Loan Agreement: Equity Cure Clause | Practical Law

Loan Agreement: Equity Cure Clause | Practical Law

A Standard Clause for loan agreements permitting the parent company of the borrower or its financial sponsor to make an equity contribution to the borrower so that it can satisfy its financial covenant tests in the loan agreement. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.

Loan Agreement: Equity Cure Clause

Practical Law Standard Clauses 6-383-3166 (Approx. 7 pages)

Loan Agreement: Equity Cure Clause

by Practical Law Finance
MaintainedUSA (National/Federal)
A Standard Clause for loan agreements permitting the parent company of the borrower or its financial sponsor to make an equity contribution to the borrower so that it can satisfy its financial covenant tests in the loan agreement. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.