Common use of Deferral of Payments in Connection with Illegality Clause in Contracts

Deferral of Payments in Connection with Illegality. If a party gives a notice of Illegality, the due date for any payment scheduled to be made by either party pursuant to Section 2 of this Agreement in connection with any Affected Transaction at any time after that notice is effective shall be deferred to the earliest to occur of (i) the date for settlement payments pursuant to Section 6(e) of this Agreement in connection with an Early Termination Date, (ii) the final Scheduled Payment Date for the Affected Transactions and (iii) the date on which arrangements made pursuant to Section 6(b)(ii) of this Agreement to avoid the Illegality are effected. Any payments deferred pursuant to this provision shall be made on the deferred payment date together with interest accrued on each deferred amount from and including its originally scheduled due date to but excluding the deferred due date (or, if an Early Termination Date is designated, to but excluding the day it is designated) at the Non-default Rate.

Deferral of Payments in Connection with Illegality. If a party gives a notice of Illegality, the due date for any payment scheduled to be made by either party pursuant to Section 2 of this Agreement in connection with any Affected Transaction at any time after that notice is effective shall be deferred to the earliest to occur of (i) the date for settlement payments pursuant to Section 6(e) of this Agreement in connection with an Early Termination Date, (ii) the final Scheduled Payment Date for the Affected Transactions and (iii) the date on which arrangements made pursuant to Section 6(b)(ii) of this Agreement to avoid the Illegality are effected. Any payments deferred pursuant to this provision shall be made on the deferred payment date together with interest accrued on each deferred amount from and including its originally scheduled due date to but excluding the deferred due date (or, if an Early Termination Date is designated, to but excluding the day it is designated) at the Non-default Rate.