Insufficient Collateral Clause Samples
The Insufficient Collateral clause defines the actions and remedies available when a party fails to maintain the required level of collateral under an agreement. Typically, this clause outlines the process for notifying the party of the shortfall, the timeframe within which the deficiency must be remedied, and the consequences of failing to do so, such as the right to terminate the agreement or call for additional security. Its core practical function is to protect the secured party by ensuring that adequate collateral is always maintained, thereby mitigating credit risk and providing a clear mechanism for addressing shortfalls.
Insufficient Collateral. In respect of loans of securities entered into on behalf of a Fund, NFS will value on a daily basis in accordance with the applicable SLA, the loaned securities and all Collateral and, where applicable, NFS shall, in accordance with the provisions of the applicable SLA, request the Approved Borrower to deliver sufficient additional Collateral to the Trust by the next business day to satisfy the applicable margin requirement.
Insufficient Collateral. The Borrowers shall, immediately and without notice or demand of any kind, make repayments of the Loans to the extent necessary to reduce the outstanding principal amount of the Revolving Credit Obligations to an amount not to exceed the Borrowing Base.
Insufficient Collateral. The Borrowers shall, immediately and without notice or demand of any kind, make such repayments of the Loans to the extent necessary to reduce the amount equal to the sum of (A) the outstanding principal amount of the Revolving Credit Obligations PLUS (B) the outstanding principal amount of the Term Loans PLUS (C) the outstanding principal amount of the Loans made under the Acquisition Subfacility to an amount not to exceed the Borrowing Base.
Insufficient Collateral. The Borrower shall fail to hold bulk whiskey, bourbon and rye inventories held in third-party storage facilities at its then current market value, whether now existing or hereafter acquired (collectively, the “Collateral”) in an amount less than 120% (One Hundred Twenty percent) of the outstanding Loan balance.