Event of default meaning

ARCHIVED: This Checklist is archived and no longer maintained. Brexit: From exit day (11 pm on 31 January 2020), the UK ceased to be an EU Member State. Nonetheless, under the Withdrawal Agreement, the UK entered an implementation period during which EU law continues to apply, which affects this Checklist. For additional guidance, refer to Brexit Bulletin—key updates, research tips and resources, and the Brexit collection. On 3 February 2020, the UK and the EU published initial negotiating stances on a future UK-EU relationship after Brexit. Although the Political Declaration, which accompanies the Withdrawal Agreement, outlines the framework for future ties with the EU, it is not legally binding, so either party may decide to deviate from parts or all of it, and outcomes could therefore differ from that text. If talks on a UK-EU trade agreement fail (a no trade deal Brexit), UK-EU trade would default to World Trade Organization (WTO) terms. This Checklist highlights the principal points to consider when selling goods from the UK for supply...

What are the key issues for lawyers to consider? Ascertain whether an Event of Default or a Termination Event has taken place, as this will dictate whether Section 6(a) or Section 6(b) of the ISDA Master Agreement will apply. If an Event of Default has occurred, confirm whether or not Automatic Early Termination is applicable. This will be specified in the Schedule to the ISDA Master Agreement...

ARCHIVED This Checklist is archived and is no longer maintained. Brexit From exit day (11 pm on 31 January 2020), the UK ceased to be an EU Member State. Under the Withdrawal Agreement, an implementation period applies during which EU law continues to govern the UK, which affects this Checklist. For further guidance, refer to Brexit Bulletin—key updates, research tips and resources—and the Brexit collection. On 3 February 2020, the UK and EU outlined their initial negotiating positions for the post‑Brexit UK‑EU relationship. Although the Political Declaration, appended to the Withdrawal Agreement, describes the framework for the future relationship, it is not legally binding, so either party may choose to move away from parts or all of it. If talks on a trade agreement between the UK and the EU do not succeed (a no trade deal Brexit), trade between the UK and the EU would default to World Trade Organisation (WTO) terms. This Checklist identifies key points a UK business should consider when providing services (including...

Capital Housing Association Ltd v Ealing London Borough Council and another [2025] UKUT 125 (AAC) What are the practical implications of this case? This was an atypical appeal, initially set before a three-judge UT panel on the footing that it raised a point of law of special difficulty, or an important issue of principle and practice, namely the proper interpretation of the HB Regs (SI 2006/213), regs 88 and 101. Regulation 101 addresses recovery of housing benefit overpayments, while reg 88 imposes a duty—both on tenants and on any party to whom the benefit was paid—to notify the authority of a change of circumstances. Who is the correct recovery target under reg 101 may hinge on how changes were notified pursuant to reg 88, and the panel expected a detailed analysis of the prescribed methods by which reg 88 notifications operate. In the event, however, the UT did not need to determine that precise issue, thereby removing some of the anticipated complexity...

Pagden (as Security Trustee under a Security and Intercreditor Deed dated 24 December 2015) and others v Ridgley [2025] EWHC 2674 (Ch) What was the background? Orthios Eco Parks (Anglesey) Ltd and Orthios Power (Anglesey) Ltd (together, the Companies) sat within the Orthios Group. The group obtained capital from Cresta Energy Ltd (Cresta), which put £66m into bonds issued via MPB Eco Parks Ltd (MPB), and from between 300 and 400 retail investors who subscribed £36.4m of bonds. Those bonds were backed by fixed and floating charges over land granted by the Companies, with all such security vested in Mr Colin, as security trustee, under a Security Trust Deed. On 25 March 2022, after an event of default, Mr Colin used his qualifying floating charge to appoint Mr Ridgley as administrator of the Companies. He did so without consulting Cresta beforehand. In late April 2022, Mr Colin executed a letter authorising Mr Ridgley’s sale of the land subject to the fixed charges and agreeing the following: remuneration to Mr...

Cancrie Investments Ltd v Haider [2024] EWHC 2302 (Comm) What are the practical implications of this case? This judgment offers a clear exposition of the principles governing costs after inter partes continuation applications, and adds to the growing line of authority endorsing the proposition that the usual course is to make a costs order rather than reserve costs, unlike the approach commonly taken on interim applications. In its wake, those seeking to persuade the court to reserve costs on such applications face an even steeper climb, as the Commercial Court expressly echoes the reservations voiced in Harrington & Charles Trading Ltd v Mehta [2023] EWHC 609 (Ch) about the correctness of Al Assam v Tsouvelekakis [2022] EWHC 2137 (Ch). The decision also usefully delineates the differences between inter partes applications and applications for freezing injunctions, and explains how those differences justify divergent default positions on costs for each category. Overall, the court reaffirmed that costs should follow the event on inter partes continuation hearings, rather than being parked...

Terminating a derivative under an ISDA Master Agreement When ending a derivatives contract documented under an ISDA Master Agreement, it is vital to follow the termination provisions exactly as drafted. Any misstep may mean the termination is not properly effected and could be invalid. Section 6 (Early Termination) details the outcomes that follow once an Event of Default or a Termination Event—each described in Section 5 (Events of Default and Termination Events)—has occurred. Put simply, an Event of Default involves fault attributable to a party, while a Termination Event usually arises without blame or beyond a party’s control. Section 6 also explains how the close-out netting mechanism operates after an Event of Default or Termination Event. For more detail, see Practice Notes: Scope of the ISDA Master Agreement part 4—Section 5 (Events of Default and Termination Events) and Scope of the ISDA Master Agreement part 5—Section 6 (Early Termination). Termination events...

This Practice Note provides guidance on costs pursuant to the Hong Kong International Arbitration Centre (HKIAC) Administered Arbitration Rules 2018 (the 2018 HKIAC Rules; HKIAC 2018). As outlined in Practice Note: HKIAC (2018)—the HKIAC Administered Arbitration Rules—application and key features, the 2018 HKIAC Rules generally apply to HKIAC arbitrations begun on or after 1 November 2018, unless the parties stipulate otherwise; where proceedings commenced before 1 November 2018, the 2013 HKIAC Rules will generally govern, save where the parties agreed otherwise. A dedicated ‘2018 Schedule of Fees’ applies to arbitrations administered under the 2018 HKIAC Rules. HKIAC has also issued two Practice Notes on Costs of Arbitration, based on HKIAC 2018: Sch 2 (hourly rates) and Sch 3 (sums in dispute). These took effect on 11 March 2019 and apply unless the parties have agreed to a different approach. For an introduction to HKIAC and its organisation, see Practice Note: HKIAC—background to and structure of the institution. In every arbitration, parties and their advisers should at all times keep...

ISDA documents The 1992 and 2002 editions of the ISDA Master Agreement (together, the Master Agreements) are standard-form documents issued by the International Swaps and Derivatives Association, Inc (ISDA). Within this Practice Note, any reference to a Section of a Master Agreement or a Part of a Schedule should be read as a reference to the 2002 ISDA Master Agreement and its Schedule, unless stated otherwise. For general guidance on negotiating ISDA Master Agreements, see: Introduction to negotiating ISDA documents. Section 6—Early Termination Section 6 (Early Termination) of the Master Agreement explains the consequences that follow the occurrence of an Event of Default or a Termination Event, as described in Section 5 (see Practice Note: Scope of the ISDA Master Agreement—Section 5 (Events of Default and Termination Events)). It also sets out the way the close out netting mechanism operates after an Event of Default or Termination Event...

This Agreement This Agreement is dated [ insert date ] Parties [ insert name of employee borrower ], of [ insert address ] (Employee) [ insert name of employer lender ], a company incorporated in England and Wales with registered number [ insert company number ], whose registered office is at [ insert address ] (Employer) The parties agree as follows: Definitions 1.1 In this Agreement, unless stated otherwise: Drawdown Date means [ insert date ]; Event of Default has the meaning given in Clause 6; Loan means the sum of £[ insert figure ] (£[ insert amount in words ]) to be advanced by the Employer to the Employee under this Agreement, to the extent not yet repaid; Repayment Date has the meaning given in Clause 4. The Loan 2.1 Subject to the provisions of this Agreement, the Employer will provide the Loan to the Employee for the...

Definitions Core expressions include Additional Service, Anti-bribery Laws (including BA 2010), Codes of Practice, Legislation, Occupier, Occupation Agreement, Services, Termination Event, VAT and Working Day. Appointment and Duties The Owner appoints an independent Property Manager to provide the Services with appropriate skill, care and diligence, in line with good estate management and the Codes of Practice, always acting in the Owner’s best interests. Authority and Fees The Property Manager may act for the Owner within approved limits, engage specialists where reasonably necessary, and must obtain consent for material matters. Fees track recoverable service charge provisions; Additional Services are separately agreed and all fees are subject to VAT against a valid invoice. Insurance and Liability The Property Manager maintains professional indemnity and public liability insurances and indemnifies the Owner for losses arising from any breach, negligence, misconduct or default. Termination and Handover The Owner may terminate on a Termination Event. Upon ending, the Property Manager must transfer accounts, documents and information, assign...

Notice designating an Early Termination Date following an Event of Default [ Insert Lead-In Language ] An Event of Default under the Agreement has arisen with respect to you in relation to: Section 5(a)(i) (Failure to Pay or Deliver) Section 5(a)(ii) (Breach of Agreement) Section 5(a)(iii) (Credit Support Default) Section 5(a)(iv) (Misrepresentation) Section 5(a)(v) (Default under Specified Transaction) Section 5(a)(vi) (Cross Default) Section 5(a)(vii) (Bankruptcy) Section 5(a)(viii) (Merger Without Assumption) The particulars of the Event of Default are set out below: [ Insert description of the relevant Event of Default, see Exhibits to this template notice for examples of descriptions of different Events of Default under the Agreement ] Where Bankruptcy has occurred and Automatic Early Termination applies: Automatic Early Termination has been specified as applicable to you in the Schedule to the Agreement, and the circumstances described above constitute an Event of Default under Section 5(a)(vii) [ (1)/(3)/(4)/(5)/(6) ] [ or, to the extent...