Payment upon Acceleration Clause Samples
The Payment upon Acceleration clause defines the obligation of a borrower to immediately pay all outstanding amounts if certain triggering events, such as default or breach, occur. In practice, this means that if the borrower fails to meet specific terms of the agreement, the lender can demand full repayment of the remaining balance, rather than continuing with the original payment schedule. This clause serves to protect the lender by providing a mechanism to recover funds quickly in the event of increased credit risk or default.
Payment upon Acceleration. If the Commitments shall be terminated or the principal of the Notes shall become immediately due and payable pursuant to Section 6.01, the Borrower shall pay to the Agent for deposit in the Segregated Collateral Account an amount equal to the aggregate amount which is then, or may thereafter become, available for drawing under all outstanding Letters of Credit.
Payment upon Acceleration. The principal amount of, and the Make-Whole Amount, if any, on, the Notes shall be payable upon declaration of acceleration pursuant to Section 502 of the Base Indenture.
Payment upon Acceleration. If the Issuing Bank directs the Company pursuant to Section 7.02(a) to make the payment required by this clause (f), the Company shall pay to the Issuing Bank for application to drawings under any then outstanding Letters of Credit an amount equal to the aggregate amount which is then, or may thereafter (under any contingency) become, available for drawing under such Letters of Credit. The Issuing Bank shall invest any amount paid to it pursuant to the first sentence of this clause (f) in Temporary Cash Investments. Any amount paid by the Company to the Issuing Bank pursuant to the first sentence of this clause (f) with respect to a Letter of Credit and not applied to a drawing thereunder (together with interest or other income, to the extent received by the Issuing Bank on the related Temporary Cash Investments) shall, as promptly as practicable after such Letter of Credit expires or is fully drawn and all related Obligations (together with all interest accrued thereon, whether or not allowed or allowable as a claim in a proceeding referred to in clause (g) or (h) of Section 7.01) are paid, be applied by the Issuing Bank to pay any other amounts then due and payable by the Company hereunder. When all such amounts shall have been paid in full, the Issuing Bank shall repay the remaining balance, if any, to the Company.
Payment upon Acceleration. If the Commitments shall be ------------------------- terminated or the principal of the Notes shall become immediately due and payable pursuant to Section 2.10 or 6.1, but the Administrative Agent shall not have given an Enforcement Notice (as defined in the Inventory Security Agreement) as provided in Section 6.1, the Borrower shall pay to the L/C Issuing Bank for application to drawings under any then outstanding Letters of Credit an amount equal to the aggregate amount which is then, or may thereafter become, available for drawing under such Letters of Credit. The L/C Issuing Bank shall invest such amount in Liquid Investments (as defined in the Inventory Security Agreement) at the direction of the Administrative Agent. If the Administrative Agent subsequently gives an Enforcement Notice or an event specified in clause (h) or (i) of Section 6.1 shall have occurred and be continuing with respect to the Borrower, the L/C Issuing Bank shall pay all amounts held by it pursuant to this subsection to the Collateral Agent for application pursuant to the Inventory Security Agreement. If an Enforcement Notice is not then in effect and no event specified in clause (h) or (i) of Section 6.1 shall have occurred and be continuing with respect to the Borrower, any amount so paid by the Borrower to the L/C Issuing Bank with respect to a Letter of Credit and not applied to a drawing thereunder shall be repaid to the Borrower, with interest or other income (to the extent received by the L/C Issuing Bank on the related Liquid Investments), as promptly as practicable after such Letter of Credit expires or is fully drawn.
Payment upon Acceleration. If the Commitments shall be terminated or the principal of the Notes or the Yen Notes shall become immediately due and payable pursuant to Section 7.1, each Borrower shall immediately pay to the Administrative Agent an amount in immediately available funds equal to the aggregate amount which is then, or may thereafter become, available for drawing under all outstanding Letters of Credit issued for such Borrower's account. The Administrative Agent shall hold the amount paid to it by each Borrower pursuant to this subsection (h) in a separate collateral account in the name of the Administrative Agent and shall from time to time invest and reinvest such amount, together with any interest or other income thereon, in Permitted Temporary Cash Investments (which shall also be held in such collateral account), but shall have no liability for any failure to keep such amounts so invested. Each Borrower grants to the Administrative Agent a continuing security interest in all amounts and Permitted Temporary Cash Investments held from time to time in the collateral account in which such Borrower's funds are deposited to secure such Borrower's obligations under this Section and all other amounts payable by such Borrower under this Agreement. The Administrative Agent shall apply amounts in each such collateral account in the following order of priorities: first to reimburse the relevant Issuing Banks for drawings under Letters of Credit issued for the account of such Borrower and to pay any other amounts due from such Borrower under this Section; second to pay, as promptly as practicable after all such Letters of Credit expire or are fully drawn and reimbursed, any other amounts then due and payable by such Borrower under this Agreement; and finally to pay any surplus then remaining to such Borrower.