Finance Deals & Syndicated Lending · glossary
A Default is continuing until it is remedied or waived, so a breach that was put right or forgiven no longer counts. Most lender rights, such as a drawstop or acceleration, work only while a Default or Event of Default is continuing. Clause 1.2 · Chapter 5 · Chapter 10
Explained in Chapter 5, Anatomy of a Facility Agreement, of Finance Deals & Syndicated Lending.
The third word is “continuing”. Under clause 1.2(g), a Default is continuing until it is remedied or waived (excused by the lenders). So a breach that was put right, or forgiven, no longer counts against the borrower.Read Chapter 5, Anatomy of a Facility Agreement →
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