Jurisdiction(s):
United Kingdom

Key definition

Event of default definition

What does Event of default mean? An event of default is a contractually defined trigger that, when it occurs, entitles the non-defaulting party to terminate the contract and/or exercise agreed remedies (for example, accelerate debt, enforce security, suspend performance or step in). It is not a statutory term; its meaning depends on the wording of the contract and is used across finance, commercial and derivatives documentation (for example, LMA loans and the ISDA Master agreement). Typical events include non-payment, breach of covenants or undertakings, misrepresentation, insolvency or insolvency proceedings, cross-default, illegality, change of control and material adverse change. Clauses often require notice, allow a cure or...

Waivers, Consents and Amendments under Facility Agreements: when to seek them, lender decision-making, risks of delay, processes in syndicated loans, guarantor/security implications, and documenting and conditioning waivers

Published by a LexisNexis Banking & Finance expert

Practice notes

This Practice Note addresses:

the distinctions between amendments, waivers and consents
the circumstances and reasons for seeking a waiver
how to submit and respond to a waiver request
factors for lenders when deciding how to reply to the request
the risks to lenders of disregarding a default
conditions that may accompany the grant of a waiver or consent
how such arrangements ought to be documented

What is the difference between amendments, waivers and consents?

Fundamentally, any departure from the terms of a facility agreement requires an amendment, a waiver or the lenders’ consent. Both waivers and amendments call for lender approval. On a bilateral facility this is typically straightforward, but it becomes more involved on a syndicated transaction. Syndicated facility agreements based on Loan Market Association (LMA) documentation treat variations to any finance document as either an amendment or a waiver. Separately, some facility agreements are drafted to permit specified actions where the lender has consented, or, in a syndicated context, where all or a majority of lenders have consented...

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Web page updated on 22/05/2026

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