FINANCIAL EVENTS Clause Samples
The 'Financial Events' clause defines specific occurrences related to a party's financial status that may trigger certain rights or obligations under the contract. Typically, this clause outlines events such as bankruptcy, insolvency, or failure to make required payments, and specifies the consequences if such events occur. Its core practical function is to protect parties by providing clear procedures and remedies in the event of financial distress, thereby allocating risk and ensuring contractual stability.
FINANCIAL EVENTS. (i) Borrower makes a general assignment for the benefit of the Borrower's creditors; or
(ii) Borrower loses the right to do business, by forfeiture or otherwise; or
(iii) A receiver or receivers of any kind whatsoever, whether appointed or not, in admiralty, bankruptcy law, common law, or equity proceedings, and whether temporary or permanent, shall be appointed for all property of the Borrower; or
(iv) PETITION OR OTHER PROCEEDING OR ACTION IN BANKRUPTCY, regarding the Borrower, is filed by the Borrower or by creditors of the Borrower; or
FINANCIAL EVENTS. (i) Borrower makes a general assignment for the benefit of the Borrower’s creditors; or
(ii) Borrower loses the right to do business, by forfeiture or otherwise; or
(iii) A receiver or receivers of any kind whatsoever, whether appointed or not, in admiralty, bankruptcy law, common law, or equity proceedings, and whether temporary or permanent, shall be appointed for property of the Borrower; or Article VII, DEFAULT (continued)
(iv) PETITION OR OTHER PROCEEDING OR ACTION IN BANKRUPTCY, regarding the BORROWER, is filed by the BORROWER or by creditors of the BORROWER; however, no proceeding or action in bankruptcy filed against BORROWER by its creditors shall constitute an event of default under the Financial Agreement unless such proceeding or action has not been dismissed within 60 days of filing. ALL PARTIES TO THIS AGREEMENT ACKNOWLEDGE AND UNDERSTAND THAT IN THE EVENT THAT A PETITION IN BANKRUPTCY IS FILED BY ANY PARTY OR AN INVOLUNTARY BANKRUPTCY PETITION FILED BY A THIRD PARTY IS NOT DISMISSED WITHIN 60 DAYS OF FILING, THAT THE FOLLOWING EVENT WILL OCCUR:
1. THE GOVERNMENT WILL IMMEDIATELY ACCELERATE THE ENTIRE AMOUNT OUTSTANDING AND DEMAND IMMEDIATE PAYMENT THEREOF; AND
2. ANY VESSEL THAT SECURES, IN WHOLE OR IN PART, THE SUM OWED THE GOVERNMENT WILL RETURN TO PORT AND NOT DEPART UNLESS ORDERED BY THE BANKRUPTCY COURT.
FINANCIAL EVENTS. If, at any time during the term of this Lease (a) Tenant files in any court a petition in bankruptcy or insolvency or for reorganization, or for arrangement or for the appointment of a receiver or trustee of all or a portion of the Tenant’s property, or (b) an involuntary petition of any kind referred to in Subdivision (a) of this section is filed against the Tenant, and the petition is not vacated or withdrawn within 30 days after the date of filing thereof, or (c) if ▇▇▇▇▇▇ makes an assignment for the benefit of creditors, or (d) if Tenant is adjudicated a bankrupt, or (e) a receiver is appointed for the property of the Lease Agreement Tenant by order of the court, ▇▇▇▇▇▇’s estate and right to possession hereunder will terminate ipso facto upon the happening of any one of such events, and ▇▇▇▇▇▇ will then quit and surrender the Leased Premises to Landlord, but Tenant will remain liable as hereinafter provided, subject to Landlord’s best efforts to mitigate damages by re-letting the Leased Premises.
FINANCIAL EVENTS. (i) ▇▇▇▇▇▇▇▇ makes a general assignment for the benefit of the BORROWER'S creditors; or
(ii) BORROWER loses the right to do business, by forfeiture or otherwise; or
(iii) A receiver or receivers of any kind whatsoever, whether appointed or not, in admiralty, bankruptcy, common law, or equity proceedings, and whether temporary or permanent, shall be appointed for the Vessel or for any other property of the BORROWER; or
(iv) A PETITION OR OTHER PROCEEDING OR ACTION IN BANKRUPTCY, regarding the BORROWER, is filed by the BORROWER or by creditors of the BORROWER; or