Events of Default

Question 1

What is a grace period?

Answer 1

Period where Borrower can rectify potential EoD before it becomes an actual EoD

Question 2

When is the misrepresentation EoD triggered?

Answer 2

Extends to any representations made by Borrower

Triggered when Borrower fails to repeat a representation, NOT when misrep actually occurred

Question 3

Cross-default vs Cross-acceleration

Answer 3

Cross-default = if Borrower breaches financial obligations under any other loan agreement, can call EoD under this clause

Cross-acceleration = if Borrower breaches financial obligs under loan agreement with Creditor B, Creditor B must take steps to remedy provisions to trigger our LA

Question 4

MAC EoD

Answer 4

Material Adverse Change - sweep up provision to catch circs which threaten Borrower’s ability to comply with its obligations