Loan Agreement Events of Default: Lenders' Remedies Resource Kit

Summary

This resource kit provides an overview of drafting defaults, events of default, and related provisions in a loan agreement and a lender's remedies upon an event of default. A typical loan agreement will include a section listing various events, the occurrence and continuation of which will constitute an event of default under the loan agreement and may permit the lender to pursue its rights and remedies against the company as set forth in the loan agreement and under applicable law. When a loan goes into default, the lenders must make a number of decisions, from agreeing to waive the default to terminating the loans and initiating suit and foreclosure actions. In some instances, the lender will work with the borrower to restructure its debt or will seek to liquidate a borrower's assets outside of bankruptcy. For information on the myriad of non-bankruptcy options, see Out-of-Court Restructuring and Liquidation Alternatives Resource Kit. In other cases, the lender may decide to exercise ...