Alternative Repayment Clause Samples
The Alternative Repayment clause establishes a method for repaying a debt or obligation that differs from the standard terms originally agreed upon. Typically, this clause outlines specific conditions under which the borrower may opt for a different repayment schedule, such as extended payment periods, reduced installment amounts, or alternative payment methods. Its core practical function is to provide flexibility for parties facing financial difficulties or changing circumstances, thereby reducing the risk of default and offering a structured way to manage repayment challenges.
Alternative Repayment. As an alternative to the repayment method specified in Article 1.4(a) above, Lender may in its sole discretion determine that the Loan shall be repaid by another method upon delivering a written notice of such decision to Borrower. In such case, Borrower shall pay to Lender the outstanding amount of the Loan (including any interest) in cash or other property, as determined by Lender, following any conditions or procedures specified by Lender.