Definition of Potential Default


Potential Default means the occurrence of any event or condition which, with the giving of notice, the passage of time, or both, would constitute an Event of Default.
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Potential Default means an event or omission that would be a default under this security agreement or any other document evidencing or creating security for the obligation, except for the passage of time or the giving of notice.
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Examples of Potential Default in a sentence

No Event of Default or Potential Default exists or is continuing.
No event has occurred and is continuing and no condition exists or will exist after giving effect to the borrowings or other extensions of credit to be made on the Closing Date under or pursuant to the Loan Documents which constitutes an Event of Default or Potential Default.
Promptly after any officer of any Loan Party has learned of the occurrence of an Event of Default or Potential Default, a certificate signed by an Authorized Officer setting forth the details of such Event of Default or Potential Default and the action which such Loan Party proposes to take with respect thereto.
There shall exist no Events of Default or Potential Default on the effective date of such increase after giving effect to such increase.
No event has occurred and is continuing and no condition exists which constitutes an Event of Default or Potential Default.