Security & Collateral · glossary

Waiver

Giving up a right, by words or by conduct. The Bank waived the 2027 interest cover breach, and only that, for a fee of £25,000, a higher margin, a blocked account, monthly accounts and a security review. The waiver changed the loan, not the security (clause 15.1). Debenture §15.1 · Chapter 8

Explained in Chapter 8, The Breach, the Waiver and the Blocked Account, of Security & Collateral.

The main page for this term is Waiver, in Finance Deals & Syndicated Lending.

How it comes up, in Chapter 8
The letter guards against a waiver (giving up a right). A bank that knows of a breach and carries on as normal may later be told it chose to overlook the breach. Taking interest and lending more under the revolving facility are both normal conduct. A written reservation stops that conduct being read as a waiver.
Read Chapter 8, The Breach, the Waiver and the Blocked Account →

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