Procedures on Default Clause Samples
The "Procedures on Default" clause outlines the steps and actions that must be taken when one party fails to fulfill its contractual obligations. Typically, this clause specifies the process for notifying the defaulting party, any grace periods for remedying the default, and the potential consequences if the default is not cured, such as termination of the agreement or imposition of penalties. By clearly defining these procedures, the clause ensures both parties understand their rights and responsibilities in the event of a default, thereby reducing uncertainty and providing a structured approach to resolving breaches.
Procedures on Default. The Mortgage Manager must take such action following the occurrence of an Event of Default, and enforce the Powers (including by taking legal proceedings) in respect of any Defaulting Mortgage in such manner as:
(a) the Mortgage Manager reasonably considers necessary to:
(i) remedy that Event of Default;
(ii) recover the money secured by that Defaulting Mortgage; and
(iii) protect and preserve the rights of the Trustee as mortgagee and the interests of Bondholders under the Trust Deed and Security Trust Deed; and
(b) is required to ensure that any losses suffered in relation to that Mortgage which are, or are required to be insured under a Mortgage Insurance Policy are able to be claimed under that Mortgage Insurance Policy.
Procedures on Default. The Master Servicer must, subject to clause 9.5, take such action following the occurrence of an Event of Default, and enforce the Powers (including by taking legal proceedings) in respect of any Defaulting Mortgage in such manner as:
(a) the Master Servicer reasonably considers necessary to:
(i) remedy that Event of Default;
(ii) recover the money secured by that Defaulting Mortgage; and
(iii) protect and preserve the rights of the Trustee as mortgagee and the interests of Bondholders under the Master Trust Deed and Security Trust Deed; and
(b) is required to ensure that any losses suffered in relation to that Mortgage which are, or are required to be insured under a Mortgage Insurance Policy are able to be claimed under that Mortgage Insurance Policy.
Procedures on Default. The Approved Borrower and the Security Provider must take such action following the occurrence of a Non-Payment Event that Integral Business requires it to take so as to:
(a) cause that Non-Payment Event to be remedied;
(b) recover the money the subject of the Non-Payment Event; and
(c) protect and preserve all of the rights of Integral Business in respect of any applicable Invoice or Designated Debt.