the occurrence of a default or the sale of significant assets. In practice, this means that if the borrower breaches key terms of the agreement or triggers specific events outlined in the contract, the lender can demand immediate repayment of outstanding amounts, rather than waiting for the original maturity date. This clause serves to protect the lender by allowing them to recover funds quickly in situations where the borrower's financial position may be compromised, thereby mitigating the lender's risk.
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Mandatory Prepayment; Acceleration. In the event Borrower has not received IND Acceptance on or before December 31, 2015, Borrower shall, on or before January 15, 2016, pay to Bank an amount equal to Two Million Five Hundred Thousand Dollars ($2,500,000) (the “Mandatory Prepayment”), to be applied to reduce the outstanding principal balance of the Term Loan, which amount shall be applied to the remaining Term Loan Payments in inverse order of maturity. Such Mandatory Prepayment will not be subject to the payment of the Prepayment Premium. In addition, if the Term Loan is accelerated following the occurrence and during the continuance of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of: (i) all outstanding principal and accrued but unpaid interest, plus (ii) the applicable Prepayment Premium, plus (iii) all other sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to any past due amounts
Mandatory Prepayment; Acceleration. Subject to the provisions of the Subordination Agreement, (i) if an Event of Default occurs under Section 11(c) or (d), then the outstanding principal and accrued interest of this Note shall automatically become immediately due and payable, (ii) if any other Event of Default occurs and is continuing, the Holder, by written notice to the Obligor, may declare the principal and accrued interest of the Note to be due and payable immediately, (iii) upon such a declaration, then the outstanding principal and accrued interest of this Note shall become immediately due and payable and (iv) the Holder of the Note may rescind an acceleration and its consequences by written notice to the Obligor if all existing Events of Default have been cured or waived, except nonpayment of principal and accrued interest that has become due solely because of the acceleration, and if the rescission would not conflict with any judgment or decree. Any mandatory prepayment under this Section 5(a) shall include payment of reasonable costs and expenses (including reasonable attorneys' fees and expenses) incurred by the Holder and associated with such prepayment, if any.