Economic Failure definition
Economic Failure means any adverse change, deterioration in existing market conditions, as determined in the sole discretion of the Facility Agent (acting on the instructions of the Lenders) (including any adverse change or other situation in the South African or international capital markets or in South African or international monetary, financial, political or economic conditions) which renders it unlawful, impossible or uneconomic for a Lender to make a Senior Facility available (or any part thereof) in terms of any Finance Document.
Economic Failure means any adverse change in the South African or international capital markets or in South African or international monetary, financial, political or economic conditions which adversely affect the DBSA’s access to the relevant local capital markets or which renders it unlawful or impossible for the DBSA to advance any portion of the Capital on any Disbursement Date. In the case of the Borrower, Economic Failure means any adverse change in the South African or international capital markets or in South African or international monetary, financial, political or economic conditions which renders it impossible for the Borrower to request a disbursement as it shall be financially unsustainable and shall have a severe impact on the sustainability of the Borrower;
Economic Failure shall occur if, in the reasonable opinion of the Lender, a change or deterioration occurs in the domestic or international capital, money, banking, financial, monetary, economic, political or financial market conditions at any time, from and including the Signature Date up to (and including) the first Utilisation Date which falls thereafter, which renders it impractical or uneconomical for the Lender to provide the Facility at all or on the terms set out in the Finance Documents;
Examples of Economic Failure in a sentence
On the occurrence of an Economic Failure, the Lender reserves the right to increase the applicable Margin applicable to the Facility by such an amount as may be necessary to compensate for the Lender’s loss of return.
Upon the determination by the Lender that an Economic Failure has occurred, the Lender shall by written notice advise the Borrower of the increased Margin and, upon the Lender so notifying the Borrower, the applicable Margin shall increase by the percentage recorded in such notice, with effect from the date of occurrence of such Economic Failure.
More Definitions of Economic Failure
Economic Failure means any adverse change, determined in the discretion of the Preference Share Agent acting reasonably, in the South African or international capital markets or in South African or international monetary, financial, political or economic conditions which renders it unlawful or impossible for the Subscribers to perform any obligations under the Refinance Documents to which they are party on the Confirmation Date;
Economic Failure means an event or circumstance has occurred or events or circumstances have occurred (including any material adverse change or the continuation of any circumstance(s)), determined in the sole discretion of the Lender, acting reasonably, in the South African or international capital markets or in South African or international monetary, financial, political or economic conditions which materially adversely impacts on the Lender's ability to hedge an Advance and/or renders it unlawful or impossible for the Lender to advance any amount against the Facility to the Borrower in accordance with the provisions of this Agreement.