What is a cure provision?

What is a cure provision?

An equity cure provision allows a borrower’s shareholders to inject additional equity into the borrower in order to cure an existing breach of a financial covenant, so that the breach does not trigger an event of default.

What does cure mean in a contract?

In the context of contract law, the term “cure” means to correct or remove a defect that would be considered a breach by the curing party. For example, a landlord may give the tenant a set amount of time to correct, or cure, a lease violation or face an eviction lawsuit.

What is a notice and cure provision?

If the Contractor breaches the Contract, and the State, in its sole discretion, determines that the breach is curable, the State will provide the Contractor notice of the breach and a period of at least 30 days to cure the breach.

What is a cure Right?

Rather, a Seller’s “right to cure” means that the Seller simply has the option to cure a defect once the Buyer notifies the Seller that there are defects to which the Buyer objects.

What does a cure mean in mortgage?

Email. Created July 2013. If you are behind in mortgage payments you are in “default.” If you pay the bank all the payments you missed, you can “cure the default”. The bank must send you a notice that says you have the right to pay the money you owe.

What is a cure in the mortgage industry?

This is a government-standardized form that outlines all the charges and fees you can anticipate to pay during the closing process. The important thing to note, however, is that each of these charges has a tolerance level that determines how much it can increase at closing.

What does Subject to cure mean?

adjectiveable to be improved, fixed. amenable. capable.

What does it mean to cure an account?

Related Definitions Cure Account means the deposit account in the name of the Borrower with the Account Bank designated by the Borrower and the Agent as the “Cure Account” and includes any replacement of that Account. Sample 1.

What is cure period in lease agreement?

The term “Cure Period” as used herein means a period commencing on the date Buyer or Seller receives from the other written notice of breach or default hereunder and continuing until the earlier of (i) twenty (20) calendar days thereafter or (ii) five (5) business days after the scheduled Closing date; provided.

What is a notice of Right to cure default?

The notice must tell you that you are in default and that you have 30 days to cure the default. The Right to Cure Notice says that if you do not get caught up on your payments, “cure your default,” the bank can begin foreclosure proceedings to take your house.

What is a lender cure?

Lender Cure Period means the period given any Lender to cure any default of Landlord, as provided in Section 13.3 of the Lease. Sample 2.

What is a cure period in finance?

A time frame of 30 to 90 days during which a company that has gone into technical DEFAULT on a contractual payment is permitted to submit payment without further prejudice, and without being considered to have defaulted. Also known as GRACE PERIOD.