Defaulting Lenders; etc Sample Clauses
The "Defaulting Lenders" clause defines the rights and remedies available when a lender under a loan agreement fails to meet its funding or other obligations. In practice, this clause typically outlines the steps the administrative agent or other lenders may take, such as suspending the defaulting lender's voting rights, reallocating its funding commitments among non-defaulting lenders, or restricting its participation in future advances. The core function of this clause is to ensure the smooth operation of the loan facility by minimizing disruption caused by a lender's default and protecting the interests of both the borrower and the non-defaulting lenders.
Defaulting Lenders; etc. In the event that any Lender shall become a Defaulting Lender or S&P, ▇▇▇▇▇’▇ or ▇▇▇▇▇▇▇▇’▇ BankWatch (or InsuranceWatch Ratings Service, in the case of Lenders that are insurance companies (or Best’s Insurance Reports, if such insurance company is not rated by Insurance Watch Ratings Service)) shall, after the date that any Lender becomes a Lender, downgrade the long-term certificate deposit ratings of such Lender, and the resulting ratings shall be below BBB-, Baa3 and C (or BB, in the case of a Lender that is an insurance company (or B, in the case of an insurance company not rated by InsuranceWatch Ratings Service)) (or, with respect to any Lender that is not rated by any such ratings service or provider, an Issuing Bank shall have reasonably determined that there has occurred a material adverse change in the financial condition of any such Lender, or a material impairment of the ability of any such Lender to perform its obligations hereunder, as compared to such condition or ability as of the date that any such Lender became a Lender) then each of the Issuing Banks shall have the right, but not the obligation, at its own expense, upon notice to such Lender and the Administrative Agent, to replace such Lender with an assignee (in accordance with and subject to the restrictions contained in paragraph B above), and such Lender hereby agrees to transfer and assign without recourse (in accordance with and subject to the restrictions contained in paragraph B above) all its interests, rights and obligations in respect of its Commitment to such assignee; provided, however, that (i) no such assignment shall conflict with any Applicable Law and (ii) the Issuing Banks or such assignee, as the case may be, shall pay to such Lender in immediately available funds on the date of such assignment the principal of and interest accrued to the date of payment on the Loans made by such Lender hereunder and all other amounts accrued for such Lender’s account or owed to it hereunder.
Defaulting Lenders; etc. Notwithstanding anything to the contrary contained above, (x) no Lender may become a Participating Specified Foreign Currency Lender at any time it is a Defaulting Lender, and (y) if any Participating Specified Foreign Currency Lender at any time becomes a Defaulting lender or if the Designated Fronting Bank reasonably determines that the credit quality of any then existing Participating Specified Foreign Currency Lender has suffered a material adverse change, the Designated Fronting Bank shall have the right to, by notice to the affected Lender, (i) terminate such Lender’s status as a Participating Specified Foreign Currency Lender for Revolving Loans, (ii) declare a Specified Foreign Currency Participation Settlement Date to occur with respect to such affected Lender and (iii) require such Participating Specified Foreign Currency Lender to cash collateralize (in the relevant Available Currency) such Lender’s Percentage of outstanding European Borrower Revolving Loans and/or Canadian Revolving Loans as the case may be and if such Lender fails to cash collateralize such Loans, upon two (2) days’ notice require the European Borrower and/or the Canadian Borrowers to cash-collateralize (in the relevant Available Currency) such Lender’s percentage of outstanding European Borrower Revolving Loans and/or Canadian Revolving Loans, as the case may be.
Defaulting Lenders; etc. Notwithstanding anything to the contrary contained above, (x) no Lender may become a Participating Specified Foreign Currency Lender at any time it is a Defaulting Lender, and (y) if any Participating Specified Foreign Currency Lender at any time becomes a Defaulting Lender or if the Fronting Lender reasonably determines that the credit quality of any then existing Participating Specified Foreign Currency Lender has suffered a material adverse change, the Fronting Lender shall have the right to, by notice to the affected Lender, (i) terminate such Lender’s status as a Participating Specified Foreign Currency Lender for Loans and (ii) declare a Specified Foreign Currency Participation Settlement Date to occur with respect to such affected Lender.
Defaulting Lenders; etc. Notwithstanding anything to the contrary contained above, (x) no Lender may become a Participating Specified Foreign Currency Lender at any time it is a Defaulting Lender, and (y) if any Participating Specified Foreign Currency Lender at any time becomes a Defaulting Lender, the Fronting Lender shall have the right to, by notice to the affected Lender, (i) terminate such Lender’s status as a Participating Specified Foreign Currency Lender for Revolving Loans and (ii) declare a Specified Foreign Currency Participation Settlement Date to occur with respect to such affected Lender.
Defaulting Lenders; etc. Notwithstanding anything to the contrary contained above, (x) no ABL Lender may become a Participating Specified Foreign Currency lender at any time its is a Defaulting Lender, and (y) if any Participating Specified Foreign Currency Lender at any time becomes a Defaulting Lender or if the Fronting Lender reasonably determines that the credit quality of any then existing Participating Specified Foreign Currency Lender has suffered a material adverse change, the Fronting Lender shall have the right to, by notice to the affected ABL Lender, (i) terminate such ABL Lender’s status as a Participating Specified Foreign Currency Lender for Revolving Loans and (ii) declare a Specified Foreign Currency Participation Date to occur with respect to such affected ABL Lender.