Deficiency Note definition

Deficiency Note has the meaning specified in Section 8.03(m).

Split View

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Get StartedSchedule a Demo

Deficiency Note shall have the meaning assigned to it in Section 10(a)(ii).

Deficiency Note the promissory note dated August 16, 1999, by the --------------- Borrower in favor of BofA in an aggregate principal amount equal to $26,485,562.79 which, among other things (i) provides for the payment of interest thereon at a rate equal to the interest rate from time to time in effect with respect to the Revolving Credit Loans, (ii) has a tenor equal to that of the Revolving Credit Loans, (iii) provides that the loans thereunder may only be accelerated by BofA (A) upon a failure to pay principal and interest due thereon or (B) if the Loans are declared to be, or automatically become, due and payable in accordance with Section 8, (iv) does not contain any financial or operating covenants with respect to the Borrower or any of its Subsidiaries, (v) is not assignable by BofA unless contemporaneous with any assignment thereof BofA shall assign all of the remaining Loans and Commitments held by it at such time to the assignee of the Deficiency Note, (vi) provides that any amendments, supplements, modifications, extensions or forebearances of the Revolving Credit Loans or the Revolving Credit Commitments shall be equally and automatically applicable to the loans thereunder mutatis mutandis without any further consent of BofA thereunder, (vii) provides that any permanent reduction of the Revolving Credit Commitments resulting in a prepayment of the Revolving Credit Loans will be accompanied by a prepayment of the loans under the Deficiency Note, ratably based on the amount of the prepayment of the Revolving Credit Loans, (viii) acknowledges that BofA shall not be entitled to be treated as a class separate from the Lenders with respect to the obligations thereunder in any bankruptcy, insolvency or reorganization proceedings of the Borrower and (ix) is on other terms and conditions reasonably satisfactory to the Administrative Agent."

Examples of Deficiency Note in a sentence

• This Subordinated Deficiency Note may not be changed orally, but only by an agreement in writing signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought.

• The following terms shall have the meanings set forth on Schedule II attached hereto and made a part hereof: [__________] Program, Applicable Interest Rate, Consolidation Payment, Credit Enhancement Amount, Indebtedness, Loan Amount, Loan Deficiency, Note Amount, Ratable Share, Scheduled Monthly Loan Payment, State and Stated Maturity Date.

• Any notice, request, or demand to be given to the Borrower under this Subordinated Deficiency Note shall be in writing and shall be deemed to have been given if delivered to the Borrower at ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇.

• Without the prior written consent of the Administrative Agent, which consent may be withheld in its sole and absolute discretion, the Guarantor shall not modify or amend the Deficiency Note Subordinate Debt except for a reduction in principal amount.

• The unpaid principal amount of this Subordinated Deficiency Note shall mature and become due and payable in full on the date that is three (3) years from the date hereof (the “Maturity Date”).

• Subject to Paragraph 8 below, this Subordinated Deficiency Note may be prepaid, in whole or in part, at any time without penalty or premium.

• The validity and construction of this Subordinated Deficiency Note and all matters pertaining thereto are to be determined according to the laws of the State of North Carolina.

• The Deficiency Note shall be executed concurrent with this Agreement and delivered to Escrow Agent to be held in escrow until Lender successfully completes the foreclosure of the Collateral.

• As additional consideration for execution of this Agreement, the Guarantor shall execute and deliver to the Bank a non-interest bearing subordinate promissory note dated the date hereof and made payable to the order of the Bank in the principal amount of $496,000 (the “Deficiency Note”), which Deficiency Note shall be amortized over a period of five (5) years and be payable as follows: 25% after the 3rd anniversary thereof; 25% after the 4th anniversary thereof; and 50% upon maturity.

• In no event shall the Release act to release CHCI from its obligations pursuant to the Deficiency Note (hereafter defined).

More Definitions of Deficiency Note

Deficiency Note means the note contemplated in Section 1.5 of the Settlement Agreement, executed by SNP Holding in favor of the Agent for the benefit of the Senior Lenders for the expected remaining balance of the Senior Lender Claim after closing of the Refinancing Transactions, in the amount of approximately $13 million (with the amount to be fixed based upon the amounts paid to the Agent through consummation of the Refinancing Transactions).

Deficiency Note has the meaning specified in Section 3.9(a) of this Agreement.

Deficiency Note means that certain Deficiency Note, made by the --------------- Borrower, dated August 16, 1999 in the principal amount of $26,485,562.79 held by Bank of America, N.A.