Fails to Repay Sample Clauses

The 'Fails to Repay' clause defines the consequences and procedures that apply if a borrower does not fulfill their repayment obligations under an agreement. Typically, this clause outlines what constitutes a failure to repay, such as missing a scheduled payment or defaulting on the total amount owed, and may specify remedies available to the lender, such as charging late fees, accelerating the debt, or initiating legal action. Its core practical function is to protect the lender by clearly establishing the repercussions of non-payment, thereby encouraging timely repayment and providing a framework for resolving defaults.