Financing Party’s Default Rights Sample Clauses
The "Financing Party’s Default Rights" clause defines the rights and remedies available to a lender or financing party if the borrower or another party defaults on their obligations under the agreement. Typically, this clause outlines the specific events that constitute a default, such as missed payments or breaches of covenants, and details the actions the financing party may take in response, such as accelerating the debt, enforcing security interests, or pursuing legal remedies. Its core function is to protect the financing party by providing clear procedures and consequences in the event of default, thereby allocating risk and ensuring the lender can recover its investment.
Financing Party’s Default Rights. ▇▇▇▇▇’s consent to collateral assignment may contain the following provisions:
i. The Financing Party, as collateral assignee, shall be entitled to exercise, in the place and stead of Seller, any and all rights and remedies of Seller under this Agreement in accordance with the terms of this Agreement.
ii. Buyer will not exercise any right to terminate or suspend this Agreement unless it shall have given each Financing Party prior written notice of its intent to terminate or suspend this Agreement, as required by this Agreement, specifying the condition giving rise to such right, and the Financing Party shall not have caused to be cured the condition giving rise to the right of termination or suspension within sixty (60) days after such notice or (if longer) the periods provided for in this Agreement; provided that if such Seller default reasonably cannot be cured by the Financing Party within such period and such party commences and continuously pursues cure of such default within such period, such period for cure will be extended for a reasonable period of time under the circumstances, such period not to be less than an additional sixty (60) days. The Parties’ respective obligations will otherwise remain in effect during any cure period.
iii. The Financing Party shall have the right, but not the obligation, to pay all sums due under this Agreement and to perform any other act, duty or obligation required of Seller hereunder or cause to be cured any default of Seller hereunder in the time and manner provided by the terms of this Agreement. Unless the Financing Party has succeeded to Seller’s interests under this Agreement, nothing herein requires the Financing Party to cure any default of Seller under this Agreement or to perform any act, duty or obligation of Seller under this Agreement, but Buyer may give it the option to do so within the terms and time periods required by this Agreement.
iv. Buyer may agree that if a Financing Party notifies Buyer in writing that an event of default under Seller’s financing arrangement has occurred and is continuing and that the Financing Party has elected to take an enforcement action or otherwise exercise remedies with respect to the Project and/or the replacement of the Seller under this Agreement (an “Enforcement Action”), then, provided that the Enforcement Conditions are satisfied, (1) the Qualified Assignee that acquires the Project through such Enforcement Action shall be substituted for the then named Seller un...