Enforcement Restriction Clause Samples
An Enforcement Restriction clause limits or conditions the ability of a party to enforce certain rights or remedies under a contract. Typically, this clause may specify circumstances under which enforcement actions, such as seeking damages or specific performance, are restricted or delayed, for example, requiring mediation before litigation or prohibiting enforcement during a cure period. Its core practical function is to manage the timing and manner of enforcement, thereby reducing the risk of premature or unnecessary legal action and encouraging dispute resolution through less adversarial means.
Enforcement Restriction. Notwithstanding the terms of the Junior Loan Documents, the Junior Creditor shall not, directly or indirectly, take or initiate any Enforcement Action; provided that the Junior Creditor may file of a proof of claim or similar instrument with respect to the Junior Creditor Debt in any Insolvency Proceeding or commence or initiate any action required to comply with statutory limitation periods (provided that such proceeding is then stayed).
Enforcement Restriction. Notwithstanding the terms of the Affiliate Loan Documents, the Affiliate shall not, directly or indirectly, take or initiate any Enforcement Action; provided that the Affiliate may file of a proof of claim or similar instrument with respect to the Affiliate Debt in any Insolvency Proceeding or commence or initiate any action required to comply with statutory limitation periods (provided the Senior Agent is promptly notified of such action and such proceeding is immediately stayed).