CHAPTER 9
Defaults and Enforcement
9.1 EVENTS OF DEFAULT
Events of default are specified events or circumstances that suggest a decreased likelihood that the borrower will be able to pay its obligations under the credit agreement and that may lead the lenders to want to terminate the credit facility. Credit agreements include the event of default concept to give the lenders the ability to stop extending credit to the borrower if any of the specified events occurs. Events of default also serve as a basis for the lending syndicate to exercise remedies against the borrower, such as to commence suit to recover the loan, exercise a right of setoff, or seize ...
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