Against Borrower Clause Samples
The 'Against Borrower' clause establishes the rights or remedies that a lender or other party may exercise specifically in relation to the borrower under a contract. Typically, this clause outlines the actions that can be taken if the borrower defaults on their obligations, such as demanding repayment, enforcing security interests, or pursuing legal action. Its core practical function is to protect the lender by clearly defining the consequences for the borrower in the event of a breach, thereby allocating risk and ensuring enforceability of the agreement.
Against Borrower. Notwithstanding any prior termination of this Agreement, prior to the date that is one year and one day after Payment in Full, none of the Custodian, Collateral Trustee, or any Lender will institute against, join any other Person in instituting against, acquiesce, petition or otherwise invoke, or cause the Borrower to invoke, the process of any court or governmental authority for the purpose of commencing or sustaining an Insolvency Proceeding or other case against the Borrower under any federal or State bankruptcy, insolvency or other Debtor Relief Law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official for the Borrower or any substantial part of its property, or for ordering the winding up or liquidation of the affairs of the Borrower. The Borrower hereby agrees that it shall receive the foregoing agreement from each counterparty to any contract entered into by the Borrower.