Upon an Event of Default Clause Samples
The 'Upon an Event of Default' clause defines the rights and actions available to a party when the other party fails to meet key obligations under the agreement, such as missing payments or breaching material terms. Typically, this clause outlines the specific events that constitute a default and details the remedies available, which may include accelerating payment obligations, suspending services, or terminating the contract. Its core function is to provide a clear framework for addressing breaches, thereby protecting the non-defaulting party and ensuring that both sides understand the consequences of non-compliance.
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Upon an Event of Default. If any Event of Default shall have occurred and be continuing, then, and in any such event, the Administrative Agent may, and upon written instructions from the Majority Banks, shall, (i) by notice to the Company declare all Tender Advances and all interest accrued thereon and all other amounts due hereunder immediately due and payable and, upon such declaration, the same shall become and be immediately due and payable (provided that, upon the occurrence of any Event of Default under Section 6.01(e), all such amounts shall automatically become and be immediately due and payable) without diligence, presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company, (ii) give written notice to the Trustee as contemplated in the applicable Indenture, that an Event of Default has occurred with directions for either a mandatory tender or acceleration of all Bonds currently outstanding, (iii) by notice sent to the Company, require the immediate deposit of cash collateral in an amount equal to the Maximum Credit Amount for all Letters of Credit and all unpaid Tender Advances, and the same shall thereupon become and be immediately due and payable by the Company; provided, however, that the Administrative Agent shall cause such cash collateral to be deposited in a separate account which shall not be debited to make any payment directly to a beneficiary of a Letter of Credit pursuant to a draw by such beneficiary under such Letter of Credit, and (iv) pursue all remedies available to it at law, by contract, at equity or otherwise, including all remedies under the Pledge Agreement and the Control Agreements. The Company hereby pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Banks and any L/C Issuer, a security interest in all of the Company’s right, title and interest in and to all funds which may from time to time be on deposit in such cash collateral account to secure the prompt and complete payment and performance of the Company’s obligations hereunder (including, without limitation, any and all Reimbursement Obligations and any other amounts as shall become due and payable by the Company to the Banks or any L/C Issuer under this Agreement, the Pledge Agreement or any Control Agreement), and the Administrative Agent may at any time or from time to time after funds are deposited in the such cash collateral account, apply such funds to the payment of any such obligations. Al...
Upon an Event of Default. If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing greater than fifty percent (50%) of the total LC Exposure) demanding the deposit of Cash Collateral pursuant to this paragraph, the Borrower shall deposit Cash Collateral in an interest bearing account with the Agent in an amount equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such Cash Collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default described in Section 7.1(d) or (e) of this Agreement. Such deposit shall be held by the Agent as Collateral for the payment and performance of the obligations of the Borrower under this Agreement. The Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such deposit. Other than any interest earned on the interest-bearing account or on any investment of such deposits, which investments shall be made at the option and sole discretion of the Agent and at the Borrower’s risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders with LC Exposure representing greater than fifty percent (50%) of the total LC Exposure), be applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount of Cash Collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default have been cured or waived.
Upon an Event of Default the non-defaulting Party may cancel this Agreement and may pursue such legal and equitable remedies as may be available.
Upon an Event of Default. If an Event of Default shall have occurred and be continuing with respect to a Defaulting Party, the other Party (the "Non-Defaulting Party") shall, at its sole discretion, have the right to take one or more of the following actions: (a) terminate this Agreement by declaring a date for its
Upon an Event of Default. Upon the occurrence of an Event of Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower:
Upon an Event of Default. Upon the occurrence and during the continuance of an Event of Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower, (a) declare the principal of and interest on the Loans and the other Obligations (except for Hedging Obligations, which shall be governed by the terms and conditions of the documents controlling such obligations) at the time outstanding, and all other amounts owed to the Lenders and to the Administrative Agent under this Agreement, to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived, anything in this Agreement to the contrary notwithstanding, and (b) terminate the Aggregate Commitments and any right of the Borrower to request Loans hereunder; provided that upon the occurrence of an Event of Default specified in Section 6.01(e), the Aggregate Commitments shall be automatically terminated and all Obligations (except for Hedging Obligations, which shall be governed by the terms and conditions of the documents controlling such obligations) shall automatically become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived, anything in this Agreement or in any other Loan Document to the contrary notwithstanding.
Upon an Event of Default. Holder shall have the right, ------------ without demand or notice, to declare the entire principal amount of this Note then outstanding, all accrued and unpaid interest thereon and all other sums required under this Note or the Security Agreement to be immediately due and payable and, notwithstanding the stated maturity in this Note, all such sums declared due and payable shall thereupon become immediately due and payable. During the existence of such Event of Default, Holder may apply payments received on any amounts due under this Note or the Security Agreement as Holder may determine in its sole discretion.
Upon an Event of Default. The appointment of Bank as Borrower's attorney in fact, and each and every one of Bank's rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully repaid and performed and Bank's obligation to provide advances hereunder is terminated.
Upon an Event of Default. If any Event of Default shall have occurred and be continuing, the Bank may, by notice to the Corporation and the Issuing and Paying Agent,
(i) issue a No-Issuance Notice, (ii) issue the Final Drawing Notice (the effect of which shall be to cause the Termination Date of the Letter of Credit to occur on the 15th day after the date of receipt thereof by the Issuing and Paying Agent, subject to the timing set forth in Section 3.3 hereof),
Upon an Event of Default. Upon the occurrence of an Event of Default, MSA may, but shall not be required to:
(a) Immediately suspend all reimbursements to the School Board under this MOU and thereafter only make such reimbursements to the School Board to the extent the remaining Total Project Cost for a Project is less than the remaining total of the Maximum State Funding Allocation and the Local Share for such Project, as determined by MSA in its sole discretion; and/or
(b) Assume responsibility for the coordination and management of one or all of the Projects. The School Board shall cooperate fully in connection with such assumption, including by executing and delivering, and causing all contractors and consultants to execute and deliver, all assignments and other documents reasonably required by MSA in connection with such assumption. The School Board shall make, or cause to be made by the County on its behalf, deposits into the Facilities Fund sufficient to pay the remaining Local Share of Eligible Project Costs for each Project assumed by MSA in accordance with a schedule determined by MSA in its reasonable discretion. The assumption of responsibility for the coordination and management of a Project by MSA shall neither increase the Maximum State Funding Allocation for such Project nor increase the Maximum BTL Program Allocation for such Project or otherwise encumber BTL Program Funds in excess of the Maximum BTL Program Funding Allocation for such Project. If MSA determines that the Maximum State Funding Allocation and the portions of the Local Share deposited by or on behalf of the School Board for a Project will not be sufficient to pay for all remaining Eligible Project Costs for such Project, MSA shall notify the School Board, the School Board shall be solely responsible for obtaining funding of all additional costs as an increase in the Local Share, and the schedule for deposit of the Local Share shall be revised accordingly.