Talk:Events of Default - GMSLA Provision

2018

10 Events of Default 10.1 Each of the following events occurring and continuing in relation to either Party (the Defaulting Party, the other Party being the Non-Defaulting Party) shall be an Event of Default but only where the Non-Defaulting Party serves written notice on the Defaulting Party declaring such event to be an Event of Default: 10.1(a) Borrower failing to comply with its obligations to deliver Collateral under paragraph 5 on the due date; 10.1(b) Borrower failing to comply with its obligations under paragraph 6.1 upon the due date and not remedying such failure within three Business Days after Lender serves written notice requiring it to remedy such failure; 10.1(c) Borrower failing to pay any sum due under paragraph 9.1(b) or 9.2 upon the due date; 10.1(d) an Act of Insolvency occurring with respect to Lender or Borrower; 10.1(e) any warranty made by Lender or Borrower in paragraph 13 or paragraphs 14(a) to 14(h) or in the Security Agreement being incorrect or untrue in any material respect when made or repeated or deemed to have been made or repeated; 10.1(f) Lender or Borrower admitting to the other that it is unable to, or it intends not to, perform any of its obligations under this Agreement or the Security Agreement and/or in respect of any Loan where such failure to perform would with the service of notice or lapse of time constitute an Event of Default; 10.1(g) all or any material part of the assets of Lender or Borrower being transferred or ordered to be transferred to a trustee (or a person exercising similar functions) by a regulatory authority pursuant to any legislation; 10.1(h) Lender (if applicable) or Borrower being declared in default or being suspended or expelled from membership of or participation in, any Securities exchange or suspended or prohibited from dealing in Securities by any regulatory authority, in each case on the grounds that it has failed to meet any requirements relating to financial resources or credit rating; 10.1(i) Lender or Borrower failing to perform any other of its obligations under this Agreement and not remedying such failure within 30 days after the Non- 10.1(j) Defaulting Party serves written notice requiring it to remedy such failure; or 10.1(k) in relation to the Security Agreement, (i) Borrower failing to perform any of its obligations under the Security Agreement, (ii) the expiration or termination of the Security Agreement, (iii) any security interest granted by Borrower therein, ceasing to be or otherwise not being in full force and effect or (iv) Borrower disaffirming, disclaiming, repudiating or rejecting, in whole or in part, or challenging the validity of, such Security Agreement (or such action is taken by any person or entity appointed or empowered to operate it or act on its behalf), provided that in each such case, the Defaulting Party shall be deemed to be Borrower. 10.2 Each Party shall notify the other (in writing) if an Event of Default or an event which, with the passage of time and/or upon the serving of a written notice as referred to above, would be an Event of Default, occurs in relation to it. 10.3 Subject to paragraphs 9 and 11, neither Party may claim any sum by way of consequential loss or damage in the event of failure by the other Party to perform any of its obligations under this Agreement.