Moratorium Agreement Clause Samples
A Moratorium Agreement is a contractual provision that temporarily suspends certain rights or obligations between parties, often in the context of debt repayment or enforcement actions. In practice, this clause may halt a lender's ability to pursue legal remedies or collect payments for a specified period, giving the borrower time to reorganize finances or negotiate new terms. Its core function is to provide breathing space and prevent immediate escalation, helping parties avoid litigation or default while seeking a mutually agreeable solution.
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Moratorium Agreement. The Company had on 20 January 2021, entered into a moratorium agreement with JMO Pte. Ltd, (the “Lender”) (the “Moratorium Agreement”) for the New Loan Agreement to extend the Maturity Date of the Loan to the date falling 12 months from 19 October 2020, or the date falling fifteen (15) working days from the date of the successful lifting of the trading suspension of the Company, whichever is earlier (the “Moratorium”). If the potential investor referenced in the announcement dated 13 November 2020 (the “Potential Investor”) fails to perform its duties and obligations under the deal between the Lender and the Potential Investor (the “Deal”) (i.e., making scheduled payments under the payment schedule), the Moratorium granted shall lapse and be revoked and the Moratorium Agreement shall terminate immediately and automatically. The Company is also informed that as a condition within the Deal, the Lender is not to call default on the loan under any circumstances before the receipt of the 2nd payment, which is due on the date falling 12 months from 19 October 2020, or the date falling fifteen (15) working days from the date of the successful lifting of the trading suspension of the Company, whichever is earlier.