This office lease clause is an onerous approach to a default remedies clause. This clause is similar to those found in many New York City landlord office lease forms.
Kentucky Onerous Approach to Default Remedy Clause
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US-OL14032
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?Curing? or ?remedying? the default means correcting the failure or omission. A common example is a failure to pay the rent on time.
This provision specifies the remedies for an Event of Default and also outlines the order in which available funds will be disbursed to the lenders. all outstanding borrowings become immediately due and payable. all outstanding borrowings become immediately due and payable.
Other remedies that lenders can consider if an event of default exists under a loan agreement are: Refusing to make further loans or issue additional letters of credit. Accelerating the borrower's loan repayment obligations. Requiring the borrower to cash collateralize undrawn and unexpired letters of credit.
A boilerplate rights and remedies clause (or cumulative remedies clause) recording that the parties to an agreement intend the rights and remedies provided under the agreement to co-exist with any other rights and remedies available to them under the general law, and not to displace them.