Common use of Delinquent Contracts Clause in Contracts

Delinquent Contracts. So long as no Event of Default or event which with the giving of notice or the passage of time would constitute an Event of Default has occurred under this Agreement, Delinquent Contracts that are in monetary default only may remain part of the Collateral provided that (i) the Borrower gives written notice to the Lender within thirty (30) days of each monthly monetary default; (ii) the defaults by the Obligor do not exceed three (3) consecutive monthly payments or a total of four (4) nonconsecutive monthly payments. With respect to Delinquent Contracts that are in non-monetary default, including without limitation, the involvement of the Obligor in any bankruptcy or insolvency proceedings, or Delinquent Contracts that are in monetary default beyond the limitations of the foregoing sentence, the Borrower shall within fifteen (15) days, either (i) pay to the Lender an amount equal to the outstanding balance of the loan proceeds advanced with respect to such Contract, and such payment shall be applied to the unpaid principal balance of the Note, or (ii) execute and deliver to the Lender an Addendum and Assignment (and appropriate UCC financing statements) respecting one or more other Contracts with an aggregate Equipment Value multiplied by 90% that is equal to or greater than the outstanding balance of the loan proceeds advanced with respect to such Delinquent Contract, and Obligor Acknowledgment(s) relating to such Contract(s) duly executed by each Obligor under such Contract, and all such other documents, instruments and agreements as required under Section 3(b) and 3(c) or as the Lender may request.

Delinquent Contracts. So long as no Event of Default or event which with the giving of notice or the passage of time would constitute an Event of Default has occurred under this Agreement, Delinquent Contracts that are in monetary default only may remain part of the Collateral provided that (i) the Borrower gives written notice to the Lead Lender within thirty (30) days of each monthly monetary default; and (ii) the defaults by the Obligor do not exceed three (3) consecutive monthly payments or a total of four six (46) nonconsecutive monthly payments. With respect to Delinquent Contracts that are in non-monetary default, including without limitation, the involvement of the Obligor in any bankruptcy or insolvency proceedings, or Delinquent Contracts that are in monetary default beyond the limitations of the foregoing sentence, the Borrower shall within fifteen thirty (1530) days, either (i) pay to the Lead Lender an amount equal to the outstanding balance of the loan Loan proceeds advanced with respect to such Contract, and such payment shall be applied to the unpaid principal balance of the Note, or (ii) execute and deliver to the Lead Lender an Addendum and Assignment (and appropriate UCC financing statementsstatements and the other documents described in Section 4 hereof) respecting one or more other Contracts with an aggregate Equipment Value multiplied by 90% that is equal to or greater than the outstanding balance of the loan Loan proceeds advanced with respect to such Delinquent Contract, and Obligor Acknowledgment(s) relating to such Contract(s) duly executed by each Obligor under such Contract, and all such other documents, instruments and agreements as required under Section 3(b) and 3(c) this Agreement or as the Lead Lender may request.