NOTEHOLDERS MAY WAIVE CERTAIN DEFAULTS Clause Samples
This clause allows noteholders, who are the holders of debt securities, to formally waive certain events of default under the terms of the note agreement. In practice, this means that if the issuer breaches specific obligations—such as missing a payment or failing to meet a covenant—the noteholders can collectively decide to forgive or overlook the default, often through a majority vote or written consent. The core function of this clause is to provide flexibility in managing defaults, enabling noteholders to avoid triggering harsh remedies like acceleration or enforcement if they believe it is in their best interest to maintain the investment or support the issuer.
NOTEHOLDERS MAY WAIVE CERTAIN DEFAULTS. The holders of not less than the required percentage in principal amount of the Outstanding Notes specified in Section 7.3 may on behalf of the holders of all the Notes waive any past Default hereunder and its consequences, except a Default:
(A) in the payment of the principal of (or premium, if any) or interest on any Note, or
(B) in respect of a covenant or provision hereof which under Article 13 cannot be modified or amended without the consent of the holder of each Outstanding Note affected. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 41 52
NOTEHOLDERS MAY WAIVE CERTAIN DEFAULTS. The holders of not less than a majority of the aggregate Principal amount of the then Outstanding Notes may on behalf of the holders of all the Notes waive any past Default hereunder and its consequences, except a Default:
(A) in the payment of the Payments on any Note, if any are due and payable pursuant to and in accordance with the terms of the Notes and this Indenture, or
(B) in respect of a covenant or provision hereof which under Article 11 cannot be modified or amended without the consent of the holder of each Outstanding Note affected. Upon any such Waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.
NOTEHOLDERS MAY WAIVE CERTAIN DEFAULTS. The holders of not less than the required percentage in principal amount of the Outstanding Notes specified in Section 7.3 may on behalf of the holders of all the Notes waive any past Default hereunder and its consequences, except a Default:
(A) in the payment of the principal of or interest on any Note, or
(B) in respect of a covenant or provision hereof which under Article 13 cannot be modified or amended without the consent of the holder of each Outstanding Note affected. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.
ARTICLE 8 EVIDENCE OF RIGHTS OF NOTEHOLDERS AND OWNERSHIP OF NOTES
SECTION 8.1 EVIDENCE OF OWNERSHIP OF DEFINITIVE NOTES AND TEMPORARY NOTES ISSUED HEREUNDER IN REGISTERED FORM. Prior to due presentment for registration of transfer of any Note, the Company, the Trustee, any Note Registrar, or any agent of the Company or the Trustee may deem and treat the person in whose name any Note shall be registered at any given time upon the Note Register as the absolute owner of such Note for the purpose of receiving any payment of, or on account of, the principal and interest on such Note and for all other purposes whether or not such Note be overdue; and neither the Company nor the Trustee, nor any agent of the Company or the Trustee shall be bound by any notice to the contrary. All such payments made in accordance with