Default Advance definition
Examples of Default Advance in a sentence
If Required Lenders determine to make Line of Credit Default Advances in respect thereof, each Lender shall, on the date of receipt of such notice, make a Line of Credit Default Advance in an amount equal to its Specified Percentage of the aggregate advances to be made, and shall simultaneously make available to the Issuing Lender, in immediately available funds, the proceeds of such Line of Credit Default Advance.
The Default Advance and any interest thereon shall be paid by the Company to the non-Defaulting Member in accordance with Section 5.6(a)(i).
So long as no Event of Default shall have occurred and be continuing under the Senior Loan Documents, subject to the cure rights of the Junior Lenders hereunder and the repayment of any Mortgage Shortfalls and/or any Default Advance Amounts in accordance with this Agreement, all funds held and applied pursuant to the Senior Cash Management Agreement and Senior Loan Agreement, shall continue to be applied in the manner required thereunder prior to the occurrence of an Event of Default under the Senior Loan.
The Default Advance shall bear interest, compounding quarterly, at the Default Interest Rate from the date on which the Default Advance is made until the date that the loan, together with all interest accrued thereon, is repaid to the non-Defaulting Member.
For the avoidance of doubt, in the event Rockpoint makes a Default Advance, Rockpoint shall, at any time, be entitled pursue any and all rights and remedies it may have in law or in equity against the Borrower in the event the Borrower fails to repay to Rockpoint the amount of the Default Advance or fails to pay any interest thereon to Rockpoint when due.
The obligations of each Lender to make such a Line of Credit Default Advance and to remit the proceeds to the Issuing Lender shall be absolute and unconditional, and shall not be affected by any default or Event of Default or any other occurrence or event.
In lieu of making a Default Advance or a Default Contribution, the non-Defaulting Member may request in writing that the Company return the non-Defaulting Member’s Capital Contribution for the applicable Capital Call, and the Company shall do so within five (5) Business Days of the non-Defaulting Member’s written request.