Common use of Default by Borrowers or PFIs; Enforcement Clause in Contracts

Default by Borrowers or PFIs; Enforcement. (a) The MPF Bank and the MPF Provider, as the case may be, shall use commercially reasonable efforts to notify the other party, with reasonable promptness, of any material default under any Loan or PFI Agreement of which it becomes actually aware. Both parties are entitled to assume that no default or event which, with the giving of notice or lapse of time, or both, would constitute such a default, has occurred and is continuing unless that party (i) has actual knowledge of such default or event, or (ii) has been notified by the other party in writing that the other party considers that such a default or event has occurred and is continuing and specifies the nature thereof.

Default by Borrowers or PFIs; Enforcement. (a) The MPF Lead Bank and the MPF ProviderParticipant Bank, as the case may be, shall use commercially reasonable efforts to notify the other party, with reasonable promptness, of any material default under any Loan or PFI Agreement of which it becomes actually aware. Both parties are entitled to assume that no default or event which, with the giving of notice or lapse of time, or both, would constitute such a default, has occurred and is continuing unless that party (i) has actual knowledge of such default or event, or (ii) has been notified by the other party in writing that the other party considers that such a default or event has occurred and is continuing and specifies the nature thereof.