Optional Deferral Clause Samples
The Optional Deferral clause allows one or both parties to postpone certain obligations or actions under a contract to a later date. Typically, this clause outlines the conditions under which deferral is permitted, such as requiring written notice or specifying a maximum deferral period. By providing flexibility in the timing of performance, the clause helps parties manage unforeseen circumstances or operational delays without breaching the agreement.
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Optional Deferral. The Issuer may, at its sole discretion, elect to defer (in whole or in part) Distribution which is otherwise scheduled to be paid on a Distribution Payment Date to the next Distribution Payment Date by giving notice (an "Optional Deferral Notice") to the Holders (in accordance with Condition 14 (Notices)) not more than 10 nor less than five Business Days prior to a scheduled Distribution Payment Date.
Optional Deferral. The Company may, at its sole discretion, elect to defer, in whole or in part, any Distribution (including any Arrears of Distribution and any Additional Distribution Amount) which is otherwise scheduled to be paid on a Distribution Payment Date to the immediately following Distribution Payment Date by giving notice (an “Optional Distribution Deferral Notice”), substantially in the form as set forth in Exhibit E, to the Holders and the Trustee not more than 15 nor less than 10 Business Days prior to a scheduled Distribution Payment Date (an “Optional Deferral Event”) and it shall be conclusive and binding on the Holders.
Optional Deferral. Subject to Section 2.03 (Dividend Stopper), and so long as no Event of Default has occurred and is continuing, the Company may (i) defer one or more payments of interest on the ICONs at any time and from time to time for up to five consecutive years, and (ii) subject to Section 2.05 (Alternative Payment Mechanism), may defer one or more payments of interest on the ICONs for up to ten consecutive years; provided, however, that no Optional Deferral Period shall end on a date other than an Interest Payment Date, nor shall any Optional Deferral Period extend beyond the Final Maturity Date. Deferred interest on the ICONs will continue to accrue during any Optional Deferral Period at the then-applicable interest rate, compounded on each Interest Payment Date to the extent permitted by applicable law (“Compounded Interest”). Subject to Section 2.05 (Alternative Payment Mechanism), no interest will be due an payable on the ICONs until the end of an Optional Deferral Period except upon a redemption of the ICONs or the acceleration of the ICONs following an Event of Default during an Optional Deferral Period. With respect to each Optional Deferral Period, the Company shall deliver to the Trustee written notice of any optional deferral pursuant to this clause at least 15 and not more than 30 Business Days prior to the relevant Interest Payment Date (“Deferral Notice”). Upon delivery of any Deferral Notice to the Trustee, such notice shall become irrevocable.
(i) On any Interest Payment Date during an Optional Deferral Period, the Company covenants not to pay any accrued and unpaid interest (including Compounded Interest) on the ICONs except on an Interest Payment Date and except in an aggregate amount for each Interest Payment Date that does not exceed the Eligible Proceeds with respect to such Interest Payment Date raised by the Company in accordance with Section 2.05, except that the Company may pay interest for the current Interest Period from any source of funds. Notwithstanding the foregoing, the Company may pay accrued and unpaid interest on the ICONs from any source on the Maturity Date, the Acceleration Date, or upon the occurrence of a Business Combination.
(ii) Upon payment of all accrued and unpaid deferred interest on the ICONs, the Company may again elect to defer interest as provided in Section 2.02(e), but in no event may any Optional Deferral Period extend beyond the Maturity Date.
Optional Deferral. The Managing Member may, in its sole discretion, determine that a distribution of the Preferred Non-Compounded Accrual Amount shall not be paid on a scheduled Distribution Date for any Fiscal Period.
Optional Deferral. Section 6.4.
Optional Deferral. The right to receive any award under the Program (other than the right to purchase shares pursuant to the Stock Purchase Plan) may, at the request of the Plan Participant, be deferred to such period and upon such terms and conditions as the Program Administrators shall, in their discretion, determine, which may include crediting of interest on deferrals of cash and crediting of dividends on deferrals denominated in shares of Common Stock.
Optional Deferral. The Issuer may, at its sole discretion, elect to defer Distribution which is otherwise scheduled to be paid on a Distribution Payment Date to the next Distribution Payment Date by giving notice (an “Optional Deferral Notice”) to the Securityholders (in accordance with Condition 10) not more than 10 nor less than five Business Days prior to a scheduled Distribution Payment Date if, during the twelve months ending on the day before that scheduled Distribution Payment Date no discretionary dividend, distribution or other discretionary payment has been paid or declared by the Issuer on or in respect of its Junior Securities or its Parity Securities (an “Optional Deferral Event”).