Interest Cancellation Sample Clauses
The Interest Cancellation clause defines the circumstances under which accrued interest on a loan or financial obligation is forgiven or no longer payable. Typically, this clause applies when certain conditions are met, such as the early repayment of principal, a default event, or the occurrence of a specific triggering event outlined in the agreement. By specifying when and how interest obligations can be cancelled, this clause provides clarity for both parties and helps prevent disputes over interest payments, ensuring that financial responsibilities are clearly allocated.
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Interest Cancellation where any election to cancel payment of any interest (or any Guaranteed Amount in respect thereof) under Condition 6(a) is made or where any payment of any interest (or any Guaranteed Amount in respect thereof) pursuant to Condition 6(b) is mandatorily cancelled, give notice of such election or mandatory cancellation to the holders (in accordance with Conditions 6(e) and 14), the Trustee and the Principal Paying Agent and, in the case of a mandatory cancellation, deliver a certificate signed by two Directors of the Issuer or the Guarantor (as the case may be) confirming that: (A) a Mandatory Interest Cancellation Event has occurred and is continuing or would occur if payment of interest (or Guaranteed Amounts in respect thereof) on the Notes were to be made; or (B) a Mandatory Interest Cancellation Event has ceased to occur and/or payment of interest (or Guaranteed Amounts in respect thereof) on the Notes would not result in a new or further Mandatory Interest Cancellation Event occurring;
Interest Cancellation