Section 316 Sample Clauses

Section 316 typically refers to a provision that governs the rights of holders of debt securities, such as bonds or notes, in relation to the modification of terms and the enforcement of remedies. In practice, this clause often outlines the procedures by which a majority of security holders can agree to changes in the terms of the securities, such as payment dates or interest rates, and how these decisions bind all holders, including dissenters. It also usually details the process for collective action in the event of default, ensuring that individual holders cannot take unilateral enforcement actions that might disrupt coordinated remedies. The core function of Section 316 is to facilitate efficient and orderly management of debt securities by enabling collective decision-making and preventing fragmented enforcement actions, thereby protecting the interests of both issuers and the majority of security holders.