Common use of Loan Defaults Clause in Contracts

Loan Defaults. If any of the following events occurs, it is hereby defined as and declared to be and to constitute a “Loan Default”: (a) failure by the Borrower to pay any payment obligation required to be paid hereunder when due, which failure shall continue a period of five Business Days; (b) failure by the Borrower to observe and perform any covenant, condition or agreement on its part to be observed or performed under this Loan Agreement, other than as referred to in paragraph (a) or (c) through (f) of this Section, which failure shall continue for a period of thirty (30) calendar days after written notice, specifying such failure and requesting that it be remedied, is given to the Borrower by Issuer or the Bank, unless the Issuer and the Bank shall agree in writing to an extension of such time prior to its expiration; provided, however, that if the failure stated in such notice is correctable but cannot be corrected within the applicable period the Issuer and the Bank may not unreasonably withhold their consent to an extension of such time up to thirty (30) calendar days from the delivery of the written notice referred to above if corrective action is instituted by the Borrower in the applicable period and diligently pursued until the Loan Default is corrected; (c) any representation made by or on behalf of the Borrower contained in this Loan Agreement, or in any instrument furnished in compliance with or with reference to this Loan Agreement or the Loan, is false or misleading in any material respect on the date on which such representation is made; (d) a petition is filed by or against the Borrower under any federal or state bankruptcy or insolvency law or other similar law in effect on the date of this Loan Agreement or thereafter enacted, unless in the case of any such petition filed against the Borrower such petition shall be dismissed within thirty (30) calendar days after such filing and such dismissal shall be final and not subject to appeal; or the Borrower shall become insolvent or bankrupt or make an assignment for the benefit of its creditors; or a custodian (including, without limitation, a receiver, liquidator or trustee) of the Borrower or any of its property shall be appointed by court order or take possession of the Borrower or its property if such order remains in effect or such possession continues for more than thirty (30) calendar days; (e) the Borrower shall generally fail to pay its debts as such debts become due; and, (f) any material provision of this Loan Agreement shall at any time for any reason cease to be valid and binding on the Borrower, or shall be declared to be null and void, or the validity or enforceability of any thereof shall be contested by the Borrower or any governmental agency or authority (other than the Issuer), or if the Borrower shall deny any further liability or obligation under this Loan Agreement.

Loan Defaults. (a) If any Loan granted to a Borrower, within the meaning of Subsection 6.3, pursuant to this Section VI is not repaid in accordance with its terms, and the failure continues for a period of at least thirty (30) days, the Plan Administrator shall notify the Borrower in writing in a timely matter that he has thirty (30) days from the date of the following events occursnotice to cure the failure (the “Cure Period”), it and if the failure is hereby defined not cured within the Cure Period, the Plan Administrator shall, without further notice to the Borrower, accelerate the balance due on the Loan and treat the Loan as in default. If the Borrower is deceased, such notice may be given to the person who would be entitled to receive distribution of his Account under the terms of the Plan and declared who has or may elect to be and continue to constitute a repay the Loan under its original terms as provided in Subsection 6.3(l) above (hereinafter referred to as “Loan DefaultBeneficiary Borrower”). If the failure is not cured within the Cure Period, and: (ai) failure if one of the distributable events of Section VII has occurred, then the Plan Administrator shall reduce the Account by the balance due on the Loan and record and report the transaction as an offset distribution; (ii) if a distributable event under Section VII has not occurred and the Borrower to pay is eligible for, and consents to, a Withdrawal then the Plan Administrator shall declare the balance due on any payment obligation required such Loan to be paid hereunder when duea Withdrawal under the Plan and so record and report the transaction as an offset distribution; or (iii) if a distributable event under Section VII has not occurred and the Borrower is not eligible for, which failure or does not consent to, a Withdrawal then the Plan Administrator: (A) shall continue record and report the unpaid Loan balance and any accrued but unpaid interest as a period taxable deemed distribution; and (B) at the earliest time the Account can be distributed under Section VII, may reduce the Account by the balance due on the Loan, including any accrued but unpaid interest. In any such event, the Plan will be completely discharged of five Business Days;all liability under the Plan for the balance of the Account up to the balance (including interest) due on any such Loan. (b) failure by Written notice to the Borrower (or to observe and perform any covenant, condition the Beneficiary Borrower if the Borrower is deceased) will conclusively be presumed to have been given under the terms of Subsection 6.4(a) above when mailed (postage prepaid) to the last known address for the Borrower or agreement on its part the Beneficiary Borrower according to the Plan Administrator’s records. If the Plan Administrator has no address for the Beneficiary Borrower to be observed or performed under this Loan Agreementnotified if the Borrower is deceased, other than as referred the written notice may be mailed to the Beneficiary Borrower at the Borrower’s last known address and, in paragraph (a) or (c) through (f) of this Sectionsuch event, which failure shall continue for a period of thirty (30) calendar days after written notice, specifying such failure and requesting that it notice will conclusively be remedied, is presumed to have been properly given to the Borrower by Issuer or the Bank, unless the Issuer and the Bank shall agree in writing to an extension of such time prior to its expiration; provided, however, that if the failure stated in such notice is correctable but cannot be corrected within the applicable period the Issuer and the Bank may not unreasonably withhold their consent to an extension of such time up to thirty (30) calendar days from the delivery of the written notice referred to above if corrective action is instituted by the Borrower in the applicable period and diligently pursued until the Loan Default is corrected;Beneficiary Borrower. (c) any representation made by or on behalf of Notwithstanding the Borrower contained in this Loan Agreementabove, or in any instrument furnished in compliance with or with reference to this Loan Agreement or the Loan, is false or misleading in any material respect on Plan Administrator may extend the date on which such representation is made;Cure Period provided that the following conditions are met: (di) a petition the Cure Period is filed not extended by or against the Borrower under any federal or state bankruptcy or insolvency law or other similar law in effect on the date of this Loan Agreement or thereafter enacted, unless in the case of any such petition filed against the Borrower such petition shall be dismissed within thirty (30) calendar days after such filing and such dismissal shall be final and not subject to appeal; or the Borrower shall become insolvent or bankrupt or make an assignment for the benefit of its creditors; or a custodian (including, without limitation, a receiver, liquidator or trustee) of the Borrower or any of its property shall be appointed by court order or take possession of the Borrower or its property if such order remains in effect or such possession continues for more than thirty (30) calendar 30 days; (eii) it is demonstrated that the Borrower made a good faith effort to cure the failure by the end of the Cure Period; and (iii) the Borrower shall generally fail criteria above is applied by the Plan Administrator on a consistent basis for all Borrowers similarly situated. In no event may the Cure Period for the failure to pay its debts as such debts become an installment payment when due continue beyond the last day of the calendar quarter following the calendar quarter in which the required installment payment was due; and, (f) any material provision of this Loan Agreement shall at any time for any reason cease to be valid and binding on the Borrower, or shall be declared to be null and void, or the validity or enforceability of any thereof shall be contested by the Borrower or any governmental agency or authority (other than the Issuer), or if the Borrower shall deny any further liability or obligation under this Loan Agreement.