Common use of Resignation of an Obligor Clause in Contracts

Resignation of an Obligor. (a) The Parent may request that a Guarantor (other than the Parent or GTECH Corporation) or a Borrower (other than the Parent or GTECH Corporation) ceases to be a Guarantor or, as the case may be, Borrower by delivering to the Agent a Resignation Letter if: (i) that Guarantor (other than a Guarantor which is also an Original Borrower) or a Borrower is being disposed of by way of a Third Party Disposal and the Parent has confirmed this is the case; (ii) following the completion of any Permitted Transaction, any Guarantor (other than a Guarantor which is also an Original Borrower) ceases to be a Material Subsidiary; or (iii) all the Lenders have consented to the resignation of that Guarantor. (b) The Agent shall accept a Resignation Letter and notify the Parent and the Lenders of its acceptance if: (i) the Parent has confirmed that no Default is continuing or would result from the acceptance of the Resignation Letter; and (ii) no payment is due from the Guarantor under Clause 24.1 (Guarantee and indemnity) or from a Borrower under Clause 11.3 (Repayment) or Clause 15.3 (Payment of interest). (c) The resignation of that Guarantor shall not be effective until the date of the relevant Third Party Disposal at which time that company shall cease to be a Guarantor and shall have no further rights or obligations under the Finance Documents as a Guarantor.