Entitled to Perform Covenants Clause Samples
The "Entitled to Perform Covenants" clause establishes a party's right and authority to fulfill the obligations and promises set out in an agreement. In practice, this clause confirms that the party has all necessary legal rights, permissions, and capacity to carry out the required actions, such as delivering goods, providing services, or making payments. By including this provision, the contract ensures that each party is legally empowered to perform its duties, thereby reducing the risk of non-performance due to lack of authority or legal incapacity.
Entitled to Perform Covenants. If the Borrower fails to perform any covenant contained in this Article 9, or in any other provision hereof or of any of the other Loan Documents, the Lender may perform in any manner deemed fit by it without thereby waiving any rights to enforce this Agreement or the other Loan Documents, any such covenant capable of being performed by it and if any such covenant requires the payment of money, the Lender may make such payments. All sums so expended by the Lender shall be deemed to form part of the Obligations, shall bear interest at the same rate as the Loan and shall be payable by the Borrower on demand.
Entitled to Perform Covenants. If the Company or any other Obligor fails to perform any covenant contained in Section 8.1, or in any other provision hereof or of any of the other Loan Documents or breaches Section 8.3, the Majority Holders or the Security Agent may (but shall have no obligation to) perform, without thereby waiving any rights to enforce this Agreement or the other Loan Documents, any such covenant capable of being performed by it and if any such covenant requires the payment of money the Majority Holders or the Security Agent may (but shall have no obligation to) make such payments. All sums so expended by the Majority Holders or the Security Agent shall be deemed to form part of the Obligations, shall bear interest at the same rate as the Principal Amount following the occurrence of an Event of Default and shall be payable by the Company on demand.