Redemptions Suspended During Default Sample Clauses
The 'Redemptions Suspended During Default' clause allows a fund or financial entity to temporarily halt investor redemptions if a default event occurs. In practice, this means that investors cannot withdraw or redeem their shares or interests while the default situation is ongoing, regardless of normal redemption rights. This clause is designed to protect the fund’s stability and prevent a run on assets during periods of financial distress, ensuring that the entity can manage its obligations and avoid further financial deterioration.
Redemptions Suspended During Default. Notwithstanding the following provisions of this Article III, neither the Shipowner nor the Indenture Trustee shall redeem any Obligations, except pursuant to Section 3.04 or 3.06 during the continuance of any Indenture Default or event which with the lapse of time could constitute a Payment Default, except that, where the mailing of notice of redemption of any Obligations shall have theretofore been made, the Indenture Trustee shall redeem or cause to be redeemed such Obligations if it shall have received a sum sufficient for such redemption. Except as aforesaid, any moneys received by the Indenture Trustee for the redemption of Obligations which may not be applied to the redemption thereof shall be held as security for the payment of all the Obligations, and, (i) in case such Indenture Default or such event shall no longer be continuing, such moneys shall thereafter be applied to the redemption of Obligations in accordance with the applicable provisions of the Obligations and of this Article III, (ii) in the event the Secretary shall have assumed the Obligations pursuant to Section 6.09 or shall have been required to pay the Guarantees, such moneys shall be paid over by the Indenture Trustee to the Secretary or (iii) if no Obligation shall be Outstanding, other than by payment of the Guarantees, such moneys shall be paid to the Shipowner.
Redemptions Suspended During Default. 5 SECTION 3.02.
Redemptions Suspended During Default. 8 SECTION 3.02. Redemptions.........................................9 (a) Redemptions With Premium........................9 (b)
Redemptions Suspended During Default. This Table of Contents is not a part of the Indenture and has no bearing upon the interpretation of its terms and provisions.
Redemptions Suspended During Default. Notwithstanding the following provisions of this Article III, neither the Shipowner nor the Indenture Trustee shall redeem any Obligations, except pursuant to Section 3.04 or 3.06 during the continuance of any Indenture Default or event which with the lapse of time could constitute a Payment Default, except that, where the mailing of notice of redemption of any Obligations shall have theretofore been made, the Indenture
Redemptions Suspended During Default. 7 Section 3.02.