Common use of Rate Reductions in the Event of Breaches and Violations Clause in Contracts

Rate Reductions in the Event of Breaches and Violations. If Treasury determines, in its sole discretion, that the Credit Union has breached, violated or defaulted under‌ (i) any covenant, agreement or obligation of the Credit Union included in this Agreement or the Subordinated Debt or, (ii) Section 104A of the Community Development Banking Act, or the ECIP Interim Final Rule, or (iii) any additional rules or regulations established in connection with ECIP that further the purposes of Section 104A of the Community Development Banking Act, Treasury may, in its sole discretion, determine that the Credit Union shall not be eligible for any rate reduction with respect to the Subordinated Debt for such period as Treasury, in its sole discretion, shall determine. Any such determination shall cause the applicable interest rate of the Subordinated Debt to reset as specified in the Subordinated Security. Treasury shall provide notice to the Credit Union of any determination with respect to the Credit Union’s disqualification from eligibility for rate reductions or the termination of any such disqualification; provided, that any failure by Treasury to provide notice of any such determination or defect in such notice or the transmission thereof shall not affect or prejudice Treasury’s rights or remedies under this Section 5.6 or the Subordinated Debt. Notwithstanding the foregoing, a default in the payment of interest shall not be subject to this Section 5.6.‌‌‌

Rate Reductions in the Event of Breaches and Violations. If Treasury determines, in its sole discretion, that the Credit Union has breached, violated or defaulted under‌under (i) any covenant, agreement or obligation of the Credit Union included in this Agreement or the Subordinated Debt orDebt, (ii) Section 104A of the Community Development Banking Act, Act or the ECIP Interim Final Rule, or (iii) any additional rules or regulations established in connection with ECIP that further the purposes of Section 104A of the Community Development Banking Act, Treasury may, in its sole discretion, determine that the Credit Union shall not be eligible for any rate reduction with respect to the Subordinated Debt for such period as Treasury, in its sole discretion, shall determine. Any such determination shall cause the applicable interest rate of the Subordinated Debt to reset as specified in the Subordinated Security. Treasury shall provide notice to the Credit Union of any determination with respect to the Credit Union’s disqualification from eligibility for rate reductions or the termination of any such disqualification; provided, that any failure by Treasury to provide notice of any such determination or defect in such notice or the transmission thereof shall not affect or prejudice Treasury’s rights or remedies under this Section 5.6 or the Subordinated Debt. Notwithstanding the foregoing, a default in the payment of interest shall not be subject to this Section 5.6.‌‌‌5.6.

Rate Reductions in the Event of Breaches and Violations. If Treasury determines, in its sole discretion, that the Credit Union Recipient has breached, violated or defaulted under‌ under (i) any covenant, agreement or obligation of the Credit Union Recipient included in this Agreement or the Subordinated Debt orDebt, (ii) Section 104A of the Community Development Banking Act, Act or the ECIP Interim Final Rule, or (iii) any additional rules or regulations established in connection with ECIP that further the purposes of Section 104A of the Community Development Banking Act, Treasury may, in its sole discretion, determine that the Credit Union Recipient shall not be eligible for any rate reduction with respect to the Subordinated Debt for such period as Treasury, in its sole discretion, shall determine. Any such determination shall cause the applicable interest rate of the Subordinated Debt to reset as specified in the Subordinated Security. Treasury shall provide notice to the Credit Union Recipient of any determination with respect to the Credit UnionRecipient’s disqualification from eligibility for rate reductions or the termination of any such disqualification; provided, provided that any failure by Treasury to provide notice of any such determination or defect in such notice or the transmission thereof shall not affect or prejudice Treasury’s rights or remedies under this Section 5.6 5.7 or the Subordinated Debt. Notwithstanding the foregoing, a default in the payment of interest shall not be subject to this Section 5.6.‌‌‌5.7.

Rate Reductions in the Event of Breaches and Violations. If Treasury determines, in its sole discretion, that the Credit Union has breached, violated or defaulted under‌ (i) any covenant, agreement or obligation of the Credit Union included in this Agreement or the Subordinated Debt or, or (ii) Section 104A of the Community Development Banking Act, or the ECIP Interim Final Rule, Rule or (iii) any additional rules or regulations established in connection with ECIP that further the purposes of Section 104A of the Community Development Banking ActECIP, Treasury may, in its sole discretion, determine that the Credit Union shall not be eligible for any rate reduction with respect to the Subordinated Debt for such period as Treasury, in its sole discretion, shall determine. Any such determination shall cause the applicable interest rate of the Subordinated Debt to reset as specified in the Subordinated Security. Treasury shall provide notice to the Credit Union of any determination with respect to the Credit Union’s disqualification from eligibility for rate reductions or the termination of any such disqualification; provided, provided that any failure by Treasury to provide notice of any such determination or defect in such notice or the transmission thereof shall not affect or prejudice Treasury’s rights or remedies under this Section 5.6 or the Subordinated Debt. Notwithstanding the foregoing, a default in the payment of interest shall not be subject to this Section 5.6.‌‌‌5.6.‌‌‌‌‌‌‌

Rate Reductions in the Event of Breaches and Violations. If Treasury determines, in its sole discretion, that the Credit Union Recipient has breached, violated or defaulted under‌under (i) any covenant, agreement or obligation of the Credit Union Recipient included in this Agreement or the Subordinated Debt or, (ii) Section 104A of the Community Development Banking Act, or the ECIP Interim Final Rule, or (iii) any additional rules or regulations established in connection with ECIP that further the purposes of Section 104A of the Community Development Banking Act, Treasury may, in its sole discretion, determine that the Credit Union Recipient shall not be eligible for any rate reduction with respect to the Subordinated Debt for such period as Treasury, in its sole discretion, shall determine. Any such determination shall cause the applicable interest rate of the Subordinated Debt to reset as specified in the Subordinated Security. Treasury shall provide notice to the Credit Union Recipient of any determination with respect to the Credit UnionRecipient’s disqualification from eligibility for rate reductions or the termination of any such disqualification; provided, provided that any failure by Treasury to provide notice of any such determination or defect in such notice or the transmission thereof shall not affect or prejudice Treasury’s rights or remedies under this Section 5.6 5.7 or the Subordinated Debt. Notwithstanding the foregoing, a default in the payment of interest shall not be subject to this Section 5.6.‌‌‌5.7.

Rate Reductions in the Event of Breaches and Violations. If Treasury determines, in its sole discretion, that the Credit Union Recipient has breached, violated or defaulted under‌ under (i) any covenant, agreement or obligation of the Credit Union Recipient included in this Agreement or the Subordinated Debt orPreferred Shares, (ii) Section 104A of the Community Development Banking Act, Act or the ECIP Interim Final Rule, or (iii) any additional rules or regulations established in connection with ECIP that further the purposes of Section 104A of the Community Development Banking ActAct , Treasury may, in its sole discretion, determine that the Credit Union Recipient shall not be eligible for any rate reduction with respect to the Subordinated Debt Preferred Shares for such period as Treasury, in its sole discretion, shall determine. Any such determination shall cause the applicable interest dividend rate of the Subordinated Debt Preferred Stock to reset as specified in the Subordinated SecurityCertificate of Designations. Treasury shall provide notice to the Credit Union Recipient of any determination with respect to the Credit UnionRecipient’s disqualification from eligibility for rate reductions or the termination of any such disqualification; provided, provided that any failure by Treasury to provide notice of any such determination or defect in such notice or the transmission thereof shall not affect or prejudice Treasury’s rights or remedies under this Section 5.6 5.1 or the Subordinated DebtPreferred Shares. Notwithstanding the foregoing, a determination by the Recipient not to declare dividends for any dividend period or a default in the payment of interest dividends that have been declared shall not be subject to this Section 5.6.‌‌‌5.1.