Event of default and Evergreen deposit: Difference between pages

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An event of default is the event of breaching a loan agreement or other similar agreement
A short-term deposit that is routinely renewed, effectively leaving the principal outstanding for the long term.
 
 
The occurrence of an event of default normally expressly permits the lender to accelerate repayment of the amount outstanding on the loan and to cancel any further lending. However, the lender is not obliged to and may choose not to accelerate repayment.
 
Each loan agreement will normally define exactly what constitutes an event of default of that agreement.
 
 
Events of default will generally include:
*any failure to pay interest or capital on a due date,
*any failure to comply with a covenant or breach other obligations under the agreement, and
*any inability to repeat a representation.
 
 
Cross defaults are defaults in one facility that constitutes a default in another.




== See also ==
== See also ==
* [[Acceleration]]
* [[Deposit]]
* [[Breach of covenant]]
* [[Evergreen facility]]
* [[Covenant]]
* [[Principal]]
* [[Cross default]]
* [[Default]]
* [[Financial covenant]]
* [[Forbearance]]
* [[Grace period]]
* [[Loan agreement]]
* [[Material adverse change]]
* [[Putting a limit on losses]]
* [[Representations and warranties]]
* [[Waiver]]
 
[[Category:Compliance_and_audit]]
[[Category:Identify_and_assess_risks]]

Revision as of 17:02, 25 June 2017

A short-term deposit that is routinely renewed, effectively leaving the principal outstanding for the long term.


See also