Common use of Defaulted Loans Clause in Contracts

Defaulted Loans. A Loan shall default upon the occurrence of any of the following: (a) the Borrower fails to make any payment when due, (b) the Borrower makes any statement or representation in connection with obtaining a Loan which is false, (c) the Borrower fails to keep any promise or agreement it made to the Lender in any promissory note evidencing a Loan, or (d) the CSO Contract related to such Loan is cancelled for any reason prior to the Lender receiving payment in full on such Loan. Pursuant to each CSO Contract, and regardless of whether the CSO Contract is cancelled, Cash America agrees to, and hereby does, unconditionally guaranty, on behalf of the Borrower, and for the benefit of Lender, the prompt payment of all amounts due under each Loan to Lender. In full satisfaction of such guaranty obligations, Cash America will, on the day a Loan defaults, purchase such Loan from Lender for an amount equal to the principal, interest and fees accrued and outstanding as of such date. All such purchased Loans will be assigned by Lender to Cash America without recourse pursuant to a Master Assignment of Promissory Notes to be executed by Cash America and Lender on even date herewith. Following such assignment, all amounts paid by Borrowers with respect to such purchased Loans (including the proceeds of any new Loans made to Borrowers by Lender for the purpose of refinancing such purchased Loans) shall be for the account of Cash America.

Defaulted Loans. A Loan shall default upon the occurrence of any of the following: (a) the Borrower fails to make any payment when due, (b) the Borrower makes any statement or representation in connection with obtaining a Loan which is false, (c) the Borrower fails to keep any promise or agreement it made to the Lender in any promissory note evidencing a Loan, or (d) the CSO Contract related to such Loan is cancelled for any reason prior to the Lender receiving payment in full on such Loan. Pursuant to each CSO Contract, and regardless of whether the CSO Contract is cancelled, Cash America agrees to, and hereby does, unconditionally to guaranty, on behalf of the Borrower, and for the benefit of Lender, the prompt Borrower’s payment of all amounts due obligations under each Loan to Lender. In full satisfaction of such guaranty obligations, Cash America will, on the day a Loan defaults, purchase such Loan from Lender for an amount equal to the principal, interest and fees accrued and outstanding as of such date. All such purchased Loans will be assigned by Lender to Cash America without recourse pursuant to a Master Assignment of Promissory Notes to be executed by Cash America and Lender on even date herewith. Following such assignment, all amounts paid by Borrowers with respect to such purchased Loans (including the proceeds of any new Loans made to Borrowers by Lender for the purpose of refinancing such purchased Loans) shall be for the account of Cash America.