In Default Under The Agreement

In addition to the breach of the payment clause and the breach of the financial covenant, a more general default event is often included in order to identify a breach of all other obligations of the borrower arising from the loan agreement, such as breaches of obligations. The borrower may endeavor to limit the default to “substantial” infringements and/or negotiate an additional period within which the infringement can be corrected before the delay event occurs. It is therefore important that the borrower carefully compensates for all his obligations under the loan agreement, including restrictions on his ability to manage the property (e.g. B with respect to leasing, disposal and development) and the borrowing of other third-party loan funds. The various guarantees, guarantees and obligations can therefore be modified to ensure that they do not hinder the proper functioning of the borrower or hinder his intentions for the property. As mentioned briefly, cross-default clauses are very favorable to the debtors of the agreements, as they are sufficient to minimize the risk of default in the agreement, but these clauses can have a negative impact on borrowers. For example, due to the domino effect generated by cross-default clauses, a borrower who has obtained multiple credits may be caught in default with all of his loans due to the default of a single loan and lose all of his financial advantage and power. In order to protect borrowers from such negative situations, the parties should negotiate and take certain measures. “Deficiencies are usually noted between the parties and recalled in the safety agreement. Incidents of delay may include, inter alia, that delay occurs when a Contracting Party fails to comply with its obligations under the Treaty, which is also classified as an infringement. Contracts are documents signed “for remuneration”.

This means that no one can enter into a contract in which only one party has obligations under the contract, so that if one party is in default with a contract, it affects the actions of the other party. Notwithstanding the occurrence and continuation of an event of default, it is considered that the lender cannot bring an action against the borrower, the project, if no default in the borrower`s loan agreement has occurred and continues. . . .