Loan Agreement: Equity Cure Clause | Practical Law

Loan Agreement: Equity Cure Clause | Practical Law

A Standard Clause for loan agreements that permits a borrower to receive equity contributions from its shareholder or shareholders that enable the borrower to cure prospective breaches of its financial covenants and avoid a default or event of default. The Standard Clause has integrated notes with important explanations and drafting and negotiating tips.

Loan Agreement: Equity Cure Clause

Practical Law Canada Standard Clauses w-006-7657 (Approx. 7 pages)

Loan Agreement: Equity Cure Clause

by Practical Law Canada Finance
MaintainedCanada (Common Law)
A Standard Clause for loan agreements that permits a borrower to receive equity contributions from its shareholder or shareholders that enable the borrower to cure prospective breaches of its financial covenants and avoid a default or event of default. The Standard Clause has integrated notes with important explanations and drafting and negotiating tips.