Common use of Nonpayment of Other Debt Clause in Contracts

Nonpayment of Other Debt. Default by any Credit Party or any Guarantor in the payment when due, whether by acceleration or otherwise, of any other material Debt for borrowed money, or default in the performance or observance of any obligation or condition with respect to any such other Debt if the effect of such default is to accelerate the maturity of such other Debt or to permit the holder or holders thereof, or any trustee or agent for such holders, to cause such Debt to become due and payable prior to its scheduled maturity, unless the Credit Party or the Guarantor is contesting the existence of such default in good faith and by appropriate proceedings.