Default Put Option Sample Clauses
A Default Put Option clause grants the holder the right to require the issuer or counterparty to repurchase or redeem a security or asset if a specified default event occurs. Typically, this clause is triggered if the issuer fails to meet certain financial obligations, such as missing interest payments or breaching covenants, allowing the investor to sell the security back at a predetermined price. Its core function is to protect investors by providing an exit mechanism in the event of default, thereby mitigating potential losses and allocating risk more equitably.
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Default Put Option. (a) Pursuant to the Default Put Option Agreement, upon the occurrence of an Event of Default, each Bondholder shall have the right to sell (and SBB shall have an obligation to purchase) Bonds held by such Bondholder to SBB at a price of 100.00% of the Nominal Amount (plus accrued and unpaid interest) during a period of 30 calendar days following the notice of such Event of Default (such notice shall include instructions about the actions that a Bondholder needs to take if it wants Bonds held by it to be repurchased). The settlement date of the put option pursuant to this Clause 9.6 (Default Put Option) shall occur within 20 Business Days after the ending of the exercise period (provided that if SBB exercises its Default Call Option pursuant to (b) below, the settlement date for all Bonds shall be the settlement date elected by SBB in accordance with (b) below).
(b) Pursuant to the Default Put Option Agreement, if any Bondholder exercises the Default Put Option under paragraph (a) above, SBB shall, during a period of 35 calendar days following the first date when any Bondholder provides notice that such Bondholder wants to exercise its Default Put Option, have a right to purchase the remaining Bonds outstanding at a price of 100.00% of the Nominal Amount (plus accrued and unpaid interest). The settlement date of the Default Call Option shall occur on a date elected by SBB (being a date falling no less than 3 Business Days and no more than 15 Business Days after the date when SBB exercises the Default Call Option).
Default Put Option