Notes Collateral Agent Performance of Debtor Obligations Clause Samples
The "Notes Collateral Agent Performance of Debtor Obligations" clause authorizes the collateral agent to perform certain obligations of the debtor if the debtor fails to do so. In practice, this means that if the debtor neglects to fulfill duties such as making payments, maintaining collateral, or complying with covenants, the collateral agent may step in and perform these actions on the debtor's behalf, often at the debtor's expense. This clause ensures that the interests of the secured parties are protected by allowing the agent to remedy defaults or lapses, thereby maintaining the value and enforceability of the collateral.
Notes Collateral Agent Performance of Debtor Obligations. Without having any obligation to do so, the Notes Collateral Agent may, at any time when an Event of Default has occurred and is continuing and upon prior written notice to the Company, perform or pay any obligation which any Grantor has agreed to perform or pay under this Security Agreement and which obligation is due and unpaid and not being contested by such Grantor in good faith, and such Grantor shall reimburse the Notes Collateral Agent for any amounts paid by the Notes Collateral Agent pursuant to this Section 7.04 as a Notes Obligation payable in accordance with Sections 7.07 and 12.07(u) of the Indenture first arising prior to the date on which the Notes Collateral Agent, any other Notes Secured Party or any of their respective designees acquires title to the applicable Collateral, or Capital Stock in any Subsidiary which directly or indirectly owns such Collateral, by foreclosure, deed-in-lieu thereof or assignment in lieu thereof, as applicable, or similar transfer.
Notes Collateral Agent Performance of Debtor Obligations. Without having any obligation to do so, the Notes Collateral Agent may, at any time when an Event of Default exists and is continuing and upon prior written notice to the Issuer, perform or pay any obligation which any Grantor has agreed to perform or pay under this Security Agreement and which obligation is due and unpaid and not being contested by such Grantor in good faith, and such Grantor shall reimburse the Notes Collateral Agent for any amounts paid by the Notes Collateral Agent pursuant to this Section 7.04 as a Secured Notes Obligation payable in accordance with Section 12.08(bb) of the Indenture.