Acceleration Event definition: Copy, customize, and use instantly
Introduction
The term "Acceleration Event" refers to a specific occurrence in a contract that triggers the immediate acceleration of all outstanding obligations or payments due from one party to another. It is typically used in financing agreements to protect lenders in case of default or certain significant changes in the borrower’s situation. It ensures that creditors can take swift action to recover their investments, often by demanding immediate repayment of the entire debt.
Below are various examples of how "Acceleration Event" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Acceleration Event" as early loan repayment
This definition ties "Acceleration Event" to financial contracts.
"Acceleration Event" means an event that triggers the immediate repayment of outstanding loan amounts, including principal and accrued interest, due to a breach of terms.
Definition of "Acceleration Event" as default occurrence
This definition connects "Acceleration Event" to breaches in agreements.
"Acceleration Event" refers to a situation where a default, such as failure to meet payment obligations, leads to the acceleration of the entire debt.
Definition of "Acceleration Event" as a bankruptcy filing
This definition links "Acceleration Event" to insolvency events.
"Acceleration Event" means the occurrence of bankruptcy or insolvency proceedings against a borrower, causing the loan to become immediately due and payable.
Definition of "Acceleration Event" as a material adverse change
This definition applies "Acceleration Event" to business disruptions.
"Acceleration Event" refers to any material adverse change in the financial condition or operations of a party that causes outstanding obligations to accelerate.
Definition of "Acceleration Event" as a liquidation proceeding
This definition ties "Acceleration Event" to liquidation situations.
"Acceleration Event" means the initiation of liquidation or winding-up proceedings, forcing the borrower to pay off all outstanding debt immediately.
Definition of "Acceleration Event" as failure to meet covenant
This definition connects "Acceleration Event" to non-compliance with terms.
"Acceleration Event" refers to the breach of a financial covenant, leading to the acceleration of the loan repayment schedule.
Definition of "Acceleration Event" as cross-default
This definition links "Acceleration Event" to broader default scenarios.
"Acceleration Event" refers to a cross-default situation where the default of one financial agreement causes the acceleration of other related obligations.
Definition of "Acceleration Event" as government action
This definition applies "Acceleration Event" to regulatory actions.
"Acceleration Event" means any governmental or regulatory action that prevents the borrower from fulfilling their payment obligations, thus accelerating the debt repayment.
Definition of "Acceleration Event" as failure to deliver collateral
This definition ties "Acceleration Event" to collateralized debt.
"Acceleration Event" refers to a failure to deliver or perfect the required collateral, triggering immediate repayment of the loan balance.
Definition of "Acceleration Event" as a judgment enforcement
This definition connects "Acceleration Event" to court rulings.
"Acceleration Event" refers to the entry of a judgment against the borrower, which accelerates the loan repayment in response to the legal ruling.
Definition of "Acceleration Event" as a change of control
This definition links "Acceleration Event" to corporate governance.
"Acceleration Event" means a change in control of the borrower, such as a merger or acquisition, that accelerates the debt obligations due to the altered ownership structure.
Definition of "Acceleration Event" as a suspension of operations
This definition applies "Acceleration Event" to business operations.
"Acceleration Event" refers to the temporary suspension of a borrower’s business operations, leading to the acceleration of loan repayment.
Definition of "Acceleration Event" as a liquidity shortfall
This definition ties "Acceleration Event" to financial health.
"Acceleration Event" means a liquidity shortfall where the borrower’s cash flow becomes insufficient to cover obligations, triggering acceleration of the debt.
Definition of "Acceleration Event" as a failure to maintain insurance
This definition connects "Acceleration Event" to risk management.
"Acceleration Event" refers to the failure to maintain required insurance coverage, leading to the acceleration of the loan due to increased risk.
Definition of "Acceleration Event" as a breach of representations
This definition links "Acceleration Event" to misstatements.
"Acceleration Event" refers to the breach of representations or warranties made by the borrower, triggering an immediate repayment of the loan.
Definition of "Acceleration Event" as the withdrawal of guarantees
This definition ties "Acceleration Event" to the withdrawal of security.
"Acceleration Event" means the removal or termination of guarantees securing the debt, resulting in the acceleration of the repayment obligation.
Definition of "Acceleration Event" as a failure to maintain net worth
This definition connects "Acceleration Event" to financial stability.
"Acceleration Event" refers to the failure to maintain an agreed net worth threshold, causing the acceleration of the outstanding debt balance.
Definition of "Acceleration Event" as an event of default in other agreements
This definition links "Acceleration Event" to broader obligations.
"Acceleration Event" means an event of default under any other financial agreement that triggers the acceleration of obligations under the current agreement.
Definition of "Acceleration Event" as adverse changes in market conditions
This definition applies "Acceleration Event" to external factors.
"Acceleration Event" refers to significant adverse changes in market conditions that impact the borrower’s ability to repay debt, resulting in immediate repayment obligations.
Definition of "Acceleration Event" as a failure to pay taxes
This definition connects "Acceleration Event" to tax compliance.
"Acceleration Event" refers to the failure to pay required taxes, leading to the acceleration of outstanding loan obligations.
Definition of "Acceleration Event" as a security interest dispute
This definition links "Acceleration Event" to collateral enforcement.
"Acceleration Event" refers to a dispute or challenge to the security interest held by the lender, triggering the acceleration of repayment.
Definition of "Acceleration Event" as unauthorized transfer of assets
This definition ties "Acceleration Event" to asset management.
"Acceleration Event" refers to the unauthorized transfer or disposal of assets that were part of the loan collateral, leading to the acceleration of the repayment terms.
Definition of "Acceleration Event" as breach of payment schedule
This definition connects "Acceleration Event" to payment terms.
"Acceleration Event" means the failure to make timely payments according to the agreed schedule, triggering the immediate repayment of the full outstanding balance.
Definition of "Acceleration Event" as violation of material contract terms
This definition ties "Acceleration Event" to material breaches.
"Acceleration Event" refers to a breach of any material provision of the agreement, resulting in the acceleration of all debts owed.
Definition of "Acceleration Event" as a restructuring of obligations
This definition links "Acceleration Event" to changes in debt structure.
"Acceleration Event" means the restructuring or renegotiation of the obligations, causing the entire debt to become due immediately.
Definition of "Acceleration Event" as an illegal act
This definition applies "Acceleration Event" to legal violations.
"Acceleration Event" refers to any illegal or unlawful act committed by the borrower that triggers the acceleration of outstanding obligations.
Definition of "Acceleration Event" as a termination of key personnel
This definition connects "Acceleration Event" to organizational changes.
"Acceleration Event" refers to the termination of key personnel without approval, resulting in the immediate repayment of the loan.
Definition of "Acceleration Event" as failure to deliver financial reports
This definition links "Acceleration Event" to financial transparency.
"Acceleration Event" means the failure to deliver required financial statements or reports, causing the acceleration of the loan repayment.
Definition of "Acceleration Event" as failure to maintain operational capacity
This definition connects "Acceleration Event" to business continuity.
"Acceleration Event" refers to the failure of the borrower to maintain operational capacity, leading to the acceleration of debt obligations.
Definition of "Acceleration Event" as a breach of fiduciary duty
This definition ties "Acceleration Event" to ethical obligations.
"Acceleration Event" means a breach of fiduciary duty by the borrower, triggering the acceleration of the outstanding debt.
Definition of "Acceleration Event" as the withdrawal of investment funds
This definition links "Acceleration Event" to funding conditions.
"Acceleration Event" refers to the withdrawal or loss of investment funds that were expected to cover the loan, resulting in the immediate repayment of debt.
Definition of "Acceleration Event" as a significant judgment against the borrower
This definition applies "Acceleration Event" to court decisions.
"Acceleration Event" means the issuance of a significant judgment against the borrower, requiring the immediate payment of all debts under the loan agreement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.