COLLECTION FROM THIRD PARTY Clause Samples
The 'Collection from Third Party' clause authorizes a party to collect payments or debts owed by another party through a third-party agent or service. In practice, this means that if the original debtor fails to pay, the creditor can engage a collection agency or assign the right to collect to another entity. This clause ensures that the creditor has additional avenues to recover outstanding amounts, thereby increasing the likelihood of payment and reducing the risk of non-collection.
COLLECTION FROM THIRD PARTY. (1) No repayment of the Borrower’s obligations under this Agreement by any party other than the Borrower is allowed, unless it obtains prior written consent from the Lender.
(2) The Borrower shall not, on or after the execution date of this Agreement, commission any third party to guarantee (including any guarantee by property) the Borrower’s performance of its obligations under this Agreement, nor shall the Borrower make any third party assume the Borrower’s obligations under this Agreement, unless it obtains prior written consent from the Lender.
(3) If the Lender enters into a guarantee (including any property guarantee; hereinafter the same shall apply in this Article) without being commissioned by the Borrower or assumption of obligations with any third party with respect to the Borrower’s obligations under this Agreement, the Lender shall have obtained prior written consent from the third party with respect to each item described below. In this case, if the Lender receives any payment from the third party pursuant to such guarantee or assumption of obligations, the Lender that received such payment shall report to the Lender the payment amount, details of the application, information concerning the said third party and other matters requested by the Lender.
(i) The third party shall have the same obligations as the Lender has against the Borrower under this Agreement with respect to any exercise of its right for recourse and the contractual rights hereunder arising as a result of performing its guarantee obligation or obligations it has assumed, or by the exercise of security interest it has created.
(ii) The third party shall be bound upon by each provision of this Agreement.
(iii) The third party must be a body corporate located in Japan (having its head office, branch office or business office in Japan registered under the Japanese laws), and neither the third party nor the Borrower is the Subsidiaries of either party.
(iv) If the third party obtains a part of receivables in relation to the Individual Loan, the value of the loan receivables that the third party obtains by subrogation is equal to or more than one hundred (100) million yen (or, as for Tranche B, more than an amount equivalent to one hundred (100) million yen).
(v) There will be no increase in the amount of the Borrower’s interest expense payable to the third party, due to any withholding tax or other taxes arising from any such obtainment by subrogation. In the case of any obtainmen...
COLLECTION FROM THIRD PARTY. 31.1 No repayment of the Borrower’s debt obligations under this Agreement by any party other than the Borrower is allowed, unless it obtains prior written consent from the Agent and All Lenders.
31.2 The Borrower shall not, on or after the execution date of this Agreement, consign any third party to guarantee (including any guarantee by property) the Borrower’s performance of its debt obligations under this Agreement, nor shall the Borrower make any third party assume its debt obligations under this Agreement or performance thereof, unless it obtains prior written consent from the Agent and All Lenders.
31.3 If a Lender enters into a guarantee without consignment to the Guarantor by the Borrower (including any property guarantee) or a debt assumption with any third party with respect to the Borrower’s obligations under this Agreement, the Lender shall have obtained prior written consent of the third party with respect tosatisfied all of the requirements specified in each item described below. In this case, if the Lender receives any repayment from the third party pursuant to such guarantee or debt assumption, no arrangement among the Lenders pursuant to the assignment of receivables underin Clause 24.1 shall be made.
(i) The third party shall have the same obligations as a Lender has against the Agent, other Lenders and the Borrower under this Agreement with respect to any exercise of its right for recourse and the contractual rights hereunder arising as a result of the performance of its guarantee obligation.
(ii) The third party shall be bound upon by each provision of this Agreement.
(iii) The third party is [type of business engaged in by the third party], and as of [mm/dd/yy], neither the third party nor the Borrower is a sSubsidiary or an aAffiliate of either party.
(iv) The value of the Loan Receivables that the third party obtains by subrogation is equal to or more than [ ] hundred million yen.
(v) There will be no increase in the amount of the Borrower’s interest expense payable to the third party, and no withholding tax or other taxes arise from any such obtainment by subrogation. In the case of any obtainment by subrogation of the Loan Receivables by the third party pursuant to the provisions of Item (i) above, such obtainment by subrogation shall be considered the assignment of the Loan Receivables pursuant to Clause 30, and the provisions of Clauses 30.2 3 and 30.3 4 shall apply.
COLLECTION FROM THIRD PARTY. 31.1 No repayment of the Borrower’s debt obligations under this Agreement by any party other than the Borrower is allowed, unless it obtains prior written consent from the Agent and All Lenders.
31.2 The Borrower shall not, on or after the execution date of this Agreement, consign any third party to guarantee (including any guarantee by property) the Borrower’s performance of its debt obligations under this Agreement, nor shall the Borrower make any third party assume its debt obligations under this Agreement or performance thereof, unless it obtains prior written consent from the Agent and All Lenders.
31.3 If a Lender enters into a guarantee without consignment to the Guarantor by the Borrower (including any property guarantee) or a debt assumption with any third party with respect to the Borrower’s obligations under this Agreement, the Lender shall have satisfied all of the requirements specified in each item described below. In this case, if the Lender receives any repayment from the third party pursuant to such guarantee or debt assumption, no arrangement among the Lenders pursuant to the assignment of receivables in Clause 24.1 shall be made.
(i) The third party shall have the same obligations as a Lender has against the Agent, other Lenders and the Borrower under this Agreement with respect to any exercise of its right for recourse and the contractual rights hereunder arising as a result of the performance of its guarantee obligation.
(ii) The third party shall be bound upon by each provision of this Agreement.
(iii) The third party is [type of business engaged in by the third party], and neither the third party nor the Borrower is a Subsidiary or an Affiliate of either party.
(iv) The value of the Loan Receivables that the third party obtains by subrogation is equal to or more than [ ] hundred million yen.
(v) There will be no increase in the amount of the Borrower’s interest expense payable to the third party, and no withholding tax or other taxes arise from any such obtainment by subrogation. In the case of any obtainment by subrogation of the Loan Receivables by the third party pursuant to the provisions of Item (i) above, such obtainment by subrogation shall be considered the assignment of the Loan Receivables pursuant to Clause 30, and the provisions of Clauses 30.3 and 30.4 shall apply.