Glossary

Event of Default

By October 18, 2021No Comments

An occurrence which gives lenders under a project financing arrangement the right to declare the Borrower in default of its obligations under the financing agreements and to require immediate repayment of the debt in full. While project lenders rarely exercise this right, they will use their ability to do so to bring the Borrower / Sponsor(s) to the table to discuss how the default may be remedied. A loan agreement will incorporate a list of such events, some of which will be Boilerplate clauses, while others will be heavily negotiated.