A critical clause in a loan agreement where breaching certain conditions can make the loan immediately repayable. The breaching of any covenant clause, failure to pay, failure to perform other duties and obligations, false representation and warranty, material adverse change, bankruptcy, and alienation of assets all account for events of default.
Representation and Warranty is a clause in loan agreements where borrowers assure their ability to borrow and provide guarantees, along with other critical confirmations.
