Acceleration; Rescission Clause Samples
The "Acceleration; Rescission" clause allows a lender or party to demand immediate repayment of all outstanding obligations if certain triggering events, such as a default, occur. In practice, this means that if the borrower fails to meet specific terms of the agreement, the lender can require the full balance to be paid at once, rather than according to the original payment schedule; the clause may also provide for the rescission, or cancellation, of the agreement under certain conditions. This mechanism serves to protect the lender by providing a clear remedy in the event of breach, ensuring that risks associated with non-performance are promptly addressed.
Acceleration; Rescission. If an Event of Default for the Series A Notes shall have occurred and be continuing, unless the principal of the Series A Notes shall have already become due and payable, either the Series Trustee or the Holders of at least 25% in aggregate principal amount of the Series A Notes then outstanding (determined as provided in Section 8.4 of the Base Indenture) may declare the entire principal amount of the Series A Notes to be due and payable immediately, and upon such declaration the same shall become due and payable. The foregoing provisions, however, are subject to the condition that if, at any time after the principal amount of the Series A Notes shall have been so declared due and payable, and before any judgment or decree for the payment of moneys due shall have been obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the Series Trustee a sum sufficient to pay all matured installments of interest upon all the Series A Notes and the principal of all Series A Notes which shall have become due otherwise than by declaration (with interest on overdue installments of interest to the extent permitted by law and on such principal at the rate or rates of interest borne by, or prescribed therefor in, the Series A Notes to the date of such payment or deposit) and the amounts payable to the Series Trustee under Section 7.6 of the Base Indenture, and any and all defaults under the Indenture with respect to Series A Notes, other than the nonpayment of principal of and any accrued interest on Series A Notes which shall have become due by declaration, shall have been cured, remedied or waived as provided in Section 2.12 below, then and in every such case the holders of a majority in principal amount of the Series A Notes then outstanding (determined as provided in Section 8.4 of the Base Indenture) and as to which such Event of Default has occurred by written notice to the Company and to the Series Trustee, may rescind and annul such declaration and its consequences. The two paragraphs immediately following clause (e) of Section 6.1 of the Base Indenture shall not apply to the Series A Notes, and any reference in the Base Indenture to such provision shall, for purposes of the Series A Notes, be deemed to refer instead to the applicable provision of this Section 2.11.
Acceleration; Rescission. 39 SECTION 6.3
Acceleration; Rescission. If an Event of Default with respect to Securities of any series at the time Outstanding (other than an Event of Default specified in Section 6.1(3) or (4)) occurs and is continuing, the Trustee by notice to the Company, or the Holders of not less than a majority in aggregate Principal Amount of the Outstanding Securities of that series by notice to the Company and the Trustee, may declare the Principal Amount (or, if any of the Securities of that series are Discount Securities, such portion of the Principal Amount of such Securities as may be specified in the terms thereof) of all the Securities of that series to be immediately due and payable. Upon such a declaration, such Principal (or portion thereof) shall be due and payable immediately. If an Event of Default specified in Section 6.1(3) or (4) occurs and is continuing, the Principal (or portion thereof) of all the Securities of that series shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Securityholders. The Holders of a majority in aggregate Principal Amount of the Outstanding Securities of any series, by notice to the Trustee (and without notice to any other Securityholder) may rescind an acceleration with respect to that series and its consequences if the rescission would not conflict with any judgment or decree and all existing Events of Default with respect to Securities of such series have been cured or waived except nonpayment of the Principal (or portion thereof) of Securities of such series that has become due solely as a result of such acceleration and if all amounts due to the Trustee under Section 7.7 have been paid. No such rescission shall affect any subsequent Default or impair any right consequent thereto.
Acceleration; Rescission. If the Obligations have become due and payable by any Nondebtor, including as a result of the termination of the Intercreditor Agreement or as a result of Section 6.02(b) of the Indenture, the Supporting Holders hereby agree that any such acceleration pursuant to Section 6.02(c) of the Indenture shall hereby be deemed to be rescinded (solely with respect to the Nondebtors) during the term of this Agreement. The Supporting Holders shall promptly deliver notice of such rescission to the Trustee in accordance with Section 6.02 of the Indenture.
Acceleration; Rescission. If an Event of Default (other than an Event of Default specified in clause (vii) or (viii) of Section 6.01(a) hereof) shall have occurred and be continuing under this Indenture, the Trustee by notice to the Company, or the Holders of at least 25% in principal amount of the Notes then outstanding by notice to the Company and the Trustee, may declare all Notes to be due and payable immediately. Upon such declaration of acceleration, the amounts due and payable on the Notes, as determined pursuant to Section 6.02(b), shall be due and payable immediately. If an Event of Default with respect to the Company specified in clause (vii) or (viii) of Section 6.01(a) hereof occurs, such an amount will ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee and the Company or any Holder.