Common use of Consequences of a Default Event Clause in Contracts

Consequences of a Default Event. (a) At any time after a Default Event has occurred without limiting any other right that the Bank has the Bank may give the Borrower a default notice which tells the Borrower: (i) the grounds on which the Bank considers a Default Event has occurred; and (ii) unless the Default Event is unable to be remedied: a. what action is necessary to remedy the Default Event; and b. that the Borrower has to remedy the Default Event within a specified period (at least 30 days from the date of the default notice unless it is reasonable for the Bank to act after giving a shorter period or no notice period to manage a material and immediate risk relating to the nature of the relevant default, the Borrower’s particular circumstances, or the value of the security). (b) If the Bank gives the Borrower a default notice in relation to a Default Event and the Borrower does not remedy the Default Event within the period specified in the default notice or the Default Event cannot be remedied, the Bank may: (i) make the Outstanding Money immediately due and payable (subject to any rights the Borrower may have under the National Credit Code or any other law), or (ii) sue the Borrower for that amount or enforce any Security; or (iii) do both. However, if the Borrower is a small business (within the meaning of the Banking Code of Practice) the Bank may only act under this clause 18.4 in relation to a Default Event other than the Default Events described as a Monetary Default or Insolvency Default in clause 18.1 above if the Default Event by its nature is material or the Bank reasonably considers the Default Event has had, or is likely to have, a material impact on: (i) the Borrower’s or a Guarantor’s ability to meet their financial obligations to the Bank (or its ability to assess this); or (ii) the Bank’s security risk (or its ability to assess this); or (iii) in relation to a Default Event described as a Compliance Default, Misrepresentation Default or Unapproved Purpose Default in clause 18.1 above, the Bank’s legal or reputation risk.

Consequences of a Default Event. (a) At any time after a Default Event has occurred without limiting any other right that the Bank has the Bank may give the Borrower a default notice which tells the Borrower: (i) the grounds on which the Bank considers a Default Event has occurred; and (ii) unless the Default Event is unable to be remedied: a. what action is necessary to remedy the Default Event; and b. that the Borrower has to remedy the Default Event within a specified period (at least 30 days from the date of the default notice unless it is reasonable for the Bank to act after giving a shorter period or no notice period to manage a material and immediate risk relating to the nature of the relevant default, the Borrower’s particular circumstances, or the value of the security). (b) If the Bank gives the Borrower a default notice in relation to a Default Event and the Borrower does not remedy the Default Event within the period specified in the default notice or the Default Event cannot be remedied, the Bank may: (i) make the Outstanding Money loan balance immediately due and payable (subject to any rights the Borrower may have under the National Credit Code or any other law), ; or (ii) sue the Borrower for that amount or enforce any Security; or (iii) do both. However, if the Borrower is a small business (within the meaning of the Banking Code of Practice) the Bank may only act under this clause 18.4 7.4 in relation to a Default Event other than the Default Events described as a Monetary Default or Insolvency Default in clause 18.1 above 7.1 if the Default Event event by its nature is material material, or the Bank reasonably considers the Default Event has had, or is likely to have, a material impact on: (i) the Borrower’s Borrower or a Guarantor’s ability to meet their financial obligations to the Bank (or its ability to assess this); or; (ii) the Bank’s security risk (or its ability to assess this); or (iii) in In relation to a Default Event described as a Compliance Default, Misrepresentation Default or Unapproved Purpose Default in clause 18.1 7.1 above, the Bank’s legal or reputation risk.

Consequences of a Default Event. (a) At any time after a Default Event has occurred without limiting any other right that the Bank has the Bank may give the Borrower a default notice which tells the Borrower: (i) the grounds on which the Bank considers a Default Event has occurred; and (ii) unless the Default Event is unable to be remedied: a. what What action is necessary to remedy the to Default Event; and b. that the Borrower has to remedy the Default Event within a specified period (at least 30 days from the date of the default notice unless it is reasonable for the Bank to act after giving a shorter period or no notice period to manage a material and immediate risk relating to the nature of the relevant default, the Borrower’s your particular circumstances, or the value of the security). (b) If the Bank gives the Borrower Borrwer a default notice in relation to a Default Deafauly Event and the Borrower does not remedy the Default Event within the period specified in the default notice or the Default Event cannot be remedied, the Bank may: (i) make the Outstanding Money immediately due and payable (subject to any rights the Borrower may have under the National Credit Code or any other law), or (ii) sue the Borrower for that amount or enforce any Security; or (iii) do both. However, if the Borrower is a small business (within the meaning of the Banking Code of Practice) Practice the Bank may only act under this clause 18.4 7.4 in relation to a Default Event other than the Default Events described as a Monetary Default or Insolvency Default in clause 18.1 7.1 above if the Default Event by its nature is material or the Bank reasonably considers the Default Event has had, or is likely to have, a material impact on: (i) the Borrower’s or a Guarantor’s ability to meet their financial obligations to the Bank (or its ability to assess this); or (ii) the Bank’s security risk (or its ability to assess this); or (iii) in relation to a Default Event described as a Compliance Default, Misrepresentation Default or Unapproved Purpose Default in clause 18.1 7.1 above, the Bank’s legal or reputation risk.

Consequences of a Default Event. (a) At any time after a Default Event has occurred without limiting any other right that the Bank has the Bank may give the Borrower a default notice which tells the Borrower: (i) the grounds on which the Bank considers a Default Event has occurred; and (ii) unless the Default Event is unable to be remedied: a. what What action is necessary to remedy the to Default Event; and b. that the Borrower has to remedy the Default Event within a specified period (at least 30 days from the date of the default notice unless it is reasonable for the Bank to act after giving a shorter period or no notice period to manage a material and immediate risk relating to the nature of the relevant default, the Borrower’s your particular circumstances, or the value of the security). (b) If the Bank gives the Borrower a default notice in relation to a Default Event and the Borrower does not remedy the Default Event within the period specified in the default notice or the Default Event cannot be remedied, the Bank may: (i) make the Outstanding Money immediately due and payable (subject to any rights the Borrower may have under the National Credit Code or any other law), or (ii) sue the Borrower for that amount or enforce any Security; or (iii) do both. However, if the Borrower is a small business (within the meaning of the Banking Code of Practice) Practice the Bank may only act under this clause 18.4 7.4 in relation to a Default Event other than the Default Events described as a Monetary Default or Insolvency Default in clause 18.1 7.1 above if the Default Event by its nature is material or the Bank reasonably considers the Default Event has had, or is likely to have, a material impact on: (i) the Borrower’s or a Guarantor’s ability to meet their financial obligations to the Bank (or its ability to assess this); or (ii) the Bank’s security risk (or its ability to assess this); or (iii) in relation to a Default Event described as a Compliance Default, Misrepresentation Default or Unapproved Purpose Default in clause 18.1 7.1 above, the Bank’s legal or reputation risk.