Common use of ENVIRONMENTAL EVENTS OF DEFAULT Clause in Contracts

ENVIRONMENTAL EVENTS OF DEFAULT. Any of the following shall constitute an additional Event of Default: (a) If Bank receives its first notice of a hazardous discharge or environmental complaint from a source other than Borrower or Guarantor, and Bank does not receive notice (which may be given in oral form, provided same is followed with all due dispatch by written notice given by Certified Mail, Return Receipt Requested) of such hazardous discharge or environmental complaint from Borrower or Guarantor within seven (7) days of the time Bank first receives said notice from a source other than Borrower or Guarantor; or (b) If any federal, state or local agency asserts or creates a lien in excess of $50,000 on any or all of the assets, equipment, property, leaseholds or other facilities of the Borrower by reason of the occurrence of a hazardous discharge or environmental complaint; or (c) If any federal, state or local agency asserts a claim against Borrower or Guarantor and/or its assets, equipment, property, leaseholds or other facilities for damages or cleanup costs in excess of $50,000 relating to a hazardous discharge or environmental complaint; provided, however, such claim shall not constitute an Event of Default if, within ten (10) business days of the occurrence giving rise to the claim; (i) Borrower or Guarantor can demonstrate to Bank's satisfaction that Borrower or Guarantor has commenced and is diligently pursuing either: (1) a cure or correction of the event which constitutes the basis for the claim, and continues diligently to pursue such cure or correction to completion or (2) proceedings for an injunction, a restraining order or other appropriate emergent relief preventing such agency or agencies from asserting such claim, which relief is granted within ten (10) business days of the occurrence giving rise to the claim and the injunction, order or emergency relief is not thereafter resolved or reversed on appeal; and (ii) In either of the foregoing events, Borrower or Guarantor has posted a bond, letter of credit or other security satisfactory in form, substance and amount to both Bank and the agency or entity asserting the claim to secure the correction of the event that constitutes the basis for the claim.

ENVIRONMENTAL EVENTS OF DEFAULT. Any of the following shall constitute an additional Event of Default: (a) If Bank receives its first notice of a hazardous discharge or environmental complaint from a source other than Borrower or Guarantor, and Bank does not receive notice (which may be given in oral form, provided same is followed with all due dispatch by written notice given by Certified Mail, Return Receipt Requested) of such hazardous discharge or environmental complaint from Borrower or Guarantor within seven (7) days of the time Bank first receives said notice from a source other than Borrower or Guarantor; or (b) If any federal, state or local agency asserts or creates a lien in excess of $50,000 on any or all of the assets, equipment, property, leaseholds or other facilities of the Borrower by reason of the occurrence of a hazardous discharge or environmental complaint; or (c) If any federal, state or local agency asserts a claim against Borrower or Guarantor and/or its assets, equipment, property, leaseholds or other facilities for damages or cleanup costs in excess of $50,000 relating to a hazardous discharge or environmental complaint; provided, however, such claim shall not constitute an Event of Default if, within ten (10) business days of the occurrence giving rise to the claim; (i) Borrower or Guarantor can demonstrate to Bank's satisfaction that Borrower or Guarantor has commenced and is diligently pursuing either: (1) a cure or correction of the event which constitutes the basis for the claim, and continues diligently to pursue such cure or correction to completion or (2) proceedings for an injunction, a restraining order or other appropriate emergent relief preventing such agency or agencies from asserting such claim, which relief is granted within ten (10) business days of the occurrence giving rise to the claim and the injunction, order or emergency relief is not thereafter resolved or reversed on appeal; and (ii) In either of the foregoing events, Borrower or Guarantor has posted a bond, letter of credit or other security satisfactory in form, substance and amount to both Bank and the agency or entity asserting the claim to secure the correction of the event that which constitutes the basis for the claim.